Are you on the right financial path? When will you be able to retire and what financial adjustments would be advisable for you to reach your goals? Our comprehensive financial plan reviews multiple aspects of your current finances and your…
Category: Education Funding
Using a ROTH IRA for Educational Expenses
If you withdraw earnings from a Roth IRA before you’re 59 1/2 (or even if you are 59 1/2 or older but you haven’t held the account for five years including conversions), you will pay taxes at your ordinary income…
The Downside of Student Loan Forgiveness Programs
Borrowers participating in Federal Loan forgiveness programs have a big tax liability waiting at the end of the term, any remaining balance would be forgiven but taxable. Under federal tax rules, that disappearing debt is considered part of a borrower’s…
Factoring a gap year into college savings
I recently had a parent ask me if their child’s 529 college savings account money could be used to help pay for gap-year expenses. Here’s the short answer: Maybe. If you’re hoping to use your child’s 529 account to pay…
Parents: Get your finances ready for the FAFSA
Parents of high school seniors still have a few last-minute opportunities to maximize their college-bound student's chances at financial aid. Families can file the Free Application for Federal Student Aid (FAFSA), which is the form that determines your family's eligibility…
How to Win at Getting College Financial Aid
Want to boost your chances for college financial aid? Start early — as in, before your child's sophomore year of high school. Until your child is a high school senior, you don't have to tangle with the Free Application for…
Savings Fundamentals
Here’s how to prioritize goals to make saving be more effective: Contribute to your company’s retirement plan up to the maximum employer match. Even if money is tight and you have multiple priorities, make it your first goal to contribute…
New Benefits for 529 Plans
On December 18, 2015, Congress approved the “Protecting Americans from Tax Hikes (PATH) Act of 2015”, which includes provisions that impact 529 plans. President Barack Obama signed the bill into law the same day. Computers Previously, 529 rules treated computers…
Overfunded College 529 plan? No Problem!
While most Americans have made little if any progress in their college savings goals, others have a more enviable dilemma of potentially running past the finish line. Still others have found that their children aren’t choosing the collegiate path.…