DON’T LETMONEY GET IN THEWAY Of Your Grandchild’s Education
There are people who also say they can weather the downturn. I’ve heard people say they were just fine in 2008/2009. But that was 11 years ago. At that point, the people who said the recession didn’t really impact them were in the workforce. They had a reliable (or mostly reliable) income and were on top of their investments. Plus, 11 years ago, many people were able to cash in on the downturn. In a downturn, you can essentially buy stock “on sale.” That’s when people were buying low. And if they weren’t selling low too, then there is a good chance they prospered over the last decade as prices recovered and soared. That isn’t necessarily the case today. These folks might be retired now. Their income is coming from their investments or retirement accounts — and that’s it. If a recession hits, those accounts may very well take a hit, too. There’s no steady employment income to fall back on. You want your retirement assets to last you through your retirement. You want to know you’ll be taken care of. This is why you need an asset preservation strategy. While we can't predict the future, we can still prepare for the future, and our goal is to protect our clients from whatever storm may be brewing on the horizon. Kelly Campbell 529 savings plan are considered student income and could hurt your student’s eligibility for financial aid. If you choose to fund through a parent’s 529 savings plan, which doesn’t count as student income, you lose control over the funds you contribute. Pay their tuition. Not everybody has $20,000 just lying around, but if you do, using it to pay for your grandchild’s tuition isn’t a bad way to spend it. Normally, annual financial gifts that are exempt from the federal gift tax can’t exceed $15,000, but payments toward someone’s tuition, for any amount, are not taxed. Keep inmind, however, that the money can only go toward tuition, not toward other college expenses like room and board or textbooks. Help themfind opportunities to save. Even if you don’t have thousands of dollars to give, you can still help your grandkids look for other opportunities to save. There are thousands of available scholarships, grants, and programs to help students pay for college, and helping them look online and in your community can go a long way. College could be your grandchild's first stop on the path to achieving their dreams. You can be a part of that journey by making sure money doesn’t get in the way of that. ... continued from Cover
College expenses aren’t what they used to be. What used to be affordable to any student with a part-time summer job now can take years to pay off. If your grandkids want to go to college, the cost of education should not be a barrier to their future. Luckily there are ways that you can help ease that financial burden. Invest in a 529 savings plan. There are no limits on age, income, or monetary contributions attached to this college savings account, and contributions are tax-deductible in some states. Just like a Roth IRA, the earnings grow over time and can be used tax-free for qualifying expenses, like tuition and room and board. There are a few downsides, however. Funds from a grandparent’s Would you like to be a Campbell Wealth Management Ambassador? Would you like access to exclusive CWMAmbassador events?
All you have to do is refer a friend. Do you know someone who: • Wants to be better prepared for retirement? • Is looking for a second opinion regarding their portfolio? • Has gone through a major life event (death of a spouse, retirement, etc.)? Call us at ( 703) 535-5300 and let’s set up an introduction! If they are important to you, they are important to us.
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