Before you take any action related to financial aid, you need to know enough to ask the right questions. To get started, here’s an overview and key actions every parent should consider first.
Choosing the right health insurance plan — at the right cost — will depend on many factors. In this Q&A article by Karin Price Mueller for NJ.com, Modera Senior Financial Advisor Peter J. McKenna, CFP®, MBA, breaks down what goes into making that decision.
Peter McKenna offers potential strategies and insight into the different types of accounts that can be used for a child’s savings. Read more in this Q&A article by Karin Price Mueller for NJ.com.
A Roth conversion is simply the process of taking a pre-tax IRA (that grows tax-deferred until withdrawn) and converting it into a Roth IRA, paying the taxes now, and allowing it to grow tax-free until withdrawn. Roth conversions are generally good for people that pay at lower tax rates today than they anticipate paying in the future.
Do you have an exit strategy for your business or career? Whether you are a corporate executive or a business owner, there will come a time when you want, or need, to transition to the next phase of life. Done in advance, this can be an optimistic process, it should define how YOU want to exit. As the plan develops, there will be reality checks and alternative paths to consider, but at this point it should be a framework of how you want the future to look.
Your employer’s traditional 401(k) plan and deferred comp plan may look similar. They may be visible from the same website and they may appear to have the same investments, but they are different in one very critical way. The deferred comp plan is not protected if your employer goes bankrupt, while the 401(k) plan is protected. With the recent downturn in the markets and volatility likely to continue, it’s important that you understand the differences between the two types of employer plans and review if any adjustments need to be made to your participation or allocation strategy.
With so much information being shared at this time, we wanted to make sure you did not miss two very important issues related to educational funding that apply to anyone who 1) paid tuition for the spring 2020 semester out of a 529 account or 2) has student loan debt. Feel free to forward this to others in your life whom it may apply to.
The price of a college education has risen dramatically over the last few decades – in many cases far beyond the rate of inflation. For example, a $3,000-per-year tuition in the early ‘70s translates to just over $18,000 in today’s dollars. But when I researched a well-known college that cost $3,000 a year back then, I found it now charges between $31,864 and $35,086 a year. And that’s far from the most expensive one.