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It’s a voice message extravaganza as Joe and Big Al talk about tax gain harvesting on Dante in New York’s daughter’s custodial account, and the tax impacts of Leon in Chicago investing in his brokerage account. The fellas also spitball on whether Michelle in San Diego, en route to San Francisco, should buy or rent in her 60s, the mega backdoor Roth and the pro rata rule for Sean and his cichlids in Winter Springs, Florida, and whether Jason in NOLA can do the backdoor after recharacterizing his contribution. Plus, should Kevin in Ohio make like the Steve Miller Band and “take the (pension) money and run”? Can Scott in Colorado make like Johnny Paycheck and “take his job and shove it” when it’s time for the rule of 55? And should Suzi and Peter consider long-term care insurance and protecting their assets with an irrevocable trust?
Why does Becca in Florida’s advisor “poo-poo” her strategy for funding 529 plans for education? Keith, commenting on Spotify, wants to know about reimbursing yourself without penalty from a 529 plan for the scholarship amount used for education, and Wendy way up north in New York wants to know if she should use retirement funds to pay for college and home renovations. Plus, what are the pros and cons of starting Roth conversions for Renee in Wisconsin, and is she on track for retirement? Will the IRS penalize Dan in Michigan for not paying Roth conversion tax in January? With the 5-year Roth clock, how does compounding interest work when Aaron in Ohio changes custodians? And Kirk in Iowa wonders how the Affordable Care Act tax credit works with dependents.
Should Jackson and Elsa from Wyoming fire their financial advisors and shop for lower fees, or switch to do-it-yourself financial planning? Can 34-year-old Bob in Texas retire early at 50, and what’s the best way for him to put an extra $30K to work? How much should 35-year-old Matthew in the middle of nowhere Wisconsin be saving for retirement in pre-tax accounts vs. post-tax accounts? And finally, should Michelle in Minnesota leave excess education savings in a 529 plan or move it to a Roth IRA?
As a parent, are you prepared to pay for your children’s college expenses? The numbers can be overwhelming when you look at the cost of sending your adult children to college. Pure’s Financial Planner, Brian Wolff, CFP®, AIF®, will review three investment savings plan options: 529 Plan Coverdell Account Prepaid College Tuition Plan Regardless of […]
Updated for 2023: Your child getting into college is a very exciting time, but finding out the cost and figuring out how you can afford it can be quite overwhelming. Get schooled on the ABC’s of college funding as we answer some of the important questions about how to fund your kid’s college expenses without […]
A little ditty about Jack and Diane, who will eventually inherit about $4.5M from Diane’s parents. How do they manage the required minimum distributions? Which of three options should Matt take with his inherited IRA? Making the most of your inheritance today on YMYW 435. Plus, Clay wants to know if it’s a good idea to take money off the table and rebalance to safer or more aggressive investments, depending on your risk tolerance? Can Elizabeth offset pre-tax IRA losses with the gains from the sale of rental real estate? Is it true that you can make one time contributions from your IRA to your HSA that is, your health savings account? And finally, can Cory gift stock to his daughters and avoid paying the kiddie tax as a way to pay for college? And can Rich supercharge a 529 college savings plan with himself as beneficiary?
The time may be right for a giant Roth IRA conversion, especially now while the market is down, to potentially give you more money to spend in retirement. How does that work with long-term capital gains and dividends, and how much should you convert to Roth, and when, and how? Plus, deciding how to invest 529 plan college savings, whether to save to pre-tax or post-tax retirement accounts, and the ever-popular Backdoor Roth strategy.
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How to Save for Education: 529 Plan, Coverdell, Prepaid Tuition & More | College Planning Strategies
Should you use a 529 plan, Coverdell, prepaid tuition, or a brokerage account to pay for college? Learn the various ways to save for education for your kids and grandkids, the pros and cons of each, and strategies to make the most of your college savings. Transcript: Andi: Thank you all for joining us on […]
If you want to help your child pay for college, or even cover their whole education expense, diverting money earmarked for retirement savings or taking withdrawals from your employer-sponsored retirement plan is one of the fastest ways to derail your retirement. Bryan Ross, CFP®, AIF®, financial planner at Pure Financial Advisors, covers the basics on […]
Has the thought of how to pay for college expenses kept you up at night? It shouldn’t! Sometimes all you need is a plan and knowing what are the best options that relate to your situation. Johnson Andrews, CFP®, financial planner at Pure Financial Advisors, covers three popular college saving plans and their pros and […]
Does it make sense to do larger “Calvin Johnson” (Megatron, aka mega backdoor) Roth conversions when the financial markets are way down? Should you convert to Roth now, or in retirement? How do you spitball the right amount to have in 529 plans for education savings? And are the rules for doing a backdoor Roth the same if you’re married filing separately?
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Learn the basics of Roth IRA conversions, how to calculate the tax on a Roth conversion, when to pay the tax, and more. Plus, ideas for what to do with unused 529 plan education savings funds, rules for 401(a) accounts, understanding the alternative minimum tax, the latest tax proposals, how to calculate employer solo 401(k) contributions – and that’s just the tip of the iceberg.
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Helping your adult children afford a college education is likely one of the biggest investments you’ll undertake. Too often families fail to put together a financial plan for college, so they are tempted to dip into their retirement funds and jeopardize their own financial security. The result: parents are taking on more debt than ever […]
Joe and Big Al field emails on a wide range of personal finance topics this week on YMYW: ex-spouse Social Security benefits, paying the mortgage or buying long-term care insurance, how the FIRE community uses the Roth conversion ladder, tax rules for sole proprietors hiring minors, using excess 529 plan education savings, paying taxes or paying back a Coronavirus Related Distribution, and when to file form 8606 to report IRA contributions.
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Recharacterization of excess Roth IRA contributions, converting post-tax contributions to Roth 401(k), and the pro-rata rule. Plus, target-date fund ladders? Also, investing 529 plan money, section 199A dividends from real estate investment trusts (REITs), and how Matt Stafford should save for retirement with his new $34M LA Rams contract (just in case you’re expecting a football player’s salary anytime soon.)
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