The Gehler Luedke Group

07/15/2025

The MARRIAGE CHECKLIST Part IV: Understanding Your New Tax Situation
[Part 4 of a 6-part series on exactly how my wife and I are organizing and planning our financial future together as newlyweds.]

Most people do their taxes. Very few actually understand them—and that’s where real money can be lost.

When Mariana and I got married, we knew our tax picture was going to change. But instead of guessing, we used the same resources our clients have access to:
✅ Holistiplan – Baird's tax analysis software that scans your return and highlights hidden planning opportunities
✅ Eric Wikstrom, our Baird Regional Tax Strategist, who ran multiple scenarios tailored to our income, goals, and Public Service Loan Forgiveness (PSLF) situation

We treat tax returns like financial blueprints—not just compliance documents.

🔍 Here is exactly what we did:
• We each uploaded our 2024 returns into Holistiplan to establish a baseline
• Eric modeled several 2025 scenarios: filing separately, filing jointly, and how each would impact PSLF payments
• We reviewed our new marginal and average tax rates and saw what we’d likely owe under each scenario

🧠 What we learned:
1️⃣ Filing separately would’ve created unnecessary complexity with minimal tax or PSLF benefit
2️⃣ Filing jointly likely lowers our bill—and gives us a clean, streamlined approach going forward
3️⃣ I’ll be switching from a Roth 401(k) to a Traditional 401(k) to take advantage of the deduction and create some "tax bucket diversification."
4️⃣ We’ll continue our annual backdoor Roth IRA contributions
🌟 Bonus: At Baird, I can make "after-tax 401(k) contributions" (or a “mega backdoor Roth”)—a powerful move if you’re already maxing your other accounts. Ask your employer if this is an option.

🧩 Why this matters for you:
Reviewing your return is like a doctor reviewing your bloodwork—you need the full picture to give great advice. A few overlooked numbers can quietly impact your:
✅ 401(k) strategy (Roth vs Traditional)
✅ Eligibility for Roth or backdoor Roth contributions
✅ Student loan repayment plans (especially under IDR)
✅ Whether to itemize vs. take the standard deduction
✅ Tax efficiency of your investments (e.g. muni bonds vs taxable, avoiding unnecessary capital gain distributions)
✅ Realization of whether you’re using all available deductions

📌 What you should know—or ask your advisor/accountant:
✔ Your marginal and average tax rates
✔ Your MAGI and AGI
✔ Whether your filing status affects student loan repayment or Roth eligibility
✔ Whether to itemize or take the standard deduction
✔ What tax planning opportunities you’re missing by not reviewing your return strategically

07/08/2025

The MARRIAGE CHECKLIST Part III: Understanding Cash Flow and Budgeting
[Part 3 of a 6-part series on exactly how my wife and I are organizing and planning our financial future together as newlyweds.]

If you don't know what's coming in and going out, you're not in control -- you're just coasting.

Budgeting isn't a cage, it's a map.

Why it matters:
Managing your household finances is just like running a business. It all ultimately boils down to money in, money out, and what's left. Understanding your cash flow is crucial for effective financial planning. I expect every financial planning client to do it, so why wouldn't we?

Even if you think, "I pay my bills and have money left over after, I'm good" -- doing this is good financial hygiene. Most financial stress for high earners doesn't come from lack of income, it comes from not knowing. Not knowing what is safe to spend, where you're money is leaking, or if you're on track.

Here is exactly what we did:
1️⃣We each printed off one month's worth of pay slips. Mariana receives two paychecks per month, and I receive one. Hers stays relatively consistent while mine can vary a bit based on market conditions and business growth. What was important for this exercise was understanding our total NET monthly income (what is left after taxes, deductions, and witholdings). Now we know our money IN.
2️⃣ We printed off 3 months of credit card and bank statements. Many financial institutions have tools like Chase Bank's "Spending Planner" or monthly spending reports that will break down and categorize transactions for you, but be sure to double-check them and consider using colored highlighters to identify fixed vs. discretionary vs. "one-off" expenses.
3️⃣We filled out Baird's "Budgeting Worksheet" (attached below, the same I would provide to any planning client) to consolidate our expenses into a single space. Now we know our money OUT.

‼️Important Notes:
▪️Keep an eye on VENMO, PayPal, Apple Pay, etc. These expenses can fall through the cracks, but they can quickly add up when tracking spending.
▪️Consolidate payment streams where you can. It can be tempting to have a card for this, that, and the other thing - but I would encourage simplification and organization.

Other helpful tools:
▪️Microsoft Excel, YNAB, Monarch Money and apps like Rocket Money can help you identify that you are paying for Peacock in three different places, and surprise, you've been donating $15/mo to Audible since 2020.
▪️Your bank or credit union may have tools already built in.

It doesn’t need to be perfect, but it needs to be honest. With financial planning, garbage in, garbage out.

Once you understand your cash flow, everything becomes easier and you can start financial planning for near-term and long-term goals, savings rate, and tax-smart investment strategies.

Take an hour this weekend - you might have an "ah-ha" moment. If you're overwhelmed, shoot me a note, we help clients with financial plans every day.

07/01/2025

The MARRIAGE CHECKLIST: BENEFICIARIES & ACCOUNT TITLING
[This is part 2 of a 6-part series on exactly how my wife and I are organizing and planning our financial future together as newlyweds.]

One of the very first financial steps Mariana and I took after getting married was reviewing how all our accounts were titled and ensuring our beneficiary designations were up to date. I've reviewed hundreds of accounts over the years, and it is not uncommon for people to unknowingly have parents, siblings, or even ex-spouses listed as their primary beneficiaries.

Why is this so important?
Beneficiary designations and account titling override your will—so even in a community property state like Wisconsin, it's critical that everything aligns properly. Mismatches can create costly delays and unnecessary stress.

Here's exactly what we did:
First, we made a list of ALL of our accounts and confirmed:
1. Who owns this account?
2. What happens to it if one of us dies or becomes incapacitated?

Here is what we reviewed and updated:
✅Retirement Accounts (401(k), 403(b), IRAs, pension and deferred comp): Each lists the other as primary beneficiary. These accounts bypass your will entirely and pass directly according to your beneficiary designation.
✅Joint Brokerage Account: Our investment account is titled "Joint Tenants with Rights of Survivorship" or "JTWROS" or "WROS." This type of property ownership involves two or more people owning an asset together, and when one owner dies, their share automatically transfers to the surviving owner, bypassing the need for probate. (As an aside, starting a joint investment account feels like such a relationship milestone. Talk about intimacy!)
✅Individual Brokerage Account: I added "Transfer on Death" or "TOD" instructions so the account can be transferred directly to my wife and avoid probate.
✅Bank Accounts: We added Payable on Death or "POD" instructions on our individual checking and savings accounts -- same idea as "TOD" above, but for bank accounts. Different language, same outcome.
✅Life Insurance: We updated both employer-provided and supplemental term policies to name each other as primary beneficiaries. You should consider adding contingent (secondary) beneficiaries, too. (Major life events like marriage, having a baby, buying a house are all GREAT times to review your policy benefits.)
✅Health Savings Account (or "HSA"): Yes, even your HSA needs a beneficiary. Mariana is now listed as mine. (HSAs are more powerful than you think, but we can save that for another time.)
✅Alternative Assets: If you have an account that holds things like digital assets, these don't currently allow beneficiary or TOD instructions, but you can still plan for them. I recommend making sure your spouse knows:
1️⃣What you own
2️⃣Where it is and how to access it
3️⃣Who it should go to (if not captured in a will or estate plan)

Mariana has all of these details.

Final thoughts below:

06/24/2025

The MARRIAGE CHECKLIST:

Just over two weeks ago, I married my best friend in what was truly one of the best days of our lives. It was expensive, but we wouldn’t change a thing. Bringing all of our family and friends together for a night of celebrating was worth every penny.

Getting married and combining finances is one of those pivotal moments where being deliberate about your financial plan can make all the difference in setting yourself up for a prosperous future.

Attached below is a checklist I provide to clients (or their kids and grandkids) who are getting married, with some high-level financial considerations. But I want to go one step further.

Just like you might ask your doctor, “What do YOU do to stay healthy?” Over the next few weeks, I'll show you exactly how we're putting our own financial house in order. Most people don't know how easy it is to overlook something critical, so think of this as real-life financial planning in action.

04/07/2025

You will hear many opinions about what might happen, but no one truly knows how this situation will unfold. These times can be challenging and may seem to last indefinitely. It's important to resist the temptation to make short-term decisions with long-term investments. Have a plan, work YOUR plan, and stay patient.

04/04/2025

Ross provides context and insight after sweeping tariff announcements disrupted global markets.

10/23/2024

FULL HOUSE yesterday for Baird Market Strategist Michael Antonelli at the Marriott Madison West! Clients packed the room to hear Mike provide his unique and optimistic takes on behavioral finance, and put the current markets in perspective to help clients avoid making THE BIG MISTAKE. A couple of key takeaways:

- American innovation happens regardless of who is in office. In 1993, a trillion-dollar tech company called NVIDIA was founded at Denny's. In 1971, three guys started Starbucks in Seattle, WA. These, like every successful entrepreneur before them never stopped and said "We should pursue this dream ONLY IF *our candidate* wins the election!" Innovators are going to innovate, period.

- Millennials and Baby Boomers are more alike than we are different. Boomers, previously the largest generation who founded companies, worked to provide for themselves and their families and simply LIVE THEIR LIVES, are now followed by Millenials, the current largest generation, who are starting companies, working to provide and entering OUR prime earning (and spending!) years, simply LIVING OUR LIVES -- this is what drives economies and markets.

- See the chart below. The markets are indifferent to who wins elections. "But what about his/her policies?!" Throughout that chart -- there were a lot of policies. Proposed policies, failed policies, passed policies -- and long-term investors who didn't make THE BIG MISTAKE of panic selling were rewarded for it.

- Finally, my personal favorite: Pessimists sound smart/get headlines. Optimists make money. Which path will you choose?

08/14/2024

Yesterday, our Baird Madison office hosted a successful "Learn to Play Pickleball Clinic" at Hitters Tennis and Pickleball Club in Middleton! It was fantastic to see clients, friends, and family come together to embrace the fastest growing sport in America and refine their skills with local pickleball pros.

In addition, we are thrilled to announce our support for the upcoming Baird CAPA Cup this weekend in McFarland, benefiting the Boys & Girls Club of Dane County. With nearly 250 registered players, it will be an exciting event for a great cause.

08/13/2024

Listen, I love a good chart as much as the next guy. It is interesting information, provides perspective and perhaps most importantly reinforces good investing behavior. Like this piece below from Hartford Funds I received this morning. Interesting stuff that reinforces our mantra of "do not time the market, have a plan and just get in."

Short-term thinking:
"I'm going to go to cash until after the election."
"I'm not going to invest until I see who wins the election."
"I'm worried about who will win the election and what will happen in the stock market."

Long-term thinking:
"I have a financial plan and investment policy statement, so regardless of who wins, I will stick to my plan."
"I have an emergency fund and cash management strategy in place, so regardless of any near-term volatility or weirdness, I'm not going to lose sleep over it."

08/06/2024

Market drawdowns like yesterday are tough, but perspective and planning are critical.

Did you know the average intra-year drawdown for the S&P 500 from 1928 to 2023 was -16.4%? Since 1950, the average correction in a given year was -13.7%. This century it’s been -16.2%.

Avoiding speculation, and having reasonable expectations, an emergency fund, and a cash flow strategy you understand can help you sleep at night and ride the waves.

08/06/2024

08/05/2024

The selloff in global stocks over recent days has been sharp and swift, with volatility spiking to levels unseen since 2020.