This episode provides an overview of significant changes to tax laws announced on July 4th, 2025. Key points include the permanency of temporary tax laws from 2018, slight increases in standard deductions, and significant increases in the state and local tax (SALT) cap from $10,000 to $40,000. Additional updates include adjustments to charitable contribution deductions, new senior tax deductions, auto loan interest tax deductions, and child tax credits. Other notable changes include the expiration dates for electric vehicle and home energy efficiency tax credits, as well as the introduction of new investment accounts for newborns.

In this podcast episode, Lucas Casarez interviews Rizel Scarlett about her journey into the tech industry, her experiences with family life, and her insights on community building and leadership.

Rizel shares her background, starting from her challenges as an undocumented immigrant in college, transitioning into tech through programs like Resilient Coders, and eventually securing roles in tech companies.

She discusses the importance of learning in public and building a professional network through social media and community involvement.

Rizel also talks about balancing her career with motherhood, emphasizing the need for clear communication with her spouse and employer to manage expectations.

She highlights the value of community support in overcoming career challenges and shares her approach to leadership development by learning from mentors and managers.

The conversation underscores the significance of stepping out of one's comfort zone to achieve personal and professional growth.

Should You Cash Out Your 401(k) Retirement Account?

In this episode of Techie Personal Finance Bootcamp, we explore the critical question of whether you should withdraw from your 401k. We discuss common reasons for considering a withdrawal, such as emergencies and market fears, and highlight the financial downsides, including taxes and penalties. The episode also covers alternative solutions like 401 (k) loans and emphasizes the importance of informed decision-making to avoid long-term financial stress.

00:00 Intro
06:24 10% Penalty
07:04 Federal & State Income Taxes
08:27 Special ROTH Features To Avoid Penalty and Taxes
09:04 Less Resources, Less Time To Build It Back
11:53 401 (k) loan alternative
13:10 Different Exemption Rules To Be Aware Of
14:03 Separation after age 55
15:24 Home Equity Loan/ Line of Credit
17:20

Feeling like you're stuck living paycheck to paycheck? 🤔

Join Lucas Casarez, tech financial planner, as he dives into the hidden financial wins you might be overlooking!

Retirement Savings

Welcome to Techie Personal Finance Bootcamp. Many of you might feel like you're living paycheck to paycheck, not saving as much as you'd prefer. However, if you step back, you'll see activities adding value, akin to savings, even if they're not channeled into emergency funds. For example, significant contributions to retirement accounts can often go unnoticed. Even if you're maxing them out annually, this is indeed a form of savings that many forget to acknowledge.

Employer Stock

Besides regular savings, you might have stock options or employer compensation in stock form. Whether it's through an employee stock purchase plan, RSUs, incentive, or non-qualified stock options, allowing these to build up can reflect significant savings. It's crucial to acknowledge these investments rather than selling them off to fund lifestyles because eventually, they prove to be a powerful asset.

Home Equity

Home equity is another asset often overlooked. If you've owned a home for five years or more, not only has the equity likely increased, but a low locked-in mortgage rate gives you a competitive edge. Especially for younger generations, such equity contributes significantly to your net worth, even if it's not readily liquid.

Catching Up

For career changers, recent tech bootcamp graduates, or anyone navigating a financial catch-up game, there's potential for financial recovery through income increases. As illustrated, transitioning from a $60,000 to a $100,000 income can greatly impact debt and save for future investments. This progression, while it might initially focus on debt repayment, will eventually contribute to saving and investment growth.

Take Advantage of Opportunities to Get Ahead

It's essential to maintain restraint against lifestyle creep when incomes rise. By sustaining a previous lifestyle after significant pay increases, you're paving a path for financial fortification. Avoiding the trap of higher expenditure and focusing on leveraging these seasons of prosperity ensures you'll establish solid financial footing.

In times of emergencies, whether personal or involving close ones, your preparedness from years of wise financial management can provide the flexibility needed to navigate these challenges with less stress. Always remember, life's financial journey is about making informed decisions today to better equip yourself for tomorrow.

If you have any financial strategy questions or require guidance, don’t hesitate to reach out for a consultation. Understanding your comprehensive financial picture might reveal that you're in a stronger position than initially perceived. Let's keep the conversation going to ensure your financial goals align with your life changes.

Navigating Stock Market Volatility: Long-term Investment Strategies Explained

In this episode of Techie Personal Finance Bootcamp, we discuss the current stock market volatility caused by recent tariff announcements and offer practical advice for maintaining a long-term investment approach. Learn why diversification is crucial, how to manage short-term financial goals, and why now might be a good time to invest, especially for younger individuals.

Non-Profit Sponsor: Tech By Choice

In this video, the host explains why paychecks may be smaller in January 2025 compared to December 2024.

The main reason is due to the resumption of Social Security deductions at the start of the year, which cease once annual income exceeds $176,100. This deduction affects high-income earners significantly, making their early-year finances feel tighter.

The host provides tips on managing cash flow and planning financial contributions around the timing of these deductions, ensuring viewers have clarity on the finances to make informed decisions.

In this episode of Techie Personal Finance Bootcamp, we explore the real value of bonuses, raises, and stock options with a focus on how taxes can greatly diminish their apparent worth. We delve into examples to reveal the true post-tax income you can expect. Additionally, we highlight common mistakes like lifestyle inflation and poor financial planning that can lead to overspending and emphasize the importance of intentional money management and the impact of taxation on financial decisions.

Here is a link to access the Real Value of Raise Calculator. https://docs.google.com/spreadsheets/d/1_5oU96ZLYounxhn-SKBCj6YWcU_HfyaxUxgSDzH3a4s/edit?usp=sharing

This episode delves into the financial issues tech professionals face, focusing on the challenge of managing credit card debt despite high incomes.

It discusses how lifestyle creep, unexpected expenses, and high interest rates lead to debt accumulation.

Emphasizing the importance of financial management, the danger of relying on future financial expectations and underscores the consequences of unchecked debt, such as stress and potential evictions. It provides practical strategies like using budgeting tools, setting savings plans, and adopting the debt snowball approach.

Furthermore, it highlights the need for minimizing unnecessary expenses and leveraging all financial resources to expedite debt repayment, ultimately aiming to regain financial control and achieve long-term goals.