- Does a 529 Plan Earn Interest?
Unlike a traditional savings account that earns interest, a 529 plan grows based on the performance of the investments you select within the plan. Most 529 plans offer a range of investment options, such as mutual funds or age-based portfolios, which are designed to grow over time through market appreciation. So while the account itself… read more…
- What Are Tax-Free Distributions From 529 Plans?
A 529 plan is a tax-advantaged savings account designed to help families save for future education costs. Withdrawing money, also called a distribution, from a 529 plan for qualified education expenses, such as tuition, fees, books, and room and board, is tax-free. Neither the federal government, nor most states, will tax the earnings on these withdrawals.… read more…
- Financial Planning vs. Retirement Planning
Financial planning and retirement planning are both important parts of managing your financial health. Financial planning is a broad approach encompassing budgeting, saving, investing, tax planning and risk management to achieve various life goals. Retirement planning specifically focuses on preparing financially for life after work, with the aim of securing a steady income and financial… read more…
- Who Maintains Control Over a 529 Plan’s Assets?
A 529 plan is a popular tool for saving for college expenses. When it comes to who maintains control over the 529 plan’s assets, in most cases, it’s the account owner. This is often a parent or grandparent. The owners also has the ability to make investment choices and manage withdrawals. The beneficiary, typically the… read more…
- 10 Free Tools to Help Build Your Financial Plan
Taking control of your finances can yield great rewards without breaking the bank. Free personal finance tools, from AI chatbots to printable worksheets, can help you budget, track expenses, manage investments, set goals and monitor progress. These no-cost resources empower informed decisions and lay the groundwork for a strong financial future. For deeper insight and… read more…
- How to Use the Double Consolidation Loophole for Student Loans
The double consolidation loophole is a way for parent borrowers to make their loans eligible for the improved repayment terms available under the Biden administration’s SAVE program. This can lower monthly payments for a qualifying household significantly, as the SAVE program offers more generous income-based repayment options than Parent PLUS Loans. However, the window of opportunity… read more…
- How Is Alimony Calculated in New York?
Alimony is a payment from one divorced former spouse to the other that’s intended to provide the lower-earning spouse with sufficient income to meet their needs. Laws in every state provide for alimony, also known as spousal support or spousal maintenance, but they use a variety of ways to set the amount of money to… read more…
- How Is Alimony Calculated in California (CA)?
This alimony system was built around the idea that the job market significantly disfavored women, so a divorced wife could rarely support herself. As a result, alimony often required a significant division of future income for either life or until the recipient remarried. Most states have changed this system in whole or in part. Alimony, today,… read more…
- How to Achieve Retirement Security With a Financial Plan
Personal finance can be daunting, but with a well-crafted financial plan, you could map a course to help reach your financial goals with confidence. A financial plan is a comprehensive strategy that is tailored to your unique financial situation and encompasses budgeting, savings, investments, insurance and estate planning. Whether you’re preparing for major milestones or… read more…
- I Have $900k in a Roth IRA and Would Receive $2,200 Monthly From Social Security. Can I Retire at 66?
Imagine that you have $900,000 in a Roth IRA and collect another $2,200 per month in Social Security. Can you afford to retire at age 66? A good way to answer this question is to start with your budget. What do you expect to spend on essentials, like housing and fixed monthly expenses, and what… read more…
- Income-Based Repayment (IBR) vs. SAVE for Student Loans
If you owe money on a federal student loan, you may be able to qualify for a repayment plan that will lower your payments and, ultimately, provide for partial forgiveness of the debt. Income-Based Repayment (IBR) and Saving on a Valuable Education (SAVE) are two popular repayment plans that include forgiveness. The two plans are… read more…
- How Is Debt Divided During a Divorce?
During a divorce, debt is handled the same as assets. This means, primarily, that courts will try to follow two rules. First, courts will distribute debt based on its marital and pre-marital status. Debt that someone held before the marriage will, in general, remain entirely with that individual. Debt the couple accrued during the marriage… read more…
- Gift Tax Calculator: Do You Owe Gift Taxes?
If you’re giving away money or property, you may be subject to the federal gift tax depending on how much you give and who receives it. The gift tax is separate from the estate tax, which applies after death. But both are part of a broader system for taxing the transfer of wealth. Do you… read more…
- How Permanent Alimony Works During Retirement in Florida
In July, 2023, Florida eliminated permanent alimony as a category from its divorce statute. Going forward, alimony payments in Florida will be based on set terms. Payments will expire either after a specific amount of time has passed or once specific conditions have been met. This means that spouses can now plan for an end to… read more…
- How Child Support Is Calculated in California
Like all states, California uses a formula to calculate the exact amount of child support that a parent owes. This formula result is then applied and modified by a family court judge, who produces a final child support order. Family courts have broad discretion to modify child support based on their impression of the child’s… read more…
- How to Build a Financial Planning Training Program
As financial markets grow in complexity and the demand for tailored financial advice continues to escalate in the U.S., a variety of training programs can provide the necessary education for both aspiring and seasoned financial advisors. These lessons could span from investment strategies to tax planning and retirement, as well as estate management and other… read more…
- 7 Major Financial Checkpoints: How Do You Stack Up?
When it comes to financial plans, your assets, cash flows and debts all influence the path toward your goals. While talking to a financial advisor can help you establish a comprehensive plan to reach your goals, you can use basic rules of thumb to gauge your current financial position. 1. Housing Ratio (Monthly housing costs)/(Monthly… read more…
- How to Manage Sudden Wealth in 7 Steps
A substantial boost in your personal wealth can happen overnight. You can win the lottery, inherit an estate or profit from a business sale. Many people aren’t prepared for a sudden windfall, making it difficult to know which steps can protect that money and grow it long-term to last a lifetime. If this sounds like… read more…
- What Is the Average Net Worth of a 50-Year-Old?
The typical American household led by a 50-year-old has an average net worth of $897,663, according to Federal Reserve data. This stage of life underscores the importance of consistent wealth-building efforts. Comparing net worth benchmarks by age can serve as a useful reference point for assessing your financial standing. By implementing strategic planning and maintaining… read more…
- What Is a Trade Line and How Does It Work?
When you open a new credit account, financial institutions create what is known as a “trade line.” A trade line is a record of a credit account, including its status and activity, as reported by lenders to credit reporting agencies. It reflects your borrowing and repayment behavior, playing a significant role in shaping your credit… read more…
- What Is a High-Yield Corporate Bond?
Corporate bonds, which are a type of debt security, function as a tool for corporations to raise capital. A high-yield corporate bond offers higher interest rates than a typical corporate bond because it carries a higher risk of default. The “high yield” refers to the greater interest or coupon rate that investors receive as compensation… read more…
- What Is GDC for Financial Advisors?
A gross dealer concession (GDC) gets paid to a brokerage firm when a financial product is sold by a salesperson or financial advisor on commission. These products include securities like stocks, bonds or mutual funds, as well as insurance products like annuities or long-term care. A percentage of that GDC will also get paid to… read more…
- Financial Planning Before, During and After a Divorce
Navigating the complex world of finance is difficult enough on its own, but when you combine it with the emotional upheaval and legal proceedings of a divorce, it can become overwhelming. Financial planning at different stages of the divorce process is vital to minimize financial risks, ensure fair asset division and build a secure financial… read more…
- 7 Financial Planning Strategies for Single Women
If you’re a single woman, most general financial advice also applies to you — but with a twist. As the gender pay gap holds steady, you may need to be a little more vigilant to create an independent financial future. Here… read more…
- How Does High-Net-Worth Lending Work?
If you’re going to the bank for a loan, you might think it would be easier as a millionaire. However, when it comes to high-net-worth lending, more money can mean more problems if the individual doesn’t have conventional income or… read more…