Tax Law Changes, Tricorder Tech, and Retirement Rethinks: Why Freelancers and Families Must Rethink Their Financial Future
Recent tax law changes may affect individual tax deductions, particularly for freelancers. Freelancers may find it harder to qualify for home office deductions due to stricter IRS rules, with the office needing to be exclusively used for business. Self-employed individuals carry the added responsibility of creating their own retirement accounts, but they can contribute more than traditional employees, offering larger tax deductions. Despite their fame, celebrities are not immune to financial trouble Elvis Presley had limited savings at death, while Priscilla Presley later turned Graceland into a $100M-per-year operation. These examples show that defining financial goals is critical. Many people confuse dreams with goals, but goals require specific dates and dollar amounts. Without this clarity, it’s nearly impossible to determine savings targets or needed returns.
Financial advisors can help individuals create actionable plans. While some employers are shifting to less frequent 401(k) contributions, the overall impact on retirement savings is minimal. Still, many workers contribute only enough to receive employer matches, which may not be enough. It’s advisable to contribute the maximum regardless of employer participation. Retirement itself is being redefined thanks to increasing lifespans and medical advances. Rather than stopping work entirely, more people may retrain or change careers into their 70s and 80s. Technology will also play a role in this future. Innovations similar to the “Star Trek” tricorder are emerging, capable of diagnosing illnesses and offering remote care.
This continuous monitoring enables early detection, reduces costs, and increases global access to healthcare. In terms of inheritance, understanding property tax basis is critical. When one spouse dies, the surviving spouse often receives a “step-up in basis” on jointly owned property, reducing future capital gains tax if the home is sold. However, many miss this opportunity or improperly add children to the deed, triggering unwanted tax consequences. Consulting a tax advisor can help avoid costly mistakes. Experts consistently advise saving as much as possible, even when it feels difficult. Seeking professional help based on personal financial stages can offer clarity and long-term security. Starting early leads to more retirement options and peace of mind. Embracing life changes—whether in career, health, or lifestyle fosters growth and resilience.
New challenges, like learning a sport or zip-lining for the first time, reflect how stepping outside your comfort zone can enhance personal well-being. Recognizing seasonal changes in both nature and life can guide better financial and emotional decision-making.
All information provided is for educational purposes only and does not constitute investment, legal or tax advice; an offer to buy or sell any security or insurance product; or an endorsement of any third party or such third party’s views. The information contained herein has been obtained from sources we believe to be reliable but is not guaranteed as to its accuracy or completeness. Whenever there are hyperlinks to third-party content, this information is intended to provide additional perspective and should not be construed as an endorsement of any services, products, guidance, individuals or points of view outside Edelman Financial Engines. All examples are hypothetical and for illustrative purposes only. Please contact us for more complete information based on your personal circumstances and to obtain personal individual investment advice.
Neither Edelman Financial Engines nor its affiliates offer tax or legal advice. Interested parties are strongly encouraged to seek advice from qualified tax and/or legal experts regarding the best options for your particular circumstances.
