Aaaahhh California! Endless beaches and sunny days, the Golden Gate Bridge, the Santa Monica Pier, skiing in Tahoe, fine wines in Napa, movie stars, palm trees, little dogs and giant sunglasses.
But what about the California 529?
There is bad news and good news about 529 plans in California.
First, the bad news.
No State Tax Deduction for 529s in California
If you’ve read “Top 529 Plans,” you may have noticed the glaring omission of California on the list of states where 529 plan contributions are tax deductible. That’s right: California residents cannot deduct the contributions they make to their children’s (or anyone’s) California 529 plan. Said another way, if you are a California resident, the money you put into the 529 plan each year is not tax-deductible.
Hella uncool, right?
But that point is very important to note as you research 529 college savings plans. It means you can shop nationally for things like:
Best (lowest) fees. This is extremely important – high fees can seriously eat into your investment over time. You should be paying below 1% annually.
A portfolio mix that suits your investment goals and profile, meaning either aggressive, moderate or conservative. You can also elect a portfolio that is age-based, which means the investments start off aggressive and then get more conservative as your child nears college-age, in order to protect principal (I love these!). If you need help identifying your investment profile (it’s important to know), you may wish to subscribe to Level 3 of our free weekly email series (it’s fun!).
Top-rated customer service
User-friendly website (also a nice thing to have, since you may be checking on the performance of your kids’ portfolios fairly often. Or that could just be me…)
Now the good news!
California 529 Plans: From Strong to Stronger
California’s college savings plan is called the “ScholarShare” program. Earlier in 2011, the state board that oversees ScholarShare selected TIAA-CREF, which is a large manager of retirement accounts and also 529 plans for some other states, to take over management of the program from Fidelity. The actual hand-over is due to take place in November, 2011.
According to a press release, the change should result in two positives for participants in the ScholarShare program:
Lower overall fees.
A wider variety of investment options. Currently, under Fidelity, the California 529 allows for investments within Fidelity’s portfolio only. But when the account moves to TIAA-CREF, they will allow you to also choose from TIAA-CREF, T. Rowe Price, Pimco and Dimensional Fund.
And as far as investments are concerned, it’s always nice to have some options to choose from – especially when you’re choosing from such a strong set.
So if you’re looking for 529 plans in California, you’ve got some shopping to do. Your main job will be to watch out in November to see how low the fees go on TIAA-CREF’s new ScholarShare’s new option, and compare them to other plans available nation-wide. Why? Again, because you don’t get a tax break by staying in-state, you might as well shop around to find the best of all the features listed above (especially the lowest fees).
Now grab your giant sunglasses, toss your dinky dog in a bag, and get a move on!
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How to Pick a Mutual Fund or Stock: Spexy Lady’s 5 Easy Steps (2)
By Rosanne Hart “The Spexy Lady” | Wednesday December 7, 2011
For most of this year, I have to admit, I’ve been a Dramamine queen, as this stock market has literally been a wild roller coaster ride. And rest assured, Spexy Lady’s roller coaster days have long passed! In a climate like this, it’s time for some straightforward tips on how to pick a mutual fund or stock.
For those who’ve hung in by their pedicured toe-nails, the market has soared in the last several weeks, logging some huge gains for socking away in our Manolo Money Fund – those leopard Manolos are definitely on my buy list! But for the year-to-date, many of us may be barely even, or perhaps behind, depending on what we owned.
2012 is just around the corner! What now? How do we get ahead next year, make up for last year, or just get in the game? How do you pick a mutual fund or stock without losing your mind — or your stomach?
Here’s a simple way to start: Spexy Lady’s 5 Easy Tips for How to Pick Mutual Funds and Stocks*
1. Log in. Log into one of the easy-to-use financial websites like Yahoo Finance, or Fidelity and type in either the stock symbol, mutual fund symbol, or company you might want to invest in. If you don’t know the symbol, “Google” the company, i.e. “Stock symbol for McDonalds.”
2. Check the charts. When picking a mutual fund or stock, Spexy Lady clicks on Fidelity (it’s so easy), then clicks on the “Research” tab. Type in MCD (who doesn’t love McDonald’s fries??) A new page comes up, and she clicks on “Charts” (on the left). We see how the stock did this year, and over the last 3 years and 5 years. If it held up through the worst of times—2008, May 2010, and this September and October—that’s a good sign. Since we love color, the charts show us in shades of green, blue, orange, lavender how MCD did compared with the Dow, the S&P 500, and even other stocks in its Industry. We click the box for all three. We like what we see! Next, compare MCD with its competitors (Wendy’s, Sonic etc.) We type in their symbols too. MCD did very well!
3. Stick with dividends. One way to pick a mutual fund or stock in such volatile times, is to look for those strong companies that pay dividends. Both Yahoo Finance and Fidelity have up-to-date information on the dividend yield of stocks and mutual funds. The yield is the percentage that
the company pays out annually, monthly or quarterly to its investors. A yield of 2% on $1000 investment would be roughly $20. To find McDonald’s dividend yield, we go to Fidelity, type in MCD, and click on “Research.” Go to “Earnings and Dividends” seen on the left column. Click on the Dividend tab. Scroll down to find the yield. Nice! Over 2.5% (a/o 11/30/11) Better than my CD! Check how long they have been doing this – some pay dividends for awhile, then biz gets bad, and away goes the dividend check. MCD has been paying dividends consistently. Good news. Under “Dividends,” look at growth. We like companies that pay more dividends every year. Over 5 years MCD has had strong growth (over 20%, a/o 11/30/11)
4. Check analyst opinions. The big wigs on Wall Street are trained to know their stuff, and have info those of us at home don’t have. We click on “Analyst Opinions” on Yahoo Finance or on Fidelity, for MCD under the Research section. Yahoo’s list of pros give MCD a “2” on a scale of 1 (buy) to 5 (sell). A good sign.
5. Read Morningstar. Many people go to Morningstar first for mutual fund advice, to screen funds, and to find stock picks, however, SL’s experience has been that this score should be just one of several factors taken into consideration. Information may not be the most current, but if you want to give it a whirl, go to Morningstar’s website, type in MCD. A page pops up, and as of 12/3/11, it gets 3 stars out of 5 (best). The info above might suggest a better score. Go to “Charts” on Morningstar. Click on comparative stocks—YUM Brands, Sonic, Wendy’s, etc. Here we find YUM has done better than MCD over the 3-year and 5-year marks, but not the year-to-date or 1 year period. MCD has outdone ‘em all year-to-date and for one year.
There are other important factors to consider as well, but to avoid putting you to sleep, let’s start with that.
I like to begin with the end in mind…how much do I want to peel off at the end of the year, or when my investments are in the green to land those Manolos in my closet? Or more importantly, how much does my portfolio need to grow over time so I never run out of Manolos?
*Disclaimer: For professional financial advice, you should consult a licensed financial expert, such as a Certified Financial Planner, or Registered Investment Advisor. Spexy Lady’s recommendations and opinions are her own, designed to manifest her Manolo lifestyle.
A small-town Nebraska girl, Rosanne Hart graduated with a BS in Journalism from Kansas State University. At the age of 30, with a $1000 line of credit, she founded a national fashion/beauty PR/Ad agency, The Hart Agency, Inc., in Dallas. Despite her initial inability to balance a checkbook, and having flunked college accounting, she pulled it together and built The Hart Agency into a $1.5M agency, with offices in New York and Dallas, handling fashion clients and Fortune 500 accounts. An advocate for women-owned businesses, she is a founding member of The Texas Women’s Venture Fund, the Dallas Chapter of the National Association of Women Business Owners, and mentor to young women.
Her two sons keep her humble. She writes a blog on money matters under her alter-ego Spexy Lady and says outrageous things on Twitter: @thespexylady.
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A Maryland 529 plan, also called the Maryland College Savings Plan, can be a great way for Maryland residents to save for their children’s college education for two important reasons.
1) Maryland residents can deduct their 529 plan contributions from their state income taxes, as long as the plan they elect is sponsored in Maryland (the Maryland College Savings Plan is).
2) Maryland’s college 529 was rated a “Top” plan by Morningstar (a leading financial expert), in both 2010 and 2011.
Considering that the team at Morningstar analyzed between 50 and 60 plans and only chose 5 in 2010 and 6 in 2011 for the “Top” rating, that’s quite impressive. Even more important are the factors upon which the team based their choices (you should consider these factors too):
Quality of the plan’s underlying investment options
Performance of those options
Managers’ skill
Costs/fees
Stewardship practices
I’m Planning to Switch to A Maryland 529 Plan for Our Kids
On a personal note, we just moved across the country from California to Maryland, and I have decided to roll our kids’ California-based 529 plans over into a Maryland 529 as soon as we have a permanent address.
…Shouldn’t I Shop Nationwide for a 529 Plan?
Maybe, but maybe not… A good general rule that I’ve learned is, (which I mention in the FRx article Top 529 Plans: How to Choose the Best College Savings Plan), it’s likely that the money you’ll save via your tax deduction will overcome any differences in higher fees charged by the plans offered in your home state.
So once we’re officially Maryland residents, I’ll be making the switch so we can get the state tax write-off. Remember, this is not official advice, I’m just sharing what I plan to do for our family. You need to decide what’s right for yours.
How Much is the Maryland 529 Tax Write-off?
The deduction is up to $2,500 per beneficiary (typically the child) for each account holder (typically one of the parents). If an account holder (parent) contributes money on behalf of more than one beneficiary (child) he or she is able to deduct up to $2,500 per beneficiary.
If you’re a couple filing jointly, each of you may deduct up to $2,500 per beneficiary, as long as the $2,500 contributions are going into different accounts. In other words, if both parents want to deduct, you should each open an account for each child. Here’s an example to clarify.
Let’s say you are a couple that files taxes jointly and that you have two children. To maximize your Maryland state tax deductions, each parent should open an account for each child, for a total of four accounts. Each account will qualify for up to $2,500 in tax deductions, for a total of $10,000 in deductions each year.
General Rules for 529 Maryland Plans
Who is allowed to contribute?
Anyone can contribute to Maryland 529 plans! Once the fund is set up, simply obtain the instructions for contributing to the fund from the institution where you set up the plan. Then you can send them along to whoever might be interested (remember: the more, the merrier!).
Who maintains control of the money?
When you establish a 529 plan, you become the owner of the plan. You control the money in the account and establish a “beneficiary.” The beneficiary is the person who will use the money to go to college or vocational school. Typically this relationship is a parent-child one, but it does not have to be. It can be a grandparent – grandchild, aunt – niece relationship or whatever is appropriate to the situation.
Where can a student use Maryland 529 funds?
As long as the funds are used for qualified education expenses, students can use the funds wherever he or she decides to attend college. That can include in-state, out-of-state, private or public colleges, 2 or 4-year institutions, vocational colleges, and a growing number of international institutions as well.
What happens if I want to change 529 plans?
If you look around and find a 529 plan that better suits your investment goals, you can switch. In fact, you are allowed change plans as often as once each year.
What if a Maryland 529 plan beneficiary (the student) earns some sort of scholarship?
That would be fantastic! If this happens, there are some options to choose from. You could decide to withdraw the money from the 529 account without paying a penalty, but you’ll get taxed on any earnings. Another option is to transfer the funds to another child/beneficiary, if you have one. Or, you could keep the money in the 529 account until another option becomes available. Laws and circumstances do change a fair amount. You can never be sure about what changes are coming and how these could offer you lower fees, penalties, taxes and so on.
What if my child (the beneficiary) decides to put off college until a later date?
This may be tough on you, but from a money perspective, you need not worry too much. There are no time limits as to when the Maryland 529 funds must be spent.
But what if college is not in the picture for my child after all?
You can move the funds to a different beneficiary.
How about income restrictions?
No worries here. There are no income limitations on who may contribute to a 529 in Maryland – this is particularly great for our family since we’re in the entrepreneurial space, which means our income fluctuates.
But what if I’m not quite sure yet? Should I talk with a CFP or a CPA?
It’s always safe and savvy to talk through your financial plans and goals with a Certified Financial Planner (CFP) or a Certified Public Accountant (CPA) to ensure you have a solid understanding of any type of college savings plan you decide to setting up.
Happy investing!
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Investors in the Stock Market: Patience is a Virtue!
By Rosanne Hart “The Spexy Lady” | Monday October 17, 2011
If you’re investing in the stock market, you may not know this, but you can get paid to wait.
It took me some time to learn this because I would hardly be called a patient person. Somehow, Spexy Lady was doing something else—perhaps shoe shopping—and didn’t get the memo titled “Patience is a virtue.” But being the hard-headed redhead that she is, Spexy Lady has had to suck it up and BE PATIENT, lest she lose her entire Manolo Money Fund to the high-roller math mavericks on Wall Street.
And Math Mavericks they are! Here’s a little secret… 98 percent of the stock market is controlled not by discretionary decision-making, but by computers. Tech-wizards with genius IQs compute endless algorithms that make my head spin like that scary scene from “The Exorcist.”
What’s a Manolo Maven like moi to do when there seems no end in sight to the latest dizzying stock market gyrations? She does what any smart shopper would do. She shops the sales! And she never goes alone, since she might be inclined to buy something that doesn’t “fit,” costs too much, or simply just isn’t a good buy.
Spexy Lady’s shopping buddy is her very shrewd, very savvy financial advisor, who’s worth her weight in gold when it comes to investing and shopping Wall Street On Sale. It’s hard enough for the experts to navigate the shark-infested Wall Street waters these days, let alone trying to do it on your own!
Spexy Lady’s first bit of wisdom: if you don’t know what you’re doing, don’t do it. Simple enough.
Spexy Lady’s second bit of wisdom: if you want to do something, get good advice – whether you call up those smart people at places like Fidelity, or Chuck at Schwab, or you sign on with a financial advisory firm that is fairly fee-based. And not before you’ve interviewed, in person, at least half a dozen firms, asked tough questions, and checked ‘em out as closely as you would a nanny for your precious babies.
Spexy Lady’s third bit of wisdom: Take a few lessons from CNBC’s Mad Money expert, Jim Cramer. Buy America! What a thought! Consider purchasing stock in strong, healthy U.S.-based companies that pay dividends in the 3% and up range.
While your picks are riding the Wall Street Roller Coaster, they’ll be paying you to wait out the storm with a nice dividend check. And that’s the kind of waiting Spexy Lady likes — getting paid to wait. Be patient, don’t put all your eggs in one stock-basket, and ease in knowing it could well be a couple of years or more before the skies clear.
Parting thoughts: Keep some powder (not face powder) dry to snatch up some bargains, and pad that Manolo Fund for at least a year’s worth of income to insure you’ll never run out of Manolos.
For help on what to put on that stock shopping list, check out “Mad Money” daily at 5 p.m. Central Time on CNBC, or ask your advisor, for starters.
A small-town Nebraska girl, Rosanne Hart graduated with a BS in Journalism from Kansas State University. At the age of 30, with a $1000 line of credit, she founded a national fashion/beauty PR/Ad agency, The Hart Agency, Inc., in Dallas. Despite her initial inability to balance a checkbook, and having flunked college accounting, she pulled it together and built The Hart Agency into a $1.5M agency, with offices in New York and Dallas, handling fashion clients and Fortune 500 accounts. An advocate for women-owned businesses, she is a founding member of The Texas Women’s Venture Fund, the Dallas Chapter of the National Association of Women Business Owners, and mentor to young women.
Her two sons keep her humble. She writes a blog on money matters under her alter-ego Spexy Lady and says outrageous things on Twitter: @thespexylady.
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Michigan 529 Plans: 2 Compelling Reasons to Invest (2)
By Wendy Mihm | August 11, 2011
A Michigan 529 plan, also known as a Michigan college savings plan, can be a great way for Michigan residents to save for their children’s college education for two key reasons.
1) Michigan residents can deduct their 529 plan contributions from their state income taxes, as long as the plan they elect is sponsored in Michigan.
2) Michigan’s direct-sold 529 plan was ranked by the popular magazine Kiplinger’s Personal Finance among the nation’s 5 best 529 plans, particularly for conservative investors.
Exactly what does that mean?
Well, Kiplinger’s likes the Michigan Education Savings Program, or MESP, for two reasons: it has low fees (0.35% annually), and it’s uniquely well suited for families who are wary of risking their college funds in the stock market.
The MESP, which is run by TIAA-CREF Tuition Financing, Inc, has a built-in savings option, which guarantees principal and sets a minimum yearly interest rate. When you choose that particular option, you’re not charged an annual fee at all.
If you’re looking for something slightly different, you can also find portfolios consisting of TIAA-CREF mutual funds, which are weighed more toward bond funds than most other 529-plan offerings. Those options charge the MESP’s low annual fee of 0.35%.
The important thing to keep in mind for all conservative investment strategies is the trade-off between security and performance. Generally when you receive things like guaranteed principal and minimum yearly interest rates, you are also likely foregoing the potential for greater rewards. In short: a tolerance for exposure to greater risk typically allows for more potential to earn greater rewards. But… it also may not allow you to sleep at night – you just have to know what kind of investor you are!
Who controls the funds?
When you establish a 529 plan, you become the owner or the “custodian” of the plan. You control the money in the account and establish a “beneficiary.” The beneficiary is the person who will use the money to go to college or vocational school. Typically this relationship is a parent-child one, but it does not have to be! It can be a grandparent – grandchild, aunt – niece relationship or whatever is appropriate to the situation
Who is allowed to contribute?
Anyone can contribute to Michigan 529 plans! Once you set up the fund, just get the instructions for contributing to the fund from the institution where you set up the fund (they will be simple). Then send them along to whoever might be interested (the more people the better).
Where can a student use Michigan 529 funds?
As long as the funds are used for qualified education expenses, students can use the funds wherever he or she decides to attend college. That can include in-state, out-of-state, private or public colleges, 2 or 4-year institutions, vocational colleges, and a growing number of international institutions as well.
What if my student (the beneficiary) earns an academic or athletic scholarship?
First of all, NICELY DONE! Now, there are some options available. You could choose to withdraw the funds from the 529 account without paying a penalty, but you would be taxed on any earnings. Another option would be to transfer the funds to a different beneficiary. Finally, you could keep the funds in the 529 account until another option was to become available. Laws and circumstances change a lot. You never know what may lie ahead that could offer you the best option to minimize fees, penalties, taxes and such.
What if the beneficiary decides to delay entrance to college?
It’s hard not to worry when this happens, but from a money perspective you can relax. There are no time limits on when the Michigan 529 funds need to be spent.
But what if I decide that I want to change 529 plans?
If you do more research and locate a 529 plan that suits your investment goals more, you can switch. In fact, you are allowed change plans as often as once each year.
What if my child decides not to go to college at all?
You can move the funds to a beneficiary.
Are there any Income Restrictions for people who want to contribute to Michigan (or any) 529 plan?
Nope. There aren’t any income limitations at all on who can contribute to a 529 plan – princes and paupers alike may participate!
I’m still not sure. Can I consult a CPA or a CFP?
It’s never a bad idea to run your financial plans past a Certified Financial Planner (CFP) or a Certified Public Accountant (CPA) to make sure you completely understand the college savings plan you’re setting up.
In fact, by the winter of 2011, FinancialRx will have a directory of finance professionals in your area who will be ready to help you with just these types of questions.
There now, won’t that be nice?
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If you live in Illinois, rejoice! Illinois 529 plans are a great way to save for college for 2 really important reasons.
Reason 1: Illinois Offers a State Income Tax Deduction for 529 Contributions
If you live in the state of Illinois and you elect an Illinois 529 plan, your contributions to the plan are tax deductible up to $10,000 a year for individuals, or $20,000 per year for married taxpayers who file a joint return.
However, it’s important to note that if you later decide to roll that Illinois-sponsored plan over to a different 529 plan sponsored by another state, you must then report the tax deduction for that year as income.
You should also know that this ability to deduct your 529 contributions does not mean that your child (or whomever the beneficiary may be) must attend college in the state of Illinois! He or she may attend college wherever they are accepted – including a growing number of schools outside the U.S.
Reason 2: Illinois 529 Plans Have Some of the Lowest Fees Around
Illinois also offers the Bright Directions College Savings Program, which is an advisor-sold program managed by Union Bank and trust and offering funds managed by female and minority-owned firms.
Both provide unique offerings and are certainly worthy of exploration by Illinois residents – especially given the state tax write off!
General Rules for Illinois 529 Plans
Where can the money be used?
Again, whether you elect a state-sponsored plan or not (though the state tax write off certainly makes in-state plans compelling for residents), your child can use 529 plan funds for qualified education expenses wherever he or she decides to attend college.
Who owns the money in the 529 plan?
Whoever sets up the 529 plan becomes the owner (or joint owners). That person, or those people, do not have to be the parents. They control the money and they establish a “beneficiary” for whom the money will be used – this person, typically but not always, a child, will be the one who goes to college and uses the money to study.
What if I Want to Switch 529 Plans?
If you find a plan that you like better and you decide to switch, you can. You can switch plans as often as once a year, if you want to.
What if My Child Does Not Go to College?
You can switch the money to another beneficiary.
Who Can Contribute to?
Anyone can contribute to an Illinois 529 plan (or any 529 plan, for that matter)!
What if My Child (the 529 Beneficiary) Gets a Scholarship?
You have a few options. You could take the money out of the 529 plan and you wouldn’t have to pay a penalty, but you would have to pay taxes on the earnings. You could transfer the money to a different beneficiary. Or you could leave the money in the 529 plan and wait for another option to become available – i.e. your circumstances change, laws change, etc.
Are there any Income Restrictions on Contributing to the 529?
There are no income limitations with regard to who may contribute to a 520 plan – you can put money into these plans regardless of how much or how little income you make.
What if my Child (the 529 Beneficiary) Goes to College Later?
There are generally no time limits as to when the money must be spent.
Should I consult a CPA or a CFP About a 529 Plan?
It’s always a good idea to run your financial plans past a Certified Public Accountant (CPA) or a Certified Financial Planner to ensure you have a full understanding of the plan you’re setting up. The FinancialRx Directory, coming in Fall 2011, is a great place to find the right finance pro for you.
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What is CD laddering and how can it help you earn some cash?
As you know, CDs are generally considered a safe place to stash your cash, but they have been pretty frustrating in the past decade, as interest rates have hovered frustratingly close to the zip, zero, bagel mark.
Add to that, the fact that CDs typically require one to lock up funds for 1-5 years for the chance at earning a decent rate of return, and you’ve got a recipe for some pent-up frustration among would-be investors.
But two things about CDs could help ease this frustration and put a little oomph behind this investment vehicle.
Thing 1: Interest rates are likely about to go back up again in the near future, making rates on CDs more attractive. To gain some basic understanding of why, read my guest post on our partner, AboutOne’s blog, called The State of the Rates.
Thing 2: CD laddering can allow you to access some of your funds sooner, while still investing the rest of them in higher-yeild, longer-term CDs.
How CD laddering works
Here’s a super-simple example of how to ladder CDs, using a $5,000 investment. You would divide up your money into 5 equal increments of $1,000, and then invest each $1,000 into 5 different CDs, with the following interest rates and maturity rates (rates are based on what I researched online on 6/8/11):
$1,000 at 1.2% to mature in 1 year
$1,000 at 1.48% to mature in 2 years
$1,000 at 1.75% to mature in 3 years
$1,000 at 2.0 % to mature in 4 years
$1,000 at 2.45% to mature in 5 years
As you can see, you would have access to some principal and some interest of your initial $5,000 every year. At those times, you could decide what to do with the money – either re-invest it in another CD, re-invest it in a more aggressive investment, or spend it on something you need at that time.
The key things to remember about CDs in general are:
Interest is paid upon maturity of the CD, not along the way, like a savings account.
Their earnings are subject to taxation.
If you take your money out of the account before the CD’s maturity date, you will pay a fee that may cut into your principle dollar amount.
CDs are considered to be extremely safe because they are insured by the FDIC in the same way that traditional savings accounts are – that’s why the rates are generally so low – you’re not getting much because you’re not exposed to much risk.
The benefits of a CD laddering strategy
CD ladders are more flexible than tying up all your money into one long-term CD. You might not earn quite as large a return (the returns aren’t large anyway), but you’ll have access to your cash along the way.
On the other hand, if rates increase as time goes buy, you’ll have the flexibility to move your money into where it can earn a better return.
CD laddering just might be a flexible and safe way to earn better returns on your family’s investments – especially now, as interest rates are likely about to rise.
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Top 529 Plans: How to Choose the Best 529 College Savings Plan (3)
By Wendy Mihm | Monday April 25, 2011
Since I wrote the article “The 529 Plan vs. the Coverdell,” I’ve gotten quite a few emails and calls from friends with questions about how to choose the best 529 plan, and the specifics of how the plans work. So I’ve written this simple 2-Rule Guide on how to choose one of the top 529 plans, and then listed some simple facts about how they work.
First, let me say that you are a big rock star getting ready to select a 529 plan in the first place—investing for your child’s college education is a wonderful (and responsible) gift of love. There are a lot of great 529 plans out there, and the only really enormous mistake you could make would be to miss out by not investing in any of them.
Having said that, there are 2 key rules of thumb you can follow today, that will help maximize your kids’ money for college tomorrow.
Rule 1: When Choosing a 529 College Savings Plan, Keep State Tax Deductible Status In Mind.
You can enroll in a 529 plan from any state in the nation, regardless of where you live, regardless of where your child lives, and regardless of where your child ends up going to college. However, if you live in one of the following states or the District of Columbia, where the contributions you make to your child’s 529 plan are tax deductible, it really makes sense to choose a plan within your home state.
Here’s the list of states where 529 plan contributions are tax deductible:
Alabama
Alaska
Arizona
Colorado
Connecticut
D.C.
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas
Louisiana
Maine
Maryland
Michigan
Mississippi
Missouri
Montana
Nebraska
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
Utah
Vermont
Virginia
West Virginia
Wisconsin
Why? Because if your state is listed above, there is a good chance the money you’ll save via your tax deduction will overcome any differences in higher fees charged by the plans offered in your state. But just to be safe, it wouldn’t hurt to have a look at the to plans we’ll show you in the next section.
Rule 2: If You Can’t Write Off Your 529 Contributions, Shop Nationally Based On Lowest Fees.
If you don’t live in one of the states listed above, you can’t deduct your 529 plan contributions. This means you can shop nationally, not just your home state. Your key thing to watch out for are the fees.
There are all sorts of different fees: “management fees,” “maintenance fees,” “annual fees,” whatever the fund chooses to call them, your job is to be aware of them before you sign up for the fund. Why? Because they can really eat into your returns year after year. Over time, these fees can make the difference between a mediocre fund and a great fund. They also tend to vary a lot by state, by broker or by individual fund, so look carefully before you sign up.
Here Is a List of the Best 529 Plans
This is a link to Kiplinger’s Best Plans. I like this particular link because Kiplinger offers their bests in several categories, such as “best for low fees,” “best for overall investment mix,” “best for conservative investors,” etc. Plus it’s linked to phone numbers, in case you want to speak with an actual human.
What If You Change Your Mind About the 529 Plan Later?
You are allowed to transfer your 529 funds to another 529 plan without penalty up to once a year. To do so requires the proper paperwork from both the 529 fund you are leaving and the one you are transferring to.
Can My Child Spend 529 Funds In a Different State or Country?
It doesn’t matter where your 529 fund is established versus what state your child chooses for college. He or she can attend college in any state and spend the funds you saved in your 529 plan. In fact, you child can even attend college in one of hundreds of qualifying foreign colleges as well! As long as your student qualifies for federal financial aid, he or she can use 529 plan funds to pay for approved education expenses without losing any of the tax benefits, as long as the money is spent on appropriate, education-related expenses.
Got more questions? Leave ‘em in the comment section and I’ll either answer them there directly there, or you just might inspire me to write another article on saving money for college.
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If you’re like many people, you count on your employer’s 401k plan to handle your retirement investing. And if you’re really smart, that plan is already set to take advantage of your employer’s matching contribution, if there is one. If you’re not taking advantage of your employer’s matching contributions to your retirement fund, you need to get that set up immediately because it’s one of the biggest (and most ridiculous) mistakes you can make – it’s essentially giving away free money.
Find Out Now, Before It’s Too Late
Using your 401k plan, or other employer-sponsored retirement plan, as a primary vehicle to invest for retirement is perfectly reasonable. But whether it will be enough to fully fund the type of retirement many of us dream of is another question entirely.
You can’t know for sure, but you really should get informed about whether the path you’re currently on is enough, while there’s still time to do something about it. One way you can do so is by using a calculator like the one we link to in our article called “How Much Will I Need to Retire?”
Once you see what the numbers yield, you can sit with your spouse/partner and “Make a Financial Plan.” That will entail talking in detail about what kind of retirement you envision for yourselves, and how much you think that kind of retirement will cost you on an annual basis. Can you pay for your lifestyle on $25,00 per year? $60,000? More? When do you plan to retire? How good is your health? Do you take care of yourselves now? How long do you expect to live? How much do you expect to pay each year in medical bills? Use the life expectancy calculator on our Power Tools and Resources page to make a guesstimate, then multiply the number of years you’ll be retired times your estimated cost of living. That should give you a ballpark estimate of your retirement needs. Now compare that with what you got when you plugged in your current 401k figures into the calculator we recommended up top.
Did you find a gap?
How To Fund The Retirement Gap
If there’s a gap there, read on to learn where you might want to consider investing beyond the 401k to fill that gap so you can fund the retirement you’re envisioning.
Consider Investing In an IRA
Experts typically recommend a couple of places to invest after the employee-sponsored retirement plan. The first is the Roth or traditional IRA. The reason people love the Roth IRA is because of its tax advantages. When you withdraw your money in your retirement years, won’t be taxed on that money, which is a pretty big deal.
The problem is not everyone qualifies. You have to be under a certain income level to participate in a Roth IRA. A quick summary of the income qualifications is as follows: If you’re single or filing separately, you can participate at some level in a Roth IRA if your gross income on your tax return is less than $120,000. If you’re married and you file a joint tax return, you and your spouse can put money into a Roth if your gross income is $177,000 or less. See more details in the table in our article, “Get Started Investing.”
Convert the Traditional IRA to the Roth IRA
Starting in the 2010 tax year, however, there is a work-around to this rule. Congress passed a law that eliminates the restrictions barring anyone who makes more than the caps mentioned above from converting a traditional IRA to a Roth. That means that, even if you don’t qualify for the Roth IRA, you can open a traditional IRA and then convert it to a Roth at the end of the year so that when you retire, you can take the money out tax-free. And you can continue to do this, year after year.
There are different types of traditional IRAs, and these in turn have varying tax advantages – both now versus in the future—and in comparison to the Roth IRA. All of these different types of IRAs and their tax advantages are summarized nicely in a book called “The Boglehead’s Guide to Retirement Panning.” You can also see a fairly lengthy IRA Primer on Smart Money’s website, which will illustrate why the topic is beyond the scope of this article.
But my point is that investing in an IRA can be an outstanding way to fill the gap between your current 401k plan and your retirement dreams. Don’t be put off if the IRA language sounds confusing. If it’s what you want to do, do it! Just figure out if you qualify for a Roth and if so, pick one and do it! If not, read up on the traditional IRAs, pick one, and go! Remember, the biggest mistake you can make is to do nothing because you’re waiting “to feel like you know enough.” If you do that, you’ll be waiting forever. No one knows everything, even the “experts”—markets and investing are uncertain by nature—and if you wait until you have a whole bunch of time to do research, by then you will you no longer have the time to let the market work for you and it will be too late.
Ok, onto the next investment vehicle that experts tend to like: the index fund.
Investing in Index Funds
What is an index fund, anyway? An index fund is a type of mutual fund that tracks to some standard market benchmark like the S&P 500. So let’s back up a second and define a mutual fund. Taken directly from our article “Should I Invest in Mutual Funds?” a mutual fund is:
“…an investment vehicle that pools money from a group of investors and invests it into a group of securities. These securities can be any number of things, such as stocks, bonds, other mutual funds, short-term money market instruments, or sometimes even commodities sold in the marketplace like steel, paper, wool, or precious metals. The money in the mutual fund is managed by a team of professionals who follow the rules of the Securities and Exchange Commission, and who try to achieve the objectives of that particular mutual fund.”
What differentiates an index fund from the more generic category of mutual funds, is that index funds are set to track automatically to some index like the S&P 500, which is a large-firm stock index, or the Russell 3000 index, which tracks the whole stock market. (There are bond market indexes, too, in case you’re wondering). Because index funds track these indexes fairly automatically, they don’t have traditional fund managers. In turn, it generally means that these funds also have lower fees, which can mean more of the fund’s overall returns stay in your pocket (which is a good thing).
Also, because the fund isn’t trading securities all the time – it just buys into its market basket and holds—it’s less likely to incur realized taxable gains that must be distributed to shareholders. For that reason, index funds also tend to be tax-efficient. Woot!
Choose an Index Fund With Low Fees
It sounds really easy to win with these, and it can be. But you can still make one very big mistake, and that is to choose an index fund with high expenses and fees.
Money Magazine tends to like Vanguard and Fidelity. But for an updated list, you can and should check their Money 70 site to see for yourself.
One final thing to consider is diversification. In investing, it almost always pays to diversify rather than put all your money into a single market niche – otherwise known as putting all your eggs into one basket. So when considering which index funds to go for, don’t forget that golden rule.
The bottom line is, if you’re contributing enough to your employer’s 401k plan to achieve the company match, and now you’re exploring ways to fully fund the retirement of your dreams, the IRA and the index fund may be good options to explore. And if you’re exploring these now, while you still have time to let the market work for you, hats off! You’re well on your way to the retirement of your dreams.
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Saving money in an emergency fund can be quite a controversial topic.
Some finance writers are adamant that you should have at least a year’s worth of living expenses saved up. Others think that any more than $1,000 is too intimidating a goal to save for.
And then, one of my favorite finance writers, Liz Pulliam Weston over at MSN Money, makes a compelling argument for a $0 emergency fund! Though I love her logic, I’d caution that it applies to those who are sophisticated in their personal finances, and confident they could stay disciplined in executing her strategy, should a big emergency arise.
Dave Ramsey’s take on the $1,000 emergency fund is that it’s a “Starter Emergency Fund” and that it’s generally for people who are climbing out of credit card debt. His thought is that, should something relatively small happen, like a pipe bursts or your car needs a fairly minor repair, you can use your starter emergency fund to pay for it, rather than piling up more credit card debt. Not bad logic. But it’s also not a solution for a larger emergency, in my opinion.
For example, while we were traveling in Quèbec City back in 2008, my then-toddler daughter suffered a very serious crush injury to her right hand. Long story short, it involved an ambulance ride, a two-week hospital stay, multiple surgeries, and plenty of medical bills that added up quickly. We needed access to more than $10,000 within a few short weeks, to hold the doctors at bay while we fought with the insurance companies over claims written in French.
Fortunately we did have a fairly sizeable emergency fund to turn to, because our insurance company did not kick in its share until a full year later. By the way, if that story is not compelling enough to convince you that you need an emergency fund at all, here are ten more reasons why you need an emergency fund.
The middle of the range, 3-6 months worth of expenses, tends to be the most popular and is quoted at respected sites like Bankrate.com and The Motley Fool.
What is important to remember here is that the emergency fund, like most personal finance tools, is, well, personal. You have to consider your family’s situation, while layering that against the economic climate.
For that reason, I tend to side with Trent over at The Simple Dollar, who established a goal of a 12-month emergency fund for he and his wife. I know, it sounds huge. But hear me out before you flail your arms around and proclaim it to be a ridiculously large goal.
Why a 12-Month Emergency Fund Makes Sense For Our Family
(And May – Or May Not – For Yours)
We calculated 12 months’ worth of very basic living expenses, not how we currently live, which is more comfortably.
Once we established the automatic payments into our account, we forgot about them and didn’t miss the money. Really.
We have already experienced a major emergency (mentioned above) and have seen the value of a large emergency fund pay off.
We have two young children who cannot yet take care of themselves. If money stops coming in, we still need to feed and clothe them.
I have a family member who was recently unemployed for 16 months. I know that if either of our current situations ceases to be lucrative, it could take a long time to get a job.
We do not carry any credit card debt that we should otherwise be paying off.
We are already aggressively paying off our mortgage, which we have refinanced to an historically low rate.
We already contribute as much as we possibly can to our retirement funds each year.
Now, having said that, you should also consider many factors before you decide on the size of your family’s emergency fund. So, here’s a list to help you along.
Factors To Consider in Deciding the Size of Your Emergency Fund
If you were to lose your job today, how long do you think it would take you to find work?
Do you have children? If so, how many and how old or young are they? How long will they be in your care? Do they have special needs?
Do you carry credit card debt that you should prioritize before putting larger contributions into an emergency fund?
Have you contributed enough into your and your spouse’s employer’s retirement plans in order to earn the company match? If not, you should prioritize that!
Do you have a good understanding of your family’s actual monthly living expenses? What can you eliminate to minimize these if you were to lose a critical source of income?
Again, our family went with the year’s worth of expenses because of what we’ve already been through, what we’ve seen relatives go through in trying hard to find a job, the reality of today’s economy, and our current financial situation.
Consider these same factors and the list above as you establish your family’s emergency fund because, although life is generally good, it’s often unpredictable!
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Maybe you’ve heard the term “mutual funds” tossed around and wondered whether you should be in them. Or perhaps you’re curious about these financial instruments because the money in your savings account just doesn’t seem to be working hard enough for you and you’re looking for an alternative.
Whatever the reason, it makes sense to consider the mutual fund for several reasons, so we’ll cover them here. Then you can make an informed decision for yourself.
What is a mutual fund?
A mutual fund is an investment vehicle that pools money from a group of investors and invests it into a group of securities. These securities can be any number of things, such as stocks, bonds, other mutual funds, short-term money market instruments, or sometimes even commodities sold in the marketplace like steel, paper, wool, or precious metals. The money in the mutual fund is managed by a team of professionals who follow the rules of the Securities and Exchange Commission, and who try to achieve the objectives of that particular mutual fund.
Why consider a mutual fund?
Ok, so let’s talk about why you might want to put your money into mutual funds. Here is a list of what advantages mutual funds have over keeping your money in, say, a typical savings account or stuffing it into your sock drawer.
Mutual funds are diverse.
Unlike trying to pick specific stocks or putting all your money into a bond fund or a savings account, a mutual fund invests your money into a big pot. That pot includes lots of different companies, often across varying industries, sometimes across different countries. That means if one company’s stock goes down, another one may go up at the same time, thereby protecting your investment. That’s the beauty of diversification.
Mutual funds are managed by professionals.
You pay a fee to have your money managed by a team of professionals who understands key indicators and warning signals in the marketplace. These professionals are not perfect, but the assumption is that they have more time and expertise than a typical layperson to make decisions that will earn good returns on your investment.
Mutual fund accounts let you start small, are easy to use and flexible.
With most mutual funds, you are allowed to start with a relatively small initial deposit. Then, you can set up automatic transfers from your regular checking account. That way you can set it and forget it! Or, if you’re like me and you like to nose around in your accounts to see how they’re doing, you can do that too.
Mutual funds offer choice.
Most mutual fund management companies (these are often banks or other financial institutions) offer a great selection of mutual funds for you to invest in. You can match these to your financial risk profile (i.e. are you comfortable with the possibility of losing a decent chunk of change in exchange for the possibility of earning great returns – or would you rather play it safer and have lesser returns?), your sense of ethics, your preference for domestic or foreign investments, and so on.
Mutual funds offer the potential for good returns on your investment.
As you may have experienced, interest rates at banks are low right now. But because mutual funds take on more risk (the investments are not insured by the FDIC, like your deposits in a savings account at most banks are), the potential for much higher returns are there. In researching returns on mutual funds for this article, I saw 1-year returns in the range of anywhere between 6% to 39% on any given mutual fund.
If you ask me, that’s a lot better than those nice-smelling sachets, which is pretty much the best thing I ever find in my sock drawer. Even if they do sometimes smell like lavender.
Oh, and I also found this little video called – wait for it – “How Mutual Funds Work.” I thought it might be a helpful addition to the above to fill in any lingering gaps.
So check it out, decide for yourself and good luck!
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If you’re reading this article to help you decide between a 529 vs a Coverdell education savings plan, hooray for you! In my opinion, you’re roughly three-quarters of the way toward investing in your child’s future. My belief is that just investing somewhere – anywhere – is the most important part. Much more important than the way you invest.
Having said that, it’s definitely still worthwhile to research which type of plan fits your family’s financial profile best. Both the 529 plan and the Coverdell Education Savings Plan are ways to set aside money for your child’s education. Both have certain advantages. Depending on your income level and other circumstances, one might be better for your family than the other.
Below are some key attributes of each plan to consider before you choose one. Have a look.
529 College Savings Plan
College only. Note that the 529 is called a College Savings Plan. That’s because the money you stash away there can only be used for college. (In this context, the term ‘college’ includes both 2-year and 4-year institutions.) That means you cannot use it to pay for private elementary, middle school or high school. The money you put into a 529 plan can be used to pay for typical college expenses, including tuition, room, board, books, etc.
No income restrictions. Anyone can contribute to a 529 College Savings Plan, regardless of income level or net worth.
Contribution limits. A 529 College Savings Plan allows for maximum contributions anywhere between $100,000 and $350,000, depending on the state you live in. This limit is considerably higher than the limit set by a Coverdell account, which means you can save a lot more in a given year and over time.
Guardian controlled. This feature is key for many parents because the money in the 529 plan is controlled by the guardian, which is often the parent. This allows the parents to oversee their child’s education funds and expenses, rather than handing over a relatively large sum of money – and all the decisions that go with it—to such a young adult.
Tax advantages. Contributions to a 529 College Savings Plan are made with after-tax dollars, but as the funds in the 529 Plan grow, they will not be taxed. Then, when your student enters college and begins spending the money, it will not be taxed at that time either, as long as the money is spent on appropriate college-related expenses. Also, if you live in certain states or the District of Columbia, your contributions to a 529 plan can be deducted from your state taxes. See the FinancialRx article called Top 529 Plans: How To Choose the Best 529 College Savings Plan for a complete list of states that allow state tax deductions for 529 plans.
Coverdell Education Savings Account
Primary Education or College. Unlike a 529 plan, you can use money in a Coverdell account for private primary school or college. Yes, this includes preschool and kindergarten, along with elementary, middle and high school.
Investment flexibility. Compared with a 529 plan, you will typically find more options to invest your money in, plus you can reallocate your funds more frequently if you want to. With a Coverdell plan, you can move your money around as many times as you want to, whereas with a 529 Plan you are limited to reallocation once per year.
Contribution limits. There is a $2,000 annual contribution cap on the Coverdell Education Savings Account. This is something to consider very seriously if your primary goal is to save aggressively for college.
Income restrictions. The Coverdell Education Savings Account flat out eliminates families over certain income levels from participating, so make note of this requirement immediately. You may not even have a choice to make if you are a high wage- earner. If you are a single parent and and earn over $95,000 per year, you are excluded from the Coverdell. If you are married and jointly earn over $190,000 you cannot participate in the Coverdell plan.
I hope these facts help to clarify the issue of the 529 vs Coverdell in saving for your child’s education. But more importantly, the real take away is not which plan you choose, but that you choose to start saving for your child’s education at all.
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2008 – 2010 were incredibly difficult economic years. Maybe you and/or your spouse lost your jobs. Perhaps you had a business fail, or lost your health insurance or other benefits. Or maybe you watched 40% of the value of your investment portfolios evaporate into thin air.
Whatever your economic status, its unlikely you escaped these last few years unscathed by the Great Recession. If your family is anything like ours, you are still recovering.
Economists are projecting 2011 to be a sluggish year for employment growth, predicting it to hover in the 9.5% range throughout the year. However a panel of 51 economists from the National Association of Business Economics predicted recently (in Q3 of 2010) that, though the US economic recovery was slow, there was little to indicate we were headed into the dreaded “double dip recession.” It’s not the best news, but there is light at the end of the tunnel. These same economists expect things will pick up by the end of 2011.
So what does that mean for the rest of us? It means it’s time for us to do the responsible thing: get back up on our horses and start riding again.
It’s Time to Get Your Finances Back on Track
At FinancialRx, we are all about leading a happy, healthy financial life. One of the ways we advocate for this is to remind our readers that it takes time to build wealth. Rarely is this message more important than when things go badly.
I had to remind myself of this last year when I saw that my daughter’s 529 plan had lost more than 35% of its value. I was so discouraged that I was tempted, very tempted, to discontinue our automatic monthly contributions. And I write a financial blog for a living! But this would have been one of the dumbest and least responsible things I could have done, because I would have missed buying into the market while the prices were low.
Since that time, her account has recovered almost completely.
With that lesson in mind, here are 5 key strategies you can implement now to clear your financial roadblocks and get your finances back on track.
1. Conduct an economic “perception versus reality” check.
Money is an emotional subject and many of us can get caught up in how it feels to have suffered a financial setback. Economists generally agree that the damage is done and we are slowly headed toward a recovery. This means that you must assess the real financial damage that your family has suffered. Then you must detach yourself from it emotionally and decide to address it head-on with a plan.
2. Assess your largest financial loss and attack that first.
Were or are you unemployed? Did you lose your home to foreclosure? Did you lose your health insurance? If you suffered more than one of these losses, decide which of them is having the greatest financial impact on your family and go after that first. If it is unemployment, you must go after this with the most gusto, and you must consider fresh ideas, such as relocation, part-time options, a new career path, job-sharing, consulting or other self-employment options. Things are starting to shake loose in this arena – a relative of mine who lives in Michigan was unemployed for 18 months just received two plumb job offers! It really can happen.
However, if you lose focus on the most important goal ahead of you, it is easy to become overwhelmed and not accomplish progress on any of them. Pick one goal and go after it with everything you’ve got. Things tend to pick up in the new year, when everyone has renewed focus and energy, including you.
3. Resist the urge to fund your expenses with credit cards.
I cannot stress this enough. Credit cards will only get you into a whole new heap of trouble. I really don’t have to lecture you on this, do I?
4. Start saving and investing again.
It sounds counter-intuitive and it’s a little scary, but the best time to invest in the market is often when it’s down. Why? Because part of the definition of a “down market” is that stock prices are low. And you want to buy things when prices are low because you can get more of whatever it is you’re buying. But I, just like you, often have a hard time with this because when things are low, it seems like they will get lower. And sometimes they will. But often they get higher again. That’s why you want to get right back on your saving and investing horses and start riding again. If you had a 401k plan or an IRA or a Roth IRA, it’s time to start investing again. If you had an emergency savings fund it’s time to start contributing to it again – if you didn’t, it’s time to start one.
5. Automate, automate, automate your saving and investment contributions.
Don’t rely on your will power and memory to save and invest. Automate! All your contributions to your retirement investments, your children’s education funds, your emergency savings fund and the like should be automated so you never have to think about them.
Plus, once these contributions are set up as automatic withdraws from your checking account, you won’t even miss them.
The Great Recession was hard on all of us. However your family struggled—and continues to struggle—I wish you the best for a happy, healthy financial recovery.
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You are a responsible adult human. You need an emergency fund. Don’t kid yourself.
Why? Here’s a list of ten real-life things that could happen to anyone – even you – at any time. And if you don’t have the cash to deal with them, you could be left in a very bad position, which we’ll talk about in just a sec.
Reasons You Could Need an Emergency Fund
You or your spouse/partner could lose your job. Or you both could. With a national unemployment rate of 9% as of October 2010, this is a very real concern.
An unexpected home repair could come out of the blue. Our next-door neighbors just had a gigantic sewer malfunction that resulted in a 9-day project in front of their house, complete with those mini bulldozers. The bill? More than $12,000. Yes, really.
Your car could just up and quit.
You could get hit with an unexpected tax bill.
God forbid, a loved one could pass away.
A parent or other member of the family could become ill and require at-home care.
You or your spouse/partner could be required to move as a result of a job opportunity, leaving the other one temporarily unemployed.
The ultrasound technician could announce that the bump in your belly is actually twins! Or triplets.
To cut costs in this tough economy, your (or your spouse/partner’s) employer could eliminate your insurance benefits, leaving you on your own to pay for health insurance for your whole family.
A spiral of several of these events could pile up, one after the other. You know how they say bad things sometimes happen in threes? I’ve had it happen myself.
What Happens If You Don’t Have an Emergency Fund
Now, let’s talk about what happens if an emergency rears its ugly head and you don’t have the cash to deal with it. You are left, child-like, to ask Mom and Dad, or worse, credit card companies to bail you out.
Here’s a scenario to illustrate the point.
The transmission has just died in your minivan and you do not have another form of transportation to get the kids to school and you to work. Fortunately, your husband has a car that he takes to work so he is set. But without a reliable form of transportation that will fit one car seat and one booster seat, and that can get you to work every day, you are in some deep doo doo. (But not as much as my next-door neighbors were! Blah!)
You have identified a used Dodge Caravan for $6,500 that would work for your family, but you don’t have any money saved up at all. It will have to go on a credit card.
Let’s say your best card has an interest rate of 12% and you make $200 payments toward the card each month. Sounds reasonable, right? Wrong.
Do you realize that with this plan you would actually pay the original $6,500 price + $3,175 in interest, which equals $9,675 for a used van? And that it would take you 12 years and 9 months to pay it off? The van will probably be dead by the time you pay it off.
You could have avoided all this if you had saved some money in an emergency fund.
I’m just sayin.’
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Comments for
California 529
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The Maryland 529
Investors in the Stock Market: Patience is a Virtue!
Michigan 529 Plans: 2 Compelling Reasons to Invest
Illinois 529
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Investing For Retirement: Beyond the 401K
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Should I Invest In Mutual Funds?
529 vs Coverdell
Get Your Finances Back on Track
Why You Need an Emergency Fund
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