You might have heard some buzz about the SECURE Act 2.0 and the ability to transfer 529 funds to a Roth IRA. You may also be wondering if you can take advantage of this new rule. To help clear up some of the questions you may have, we’re offering this flowchart for you. It covers important issues such as:
By John Fales
Did you know September is College Savings Month? A great reminder to consider how saving for college (or any education) fits into your overall financial plan. There are steps you can take to help ease the burden of education costs and many you can start at any age.
As a parent, you of course want to give your child the best opportunity for success, and for many, attending the “right” university or college is that opportunity. Additionally, the earlier you consider how you expect to pay for college costs, the better.
Today, the average college graduate owes $28,950 in debt, while the average salary for a recent graduate is $55,360.
Preparing for college means setting goals, staying focused, and tackling a few key milestones along the way—starting in the first year of high school.
By Marc C. Shaffer
My wife recently gave birth to our first child, a baby boy. Not only was he an infertility miracle in the making (that’s another financial story for another day!), but his birth also created the need for estate planning updates across the board.
Caring.com’s 2021 Wills and Estate Planning Study showed a promising statistic for young parents: In 2021, 18-34 year-olds are, for the first time, more likely to have a will than 35 – 54 year-olds. Bringing a child into the world means you’re responsible not just for keeping them alive and healthy each day, but for setting them up for success in the event that you’re not around to care for them any time in the future, which is where a strong estate plan comes into play. Here are three main steps to help you get started:
By Jessica Searcy Kmetty
A child turning 18 is as much a milestone for them as it is for their parents or guardian.
When your child turns 18, they could find themselves in a variety of life stages. They could be heading off to college, starting a job and forging out on their own, or even still be in high school and living in your home.
For parents, no matter where your child finds themselves at this age, you will now be in a position where information about them isn’t available to you. At 18, parents are abruptly cut off from their child’s protected information, such as medical, financial and academic records.
By Marc Shaffer
Congratulations! Your child has received a scholarship and now you’re probably wondering how this will factor into your 529 Plan.
By Marc Shaffer
A UTMA could be a beneficial choice for your family if you have children or grandchildren. Often, adults open these accounts for minors for future education needs, but they are not strictly for education funding purposes. I have friends who have used their UTMA accounts for a down payment on a home, to fund an overseas adoption, and to open a business. Not only did they provide them with funds, but they were also a learning opportunity. Most of these friends had to manage their accounts from the time they were no longer a minor to the time the funds were used. The account became their responsibility to oversee and manage for their future.
By John Fales and Marc Shaffer
The concept of a “perfect time” to do things is one that is both not quite realistic yet incredibly understandable. One that is often talked about and pushed off to another, better time is having a baby. Not quite realistic because there will always be something or other standing in your way, yet incredibly understandable because of the myriad tasks that would be helpful to complete before starting a family. There may never be a perfect time to start a family, but no matter where you are in your journey, there are some common considerations for your financial planning.
By Marc C. Shaffer
If covering the cost of a college education for a child or loved one is a priority for you, there are ways you can do it that are tax advantaged and that allow you to save over time to meet the goal rather than trying to come up with money when the recipient is 18 and going to college. A 529 Plan could be a solution that fits your needs. Not only does a 529 Plan account grow tax free, but as a Kansas or Missouri resident, you get a state income tax deduction to save you money today.
By Ryan W. Brooke
There are many instances where someone might offer to co-sign a loan. A parent may be helping a child with a loan for a vehicle or home, perhaps because the child lacks the credit history to secure a loan on their own. Someone might co-sign a home or vehicle loan for a friend who has poor credit history. In these instances, there is an actual item being considered that could be collected in the event of a death. But what about student loans? How “on the hook” are co-signers in the event of a death?