My mother is a high school counselor at a really good high school in FL. If you didn’t know, October is the early admission scramble month. Most of the applications are due November 1st so we had a few conversations over the last few day about why some kids choose to apply to specific schools even though it may not be worth to do so financially. And how do you even know if it is worth to apply and go to one school versus another when the price tags are so different? October is also the new FAFSA deadline month so in its honor, let’s talk about college today.Read More
It has been a long time I was around here. Life gets in the way of things like this. There is always some emergency to solve or something to figure out. Not an excuse, but I have also been a little busy writing a personal finance book, which will be coming out around Thanksgiving. However, for the rest of the year, we will be working diligently on getting some knowledge around finances in this blog. Here is what’s coming up between September and December:
- Each month will be dedicated to a specific topic. I am committing to two blog posts per month, coming every other Tuesday and I want you to keep me accountable to this promise.
- The month of September is all about your benefits. Annual enrollment is coming up and we will discuss some things related to how to choose your benefits. October will be about going to college/sending your kids to college in “honor” of the new FAFSA deadline. In November, we will move to investments and in December, we will focus on getting help for all things finance related.
- In addition to the posts I will be creating, I will try to post useful articles related to the same topic on the off Tuesdays. I will be posting those to LinkedIn (Inga Chira), the Facebook page for Attainable Wealth and Twitter (IngaChira). Make sure find me on the preferred platform if you have a special interest in any of these topics.
I look forward to getting back into writing the blog.
Did you really think you’d escape another new-year-resolution-related, don’t-spend-your-hard-earned-money post? I gave it a few weeks but it’s time we talk about it.
One of my clients recently asked me if I really do everything I tell her to do. You know, the typical: save money for retirement, don’t spend it on things that are not important, allocate your portfolios appropriately, etc. good things like that. I am not going to lie to my clients (after all, if they can’t trust me, who can they trust?) so I put some thought into this question. After hours (or more like minutes) of pensive reflection, I realized that my ideas around money changed quite a lot in the last year. Some of the changes were a result of my personal life and some were the result of working with about 20 completely unique people over the last year. And here is what I learned in 2016.Read More
In the last 7 years, my husband and I managed to buy three houses, remodel two and sell one. It’s not that I am an expert (I do watch lots of HGTV though) but somehow, I now have a pretty clear idea of what I am willing and not so willing to do for my living happiness. Today’s conversation is about housing. How much is too much? Does a big house mean a happier life? And when do you say NO, we can’t afford this house?
I am certainly not going to give you advice or judge any decision. This is a very personal choice but here are a few things to consider as you shop for your first (or next) house:Read More
A few of my friends who just had or are about to have babies are asking me about 529 plans and whether it is worth opening one. Like everything else in financial planning, it depends, but this would be a great time to discuss what 529 plans are and when it makes sense to open them.
What is this thing?
A 529 account is a savings account designed for higher education. That’s it. It’s that simple. You put some money in, the money grows, and your child uses it years down the road to go to college. You often hear the words “tax exempt” or “tax advantage” but make sure you are clear exactly what that really means. A 529 does not work like a 401(k). Your current taxes will NOT go down if you contribute to it. However, as long as you take the money for what the IRS defines as qualified education expenses, all the interest that has been accumulated will be tax free. This is a great advantage.
A 529 is a general blanket term that may refer to a savings plan or a prepaid tuition plan. Above, I am referring to the “savings” plan. Some states have a program where you prepay the tuition and your child can go to any in-state school for free. That is NOT what I am referring to in this post. Here is a good guide the state of FL put for us about the differences. If your state offers both, think about your baby and where he or she will be years down the road before making this choice: http://www.myfloridaprepaid.com/learning-center/savings-vs-prepaid-plans/
Is a 529 plan worth it?
So let’s get back to the 529 savings plan that lets you use the money anywhere you want. When young parents ask me what’s better, a 529 plan or a savings account, the answer will always depend on “what exactly do you need this money for?” Obviously no one knows; your baby was born 5 days ago but if you are the type of family where going to college is not a choice and the money will indeed be used for college, a 529 opened at birth wins. Why is that?Read More