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College Savings Plan 529 | A Date Parents Need to Put on The Calendar



529 College Savings

How much will I need for my kid’s college education? And how the heck will I pay for it?

With the cost of a four-year degree rising nearly eight times faster than wages since the 1980s,

those two questions are enough to give today’s parents a serious case of night sweats.

You can argue about the reasons for the disconnect -Administrative costs? Fancy amenities?

but you know there’s a problem when a writer at Education Week is incensed.

“Madness,” she decried. Which is all the more reason to mark May 29 down on your calendar.

Otherwise known as National 529 College Savings Plan Day -Get it? 5/29?

it’s the perfect time to consider setting up one those tax-advantaged 529 plans,

as they’re called, to help sock money away to cover tuition,

books and other education-related expenses at most accredited two – and four-year colleges, universities and vocational-technical schools.

“It’s a way of keeping your son or daughter from being saddled with too much debt when it’s time to jump start their careers,

” explained Melissa Ridolfi, vice president of retirement and college products at Fidelity Investments. “

Plus, any investment earnings compound on a tax-deferred basis, and qualified withdrawals are entirely free from federal and state income taxes.”

And now to the big question: How much?

Two factors are mainly at play

1. Public vs. private schools

The cost difference can be about as mind-boggling as “Avengers: Endgame’s” record $357.1 million opening weekend domestic haul:

an average of $21,370 a year at the former, according to the College Board’s latest figures, as opposed to $48,510 at the latter.

2. The percentage of the bill you plan to foot.

If you were counting on scholarships and other grants to pick up all or most of the tab,

you should probably rethink that unless your kid is either a bona fide child prodigy or football star.

Sallie Mae’s “How America Pays for College” 2018 report found that both categories combined paid for just 28 percent of college costs.

One guess where 47 percent of the costs came from.

That’s right, “family income and savings,” with another 24 percent covered by borrowing.

In other words, as Ridolfi said, “any way you look at it, the family is on the hook to pay the lion’s share of college expenses.”

Which probably helps explain why a recent Fidelity study found that parents are increasingly starting to save before their child even reaches the age of two.

To see where you stand, try using what Fidelity calls “the college savings 2K rule of thumb.”

Simply multiply your child’s current age by $2,000 to figure whether your savings to date are generally on track to handle

approximately 50 percent of the College Board’s $21,370-a-year average cost of attending a four-year public college.

Or, especially if you want a more customized estimate – one that lets you play around with percentages and switch

back and forth between public and private schools – the firm’s free online college savings calculator takes the angst out of doing the math yourself.

Fidelity provides 12 savings ideas to help reach your own goal, and offers a choice of two different investment strategies in the 529 savings plans it manages –

including an age-based portfolio of funds that automatically becomes more conservative as the beneficiary nears college age.

Hopefully, armed with all that info, you’ll be sleeping better at night.

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Budgeting for retirement | Practicing the 7 Baby Step Strategy




Budgeting for retirement | Practicing the 7 Baby Step Strategy

Remember those retirement dreams? The first step in making those dream come true is to get out of debt.

And the best way to do that is to follow the Baby Steps.

The seven Baby Steps are like a road map for your money.

They also act as guardrails to keep you from spending where you should not.

The Baby Steps help you get out of debt; save money for emergencies, retirement, and college for the kids; pay off the house; and give away buckets of money because you have been able to invest and save wisely.

Check out the seven steps below and decide which one you are on.

Retired granny

Baby Step 1: Save a $1,000 starter emergency fund.

This may not seem important, but without saving in the bank, you are just asking Murphy (Murphy’ law) to visit you or precisely move in for a few months. Only use it in emergencies.

Hint: a new pontoon boast is not an emergency.

Baby Step 2: Pay off all debts.

Now pay off all debts except your mortgage.
That’s another step from smallest to largest with the debts snowball.

To use the debt snowball, pay off your smallest debt first, whether it is $15 or $2,000.

Make the minimum payments on the other debts.

Once the smallest debt is paid off, use that money to tackle the next smallest debt, and so forth,

it is like a snowball gathering speed and momentum downhill, only it is your money that is making headway towards a debt free life and the retirement of your dreams.

Baby Step 3: Build your fully funded emergency fund of three to six months of expenses.

Notice I said expenses, not your salary.

This fund will cover your food, mortgage, utilities and other necessities in case you can’t work for some reason (illness, family emergency, layoff etc.) check out how to cut of expenses living a frugal lifestyle

Baby Step 4: Invest 15% of pretax income info retirement savings

If you make $3,000 a month, then you should invest $450 in a retirement fund like a 401(k) or 403(b).

if your employer will match your contributions, take advantage of that opportunity.

It is like putting free money into your retirement account!

Baby Step 5: Invest for your kids college savings

I recommended using an Educational savings account (ESA) if possible.

An ESA will allow you to invest $2,000 per year, per child, if your income is under $200,000.

If you want more information about savings for your kid’s college check out this other strategy College saving 529 Strategy

Baby Step 6: Pay off the house.

No, I am not kidding.

Yes, this is possible! Imagine the money you can put toward retirement once you don’t have a mortgage to worry about!

And before you say it, there is no “good” debt even for tax purposes.

Say you have $10,000 in interest payments in a given year.

The taxes on $10,000 (if you were in a 25% tax bracket) would be around $2,500.

You would be giving the bank $10,000 in interest in order NOT to pay the government $2,500.

That’s dumb, As much as the government wastes money, I would rather give Uncle Sam $2,500 than give the bank $10,000.

Baby Step 7: Build wealth and give a bunch away

This is what you have been dreaming of! As you continue to invest your money, you can watch it grow to fund your dream retirement.

The great news is that you also get to give to others, which feel greats! You can give to charity, your grandkids (or even great grandkids!). or a nonprofit whose passion you share.

Mitrobe Advice

Remember, debt is not just about borrowing money you don’t have, it is also about borrowing from your retirement dream.

Every dollar you spend to pay debt is a dollar you could have used for investing in your retirement future!

Let’s look at the Golden rules of creating true wealth.

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Entrepreneur Mindset | Act As If It Were Impossible To Fail.




Entrepreneur mindset

Fear, uncertainty and doubt are, and have always been, the greatest enemies of success and happiness.

For this reason, top salespeople and entrepreneurs work continually to confront the fears that hold most salespeople back.

“Courage is resistance to fear, mastery of fear-not absence of fear.” (Mark Twain)

The two major fears that stand as the greatest obstacles on your road to success are the fear of failure, or loss, and the fear of criticism, or rejection.

These are the major enemies to be overcome.

As it happens, it is not failure or rejection that hurts you or holds you back.

It is the fear of failure or rejection.

It is the anticipation or expectation of failure or rejection that paralyzes you and blocks you from doing what you need to do to achieve your goals.

The truth is that everyone is afraid of something, and often, many things.

Everyone you meet is afraid of failure and rejection in some way.

The difference between the hero and the coward is that the hero is brave just a couple of minutes longer.

The average person moves away from and avoids the fear-causing situation.

The brave person forces himself or herself to confront the fear and does it anyway.

Glen Ford, the actor, once said,

“If you do not do the thing you fear, then the fear controls your life.”

Ralph Waldo Emerson said his entire life was changed when he read the words,

“If you would be a great success, make a habit throughout your life of doing the things you fear.”

And I say

Act as if it where impossible to fail

Entrepreneur Mindset | Act As If It Were Impossible To Fail.

Because you can never make off anything if you scared, to have a successful business, career, life, or anything, you have to do one thing. And that is THE HUSTLE

The fear of failure, the major obstacle that holds you back, is felt in the solar plexus and experienced in the feeling of: “I can’t!”

The way that you neutralize this feeling is by repeating the phrase, “I can! I can!” over and over.

Even more effective for neutralizing the fear of failure, say to yourself, “I can do it! I can do it!” over and over, until you actually believe it.

Whenever you repeat the words “I can do it!” your fears diminish and your self- confidence increases.

When you repeat to yourself the words, “I like myself! I’m the best! I can do it!”

you boost your self-esteem and self-image to the point where eventually you feel unstoppable.

You create within yourself the mindset of the high performance entrepreneur.

Then, as Emerson said, “Do the thing and you will have the power.”

Here is a key point about fear of any kind.

Instead of waiting until you feel courageous enough, do the thing you fear, and the courage will come afterwards.

As Aristotle said, “Act as if you already had the quality you desire, and you shall have it.”

Action Exercise: Identify the one great fear that holds you back from throwing your whole heart into becoming a big success in your field.

There is always at least one fear lurking in the back of your mind.

Now imagine that you do not have this fear at all. Imagine that you are totally unafraid in every part of your sales work.

Imagine that you are guaranteed of complete success in everything you do.

How would you act or behave if you had no fears at all?

Whatever your answer, from now on, act as it if were impossible to fail, and it shall be! Fake it until you make it.

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Business ideas

Amazon jobs from home | How to apply and get employed




Amazon jobs from home | How to apply and get employed 3
Amazon jobs from home opportunities


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