In this episode we kept the November sports theme alive. Lions jerseys and volleyball sweatshirts. A little friendly banter about who is a true Lions fan and who joined the party once the wins showed up. But once the sports talk wrapped up we shifted into a topic that comes up constantly for parents and soon to be parents. The 529 account!

529's have more flexibility than most people realize and they could be a powerful long term strategy when they are understood clearly.

What is it? How does it work? And why does it feel like every conversation about kids and college includes some random string of numbers and letters?

We Jacqueline and Michael, CFP®. EA break down the 529 in plain English so you can understand

💭 How could you tax free growth on education savings

💭 Who should consider opening the account and when

💭 Why parents sometimes open one for themselves before kids are even born

💭 How scholarships affect the money

💭 what counts as qualified education from K-12 to college to trade school

💭 The new option to move money into a Roth account

💭 The rules like the fifteen year clock and the thirty five thousand dollar lifetime limit

💭 When it may make sense to front load contributions

💭 How state plans work and why you can choose any state you want

We also talk through the real life side of this. What if your kid gets a full ride. What if they do not go to college. What if you want them to have some skin in the game. What if you want to help with retirement too.

💬 Questions or Want to Connect?

🌐 𝐖𝐞𝐛𝐬𝐢𝐭𝐞: www.custerfinancialadvisors.com

📧 𝐄𝐦𝐚𝐢𝐥: custerfinancialadvisors@lpl.com

Chapters

00:00 Sports Theme Day

00:44 Did Michael Become Lions Fan When They Got Good?

01:49 Why's Jac a South Alabama Fan?

02:17 Understanding 529 Plans

03:00 What is a 529?

03:23 What Could the Tax Benefits Be?

04:15 Use a 529 for Me or My Kids or Both?

04:50 Can I use a 529 for K-12?

05:06 Funding 529 Before Even Having a Kid?

05:55 What All Could You Use the 529 For?

06:39 Options if Don't Use for Education?

07:56 New Rules Allow Families to Use 529 for Retirement

09:32 How Much Do They Allow into a 529?

10:58 Is there a Benefit to Front-Loading a 529?

11:36 Do You Need to Use Your Own States 529?

13:41 529 Plans and Roth IRA Transfer Tax Strategies

Disclosures:

Harborfront Financial Group is a Registered Investment Advisor registered with the Securities and Exchange Commission (SEC). Registration as an investment adviser does not imply a certain level of skill or training, and the content of this communication has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority.

The information contained in this material is intended to provide general information about Harborfront Financial Group and its services. It is not intended to offer investment advice. Investment advice will only be given after a client engages our services by executing the appropriate investment services agreement. Information regarding investment products and services are provided solely to read about our investment philosophy and our strategies. You should not rely on any information provided on our web site in making investment decisions.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Harborfront Financial Group, a Registered Investment Advisor. Harborfront Financial Group and Custer Financial Advisors are separate entities from LPL Financial.

This is a hypothetical example and is not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing. All investing involves risk including loss of principal. No strategy assures success or protects against loss.