I hope that everyone enjoyed the Thanksgiving break and has had a good start to their holiday season. My family and I enjoyed spending the holiday with family members in New Jersey. It was nice to have a more traditional holiday gathering this year. We missed not being with everyone in 2020.
I’m often asked about how to save for a child’s college education. While there can be exceptions, my first choice is a 529 plan. They provide tax-free growth. Plus, in many states, you can get a tax deduction if you participate in the plan sponsored by your state. The article shares seven benefits you get from saving in a 529 plan.
If you didn’t see the email I sent out earlier this week, please check out the changes I’ve made to the Apprise website. One of my favorite additions is the search bar for my blogs. It can help you find long-form content on topics I’ve written about. It can also help you find those highlighted in my “Five Favorite Reads” blogs.
Here are the links to this week’s articles as well as a brief description of each:
1. 7 Benefits of a 529 Plan. A 529 plan represents one of the most tax-advantaged ways you can save for your child’s education. These plans can provide meaningful benefits to you and your family. This relatively flexible education fund can potentially benefit multiple children over many generations. If you want to save for your child’s education, but are not sure how to do so, reading this article may help you decide.
2. Three Theories for Why You Have No Time. We are all busy. We complain about being swamped or overwhelmed. What would happen if someone presented you with new technologies that could automate or expedite every aspect of your job? What would you do with the extra time? Would having extra time even help? If you look at the impact of technological advances on our lives, you might be surprised. Why? It starts with this: “Better technology means higher expectations – and higher expectations create more work.” If you read the article, you’ll find two additional theories.
3. What Is a Backdoor Roth IRA? Roth IRAs provide a great way to take advantage of today’s low tax rates. They can provide years of tax-free income in retirement. Do you have a Roth IRA? Are you eligible to contribute to one? If you’re not, depending on what type of retirement accounts you have, a backdoor Roth IRA conversion could be for you. Check this article out to learn more about Backdoor Roth IRAs. You can also see if a backdoor Roth conversion makes sense for you. It covers some of the basics about how to do a backdoor Roth IRA conversion as well. If you want to complete a backdoor Roth conversion for 2021, I recommend that you complete it before year-end. There is proposed tax legislation would eliminate backdoor Roth conversions after 2021. If you’d like some help with a backdoor Roth conversion, please schedule a free call. I’d be happy to help.
4. How to Spend Way Less Time on Email Every Day. According to the McKinsey analysis cited in this article, the average professional spends 28% of the workday reading and answering emails. Whether you spend that much time on email every day or not, you could benefit from spending less time on email. This article shares some great suggestions for reducing the amount of time you spend on email each day.
5. Are We Taking the Wrong Approach to Financial Education? Many of us make simple financial mistakes. Some can have significant consequences. For example, we don’t take advantage of the employer match to our 401(k) plan. We might not invest in the market at all. I shared many of the mistakes I experienced firsthand while growing up in this blog. In fact, I named my firm Apprise because Apprise means to inform. I also want to help others avoid many of the mistakes I saw when I grew up as well. This article shares some ways we can improve financial education.
- Incorporate rules of thumb.
- When in doubt, automate it.
- Make it a habit.
- Incorporate just-in-time education.
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Phil Weiss founded Apprise Wealth Management. He started his financial services career in 1987 working as a tax professional for Deloitte & Touche. For the past 25+ years, he has worked extensively in the areas of financial planning and investment management. Phil is both a CFA charterholder and a CPA.
Located just north of Baltimore, Apprise works with clients face-to-face locally and can also work virtually regardless of location.
