Why Financial Literacy Is So Elusive
Nice article from Barry Ritholtz about the importance of a basic financial education, why we're so bad at providing it and what can be done to improve the situation.
Financial Planning as Pleasant as A Medical Exam
Who likes a visit to the doctor’s office? Exactly. In a recent survey conducted by The Harris Poll Americans likened financial planning to a medical exam. Adults aged 18+ were asked how they feel about financial planning. The #1 answer was “not my favorite thing in the world but know it needs to get done [...]
IRS Releases §529 Guidance
Notice 2018-58 provides rules that can be relied upon unless and until Treasury issues clarifying rules regarding the following: K-12: Distributions can be used to pay up to $10,000/yr of tuition per beneficiary at an elementary or secondary public, private or religious school. Tuition Refunds: A beneficiary receiving a refund of tuition or other qualified [...]
Kiddie Tax Changes
One of the items getting little attention in the recent round of tax reform is the kiddie tax. Passed by Congress in 1986 to prevent taxpayers from shifting income to their kids (presumably in a lower bracket) the tax raises more than $1 billion per year for Treasury. What is it? The kiddie tax is [...]
You Don’t Know What You Don’t Know
Really enjoyed this graphic: So many applications to life. Knowing what we know, knowing what we don't and knowing there's so much more to learn. It's so important to know where we stand. We are what we are...not what we think we are.
Asset Sheltering and Financial Aid
It’s that time of year – time to fill out the Free Application for Federal Student Aid used by more than 99% of public universities. Many parents take the “why bother” approach. “We have too much money. We’ll never get any aid.” The first thought is usually “why did I have kids” while the second, [...]
Summary of Tax Changes
This chart does a nice job showing the prior laws, the competing Senate/House proposals for change and how things were resolved during the reconciliation process to create the new laws to go into effect beginning in 2018. Missing from the chart is discussion of the changes to §529s. Previously distributions in order to qualify for [...]
Tell Them What They Want To Hear
Should a financial relationship be about doing what’s right or feeling good? The former, right? Not so fast. A survey by index zealots DFA found the #1 thing valued in receiving financial guidance is a “sense of security / peace of mind.” Not that that’s a bad thing of course but at 35% of respondents [...]
The Right Way to Borrow for College
About to pack up and head off to college? Here are some sobering statistics: more than 70% of college students borrow for college the average undergraduate leaves college with $37,000 in loans These figures don’t include the bank of mom and dad – “loans” [...]
Interest Rates on Federal Student Loans Heading Higher
Interest rates on new federal student loans change each year based upon results of the May 10-year Treasury auction. The 2017 auction closed last week. Although the Department of Education has yet to officially announce the new rates expectations are: The rate on federal Stafford Loans for undergraduates will likely rise from 3.76% to 4.45%. [...]