Common Myths About 529 Plans

April 22, 2014

For my grandson’s upcoming first birthday, I mentioned to my daughter-in-law that we might invest in a Pennsylvania 529 college savings plan as our gift. She was a bit concerned since my stepson and his family are Maryland residents, not Pennsylvanians, and would that mean that he’d have to go to a PA school? The reality is that the 529 funds can be used at any college across the country and even accredited schools abroad so her fear was unfounded. My grandson will have the ability to use the money for any college of his choosing and by opening the PA 529 plan, we get the benefit of up to a $14,000 state income tax deduction and the advantage of Vanguard investment options. Continue reading “Common Myths About 529 Plans”

5 Reasons to Contribute to a Roth IRA in the Next 5 Days

April 10, 2014

April 15th is just a few days away and while most people think of it as tax day, it’s also the deadline to contribute up to $5,500 (or $6,500 if you’re over age 5o or over) to a Roth IRA for 2013. Why is this so significant? Well, here are 5 reasons it’s a good idea: Continue reading “5 Reasons to Contribute to a Roth IRA in the Next 5 Days”

Don’t Fear the FAFSA

December 10, 2013

One of the great things about the holidays is that you get to spend time with family members you don’t otherwise see throughout the year.  For me, that meant seeing my nephew for the first time since he graduated from high school last summer.  I had assumed he had started his freshman year at college this fall, but sadly that was not the case.  Continue reading “Don’t Fear the FAFSA”

The College Fund You Don’t Know You Have

March 14, 2013

I talk to many parents of students approaching college age who fret about having little or nothing saved for college. They know how important a college education is and want their children to be able to go to the school of their choice while graduating with as little debt as possible but at best, they only have a few thousand dollars set aside for college expenses, barely enough for one semester’s worth of meals. The rest of their money is tied up in emergency savings, retirement accounts, and a home with little or no equity. Yet, there is one potential bright spot… Continue reading “The College Fund You Don’t Know You Have”

What Tootsie Rolls and Financial Aid Have in Common

November 23, 2012

Much to the chagrin of dentists everywhere, Tootsie Roll has been a staple of the candy business for a very long time.  This article talks about the Tootsie Roll Company being a very secretive organization.  And we thought it was just the CIA that operates in relative secrecy!  Tootsie Roll doesn’t give tours, they don’t give interviews to analysts and they don’t operate with much transparency.  It’s as if they have some magical mystery formulas that they don’t want the rest of us to know.  That reminds of an email that I saw from a friend at work this week… Continue reading “What Tootsie Rolls and Financial Aid Have in Common”

When It Comes To Your Money, Be Assertive.

August 22, 2012

I was proud of my wife the other day for the way she handled an issue that arose with the children’s school bus.  You see, our high schooler, Rachel, and our middle schooler, David, ride the bus to school together.  They have to walk several blocks down the street to get to their stop. Granted, it’s not the two mile walk I had to make when I was their age, but my wife took issue with them walking so far when there is a stop right on our corner for the elementary school children, who are picked up earlier in the morning.  Rachel and David walk right past it on the way to their stop. There are four other middle school children who ride with them and do the same thing.  There used to be children who lived further down the street and got the bus at the corner further down the road, but those children have grown up and moved away so it is just the six kids from our street who are picked up there now. Well, after watching this for a week and a half and griping about how ridiculous it was for them to walk so far, Susan decided to call the school and ask if they could get the stop changed to our corner. Continue reading “When It Comes To Your Money, Be Assertive.”

Getting Smart About College Costs: Part 3

May 02, 2012

By May, the “long wait” is over for most high school seniors. They’ve heard from the colleges or universities they applied to and have made their final choice. With a September destination locked in, there’s not a whole lot of learning going on in those last weeks of high school. Usually it’s a time for just showing up, having fun and saying goodbye to teachers and friends. Let Senior Week begin! Continue reading “Getting Smart About College Costs: Part 3”

Ten Steps to Funding a College Education

March 30, 2011

So what does college planning look like in the real world?  That’s an excellent question, and since I don’t have a child in college yet, let me share with you what I hope it looks like:

My daughter Rachel is 12-years old.  She will be attending the University of North Carolina (she doesn’t know that yet, but she will—Go Tarheels!).  This year the cost to attend was about $6,000, so her mother and I will plan on paying for her tuition; she’ll be on her own for books, fees, and other expenses.  Her grandpa has already contributed $6,000 toward his granddaughter’s education, so we figure we’ll need to save another $280 a month to meet our goal. Continue reading “Ten Steps to Funding a College Education”

Financial Planning: Paying for College

March 16, 2011

In last week’s blog entry I discussed some of the tax-free ways to save for education.  If you are able to save enough to fully pay for a child’s education then I tip my cap to you because that is an impressive feat.  Unfortunately, for most parents the amount they are able to save will only cover a portion (and in my case a small portion) of the full cost of education, so in this week’s blog entry I’ll focus on the next pillar of college planning known as (imagine the thunderous voice of Zeus as you read) FINANCIAL AID. Continue reading “Financial Planning: Paying for College”