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hcjackname:
Heath Jacksonabout me:
I am kind of a financial nerd.
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Recent Responses by hcjack
Posted by hcjack
1 Response
One of Two People:
Most people are problem finders. Few are solution finders. If many of your sentences start with, "The Problem is," you are likely the former! - Heath Jackson
Posted Feb 07, 2008
hcjack
2 Responses
Want a Hot Financial Tip?
Wouldn’t it have been nice to have been smart enough to pick up Qualcomm as a hot tip in 1999 to rack in a mere 1000% return before the turn of the new century?
Posted Feb 07, 2008
6 Responses
529 Plan - The Worst Thing You Can Do for Your Child
Ok, I realize I am being a bit harsh. In fact, I love the 529 plan. I discuss and recommend them for my clients on a daily basis. However, 529 plans are becoming so popular today that parents are starting to forgo their Retirement plans, emergency funds, and other important goals, just to help their children through school.
A 529 plan is a college (and only college) savings account that is established by Section 529 in the tax code. It basically allows you to invest after-tax dollars in a fund that grows tax deferred and allows you to take the money free from taxes if used for qualified post-high school education costs.
It is a great deal if you are almost 100% sure that it will get used.
Parents: please get started saving for college right away, if you have the resources. By resources, I mean that you have done or are in the process of doing the following:
1. Have 3-6 months of living expenses in a liquid savings account
2. Have paid off all high interest credit cards
3. Are on track to have enough money invested for your retirement
4. Have a proper life insurance and disability plan in place
5. Have health insurance that will allow you to cover any and all medical expenses with your cash flow or emergency fund.
6. Have worked with an estate planning attorney to implement your wills, Powers of attorneys, and Living Will.
If you are saving for your kid's education before taking care of these necessities, you are taking a huge risk. There are so many opportunities to get funding for college. There are student loans, other financial aid, they can work during college. Who knows, your kids may not even go to college.
The next time you see your children; ask them the following question to see what the answer will be:
"Would you rather pay for your own college and later visit your parents in their summer home in the Hamptons, or we can pay your college expenses and later move in with you.
Easy answer. Take care of yourselves first.
Posted Feb 07, 2008
