Each fall many of our clients’ children and grandchildren begin their college experience As we guide these families from the accumulation phase through the use of their college savings we’ve found that it has been helpful to review the features of 529 College Savings Plans and offer reminders on how to take advantage of these benefits Of course each family’s circumstances are unique and we…, 529 College Savings Plans (“529 plans”, 529 plans are state-sponsored investment accounts that offer tax advantages to parents and grandparents saving for college Each account has an “owner” (typically the parent or grandparent and a “beneficiary” (the student Investments within a 529 plan grow tax-free and withdrawals for qualified college costs can be withdrawn free of federal income tax Additionally many states offer state tax…, Common questions as students prepare for the fall semester, What expenses are considered qualified for the purposes of tax-free 529 withdrawals, Qualified expenses include Tuition and fees paid directly to the school Books supplies and required equipment Textbooks must be on the required reading list Computers and peripheral equipment software and internet access as long as they’re used primarily by the student Computer software must be educational in nature Room and board as long as the student is enrolled half time or greater 100% of on…, When must funds be withdrawn to be considered “qualified”, To qualify for tax benefits 529 withdrawals must be made in the same calendar year (not academic year as the year the payment was received for the education expense It is important to consider the time frame necessary for processing as a withdrawal made during the year must be used for an expense paid prior to year-end For example a withdrawal processed in December for an expense paid in January…, What is the impact of a non-qualified withdrawal, Withdrawals that are not used for qualified expenses may be subject to federal and state income taxes In most cases the “earnings” portion of the withdrawal will be taxable as ordinary income and subject to a 10% federal income tax penalty Additionally non-qualified withdrawals may be subject to state taxes and the recovery of a state tax deduction filed for in previous years (for Illinois…, How can I keep good records, While the 529 account provider will provide an annual statement detailing the allocation between the account’s “basis” (contributions and “earnings” it’s the responsibility of the account owner to maintain records documenting the student’s expenses and withdrawals Account owners should keep all receipts for educational expenses and segregate the qualified expenses from non-qualified costs…, What if anything is left over, In the event that a 529 account has a balance at the conclusion of the student’s college term an account owner has a number of options The account can remain invested for the student’s graduate school or other post-secondary education The account owner can change the account beneficiary to another family member at any time This change can be used to transfer the account balance for a sibling’s or…, Published March 2025, 1 Illinois limits the annual state tax deduction to $10000 for single taxpayers and $20000 for married taxpayers filing joint returns 2  https//wwwsavingforcollegecom/compare_529_plans/plan_question_ids%5B%5D=437&page=compare_plan_questions 3 https//stwservecom/secure-act-2-0-allows-for-rollover-of-unused-529-plan-funds-to-a-roth-ira/ Before investing in an out-of-state 529 college savings…

Your financial plan and investment portfolio is likely made up of a variety of different types of assets which you probably review with your wealth advisor at least annually if not more often Insurance policies can play a critical role in your financial plan but they are often overlooked, Whether it is life health disability long term care excess liability or property and casualty insurance plays a major role in a comprehensive financial plan Specifically when it comes to life insurance our clients often ask “How much insurance coverage should I have” “Should I keep my old policy” “When can I stop paying premiums” We recommend that you review your life insurance policies —…, Types of life insurance, There are several different kinds of life insurance, Term insurance , This is the lowest cost life insurance you pay a level annual premium for a fixed death benefit The term expires after the chosen - number of years (ie 1020 and 30-year term, Whole Life insurance,  Compared to term insurance these policies are more expensive but build up cash reserves resulting in a permanent asset  As long as premiums are paid the policy should not expire  The cash value is invested in the general portfolio of the insurance carrier  Eventually the cash value can be used to pay premiums and receive an income stream, Universal/Indexed Universal Life/Variable Life insurance,  With these types of policies your premium is higher than term and the cash value builds up just like a whole life policy except that you can direct how the cash value is invested The choices vary by product but allow investment in the equity bond and cash markets  All these policy types can play a role in a financial plan The key is making sure the policy is performing as expected and the…, Five reasons to review your life policy, 1 | Whole life premiums are continuing well past the estimated payment duration Since whole life policies are invested in the insurance company’s general account the crediting rate that they earn is based on the insurance company’s ability to earn interest on that account These general accounts are conservative fixed income portfolios Although interest rates have been higher lately they have been…, When was the last time you reviewed your policies, We recommend that our clients review their life insurance policies and their beneficiaries every three to five years Questions to ask during that review include Is this still the right amount of insurance coverage Is this still the right policy What am I trying to accomplish What do I need versus what I already have What are my options As your needs change over time it is important that you work…

Preparing for retirement is a marathon — not a sprint — and requires discipline over a long period of time Much like exercising or changing one’s diet results are often best when a person has a partner to be accountable to as well as share success That said many couples fail to plan effectively together , Researchers at the University of Notre Dame and the University of Cambridge performed studies on the purchasing patterns of couples who were married or in long-term relationships¹ The studies compared the types of purchases individuals made when couples had a joint bank account versus individual bank accounts The researchers found that Individuals are more likely to make purchases for goods and…, If you are thinking about retirement here are a few things you and your partner should consider, Discuss your retirement income needs and potential sources of income Discuss your saving and investment strategy A detailed discussion will disclose your strengths and weaknesses and allow you to set goals to increase your probability for success Maintain a healthy lifestyle According to the National Bureau of Economic Research2 households average $122000 of medical expenses between age 70 and…, Published January 2025, 1 Garbinsky Emily and Gladstone Joe The Consumption Consequences of Couples Pooling Financial Resources (2017 Association for Consumer Research  http//acrwebsiteorg/volumes/1023767/volumes/v45/NA-45 2 Farrell Chris The Truth About Health Care Costs in Retirement (June 28 2018 Forbes  https//wwwforbescom/sites/nextavenue/2018/06/28/the-truth-about-health-care-costs-in-retirement/#41483ac64401