How Taxes Determined When My Son, Liam, Was Born

11 Years Ago, Today, My Son Liam Was Born…

“Okayyyy….what’s the big deal, Josh?” I can hear you asking.

Well, Liam is the 4th, and last, of our children. The previous 3 were born via C-section and Liam would be as well. We were hoping for 5 children but the Doc said after 4 C-sections the risk to my wife was getting larger so maybe call it a career. Which we did! 🙂 (I don’t know how women do it, C-section or otherwise. It’s a toughness I certainly don’t have.)

The “nice” thing about C-sections though is you can pretty much determine the date of birth. So the Doc asked us if we wanted a new years baby.

To which I said, “well I am a financial planner, so I’d rather have him born in THIS calendar year to get the tax exemption!”
My line of thinking was that presumably we’ll get 18 years of exemptions with ole Liam but you can never bank on that. Tax codes change. Incomes change. Lots can happen between now and when Liam is an adult.

Secondly, the old rule of “one in the hand is better than two in the bush” applies as well.Take the money NOW as opposed to waiting until 18 years later, when it might never appear.

And thus, Liam was born, 12/31/2007. And, of course, we’ll celebrate with him today. “My little tax cut”, I call him. As he gets older, he’s starting to understand what I mean by that.

Sad, in a way, when the tax code can determine literally the size of your family. Wouldn’t it be nice if just had a flat tax? You make X, you pay Y, no deductions, no complexities. No LOBBYISTS trying to skew the tax code to their favor? It would also be nice if human beings didn’t go to war, if no one was addicted to drugs or alcohol, and if we forever stopped flirting with Socialism.

But those things won’t happen. And thus you do what you have to do to maximize your financial situation, today. Nothing wrong with that in the least.

So, I ask you, as we go into the new year, what are YOU going to do to maximize YOUR financial situation? Would love to hear. Feel free to email me and let me know and I’ll do a video on this. Obviously, I won’t name names or give away trade secrets but I find it of interest and I imagine others will too.

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