Joshua J Sheats, MSFS, CFP, CLU, ChFC, CASL, CAP, RHU, REBC is a financial planner who teaches people how to live a rich life now while building a plan for financial freedom in 10 years or less. He mixes creative approaches to lifestyle design, deep-dive financial planning techniques, and hard-core business strategy to equip you with the knowledge and inspiration you need to build financial independence.
http://radicalpersonalfinance.com
138-Masterclass on 529 Plans a.k.a. Qualified Tuition Programs - Part 1
We're continuing our college series with an in-depth discussion of 529 plans.
529 plans are incredibly popular in all their permutations. (Many people who are currently participating in a 529 plan don't actually realize it because they refer to it as a pre-paid tuition program.)
They're also under attack. President Obama's most recent budget proposal targeted them for change. (It also targeted Coverdell ESAs.)
Personally, I think 529 plans are often misused and mis-applied. The majority of the mass affluent who participate are simply not getting a huge benefit in exchange for giving up the freedom and flexibility of the money.
But, there are a number of things that can be done with these accounts that are really unique.
Enjoy part 1 of our class today and learn:
- What the differences are between various types of 529 plans.
- Who they're a great fit for.
- How to use them to pay for travel and real estate tax-free.
- The history of the legislation affecting these accounts.
Enjoy!
Joshua
Links:
- A Comprehensive Guide to the Ultimate Education Account a.k.a. the Coverdell Educational Savings Account
- IRS Publication 970: Tax Benefits for Education