She so cute 
Cute chiclets
August 7, 2007
Cute, but require a lot of energy. I’ll try and do a better job of keepin the ole blog more up-to-date, but life is crazy right now…
529s: Best savings plan gets better (CNN Money Article)
July 21, 2007As I mentioned in an earlier post, I got Makaela started on one of these and recently the father mentioned he wanted to help with the kiddos, so he’s going to set one up for Maddy. I talked a little about 529s in the earlier post and this article with great, up-to-date info came out since then.
529s: Best savings plan gets better
The last doubts about 529 plans have been erased. So, college savers, what are you waiting for? Here’s our guide to the best of the bunch.
July 19 2007: 2:09 PM EDT
NEW YORK (Money Magazine) — For years, consternation over expiring tax breaks, questionable financial aid treatment and high fees cast a long shadow over 529 plans, the once and future king of college savings accounts.
Not anymore. Consider these recent developments:
- Over the past year Congress has made tax-free withdrawals from these accounts permanent (they had been slated to end in 2010).
- Clarification of the financial aid rules has put to rest concerns that the plans can hurt eligibility for grants and low-cost loans (they may help).
- And many 529 providers have cleaned up their acts, slashing expenses and upgrading their investments.
The alternatives to 529s, meanwhile, are looking grim. Custodial accounts? Sunk by the latest hike in the kiddie tax. Coverdell Education Savings Accounts? An impending drop in contribution limits to just $500 a year will barely allow you to fund your kid’s pizza budget.
The upshot: You’d now be a fool to save for college any other way but in a 529 plan.
Faced with such a clear choice, parents (and grandparents) have been pouring money into these plans lately – a record $5.2 billion flowed in during the first quarter of this year alone.
You will certainly need every penny you can sock away. With college costs in recent years climbing at a 6% annual rate, four years of tuition, room and board at a public school will run you $125,000 by 2022; for a private college, you’ll need closer to $300,000.
The real question then is not whether to save for college in a 529 account but which one to pick. There are some 85 plans available nationwide, with almost every state offering at least one program and some, like West Virginia, offering as many as five.
The number and quality of the investment choices vary, and some of the plans are a whole lot more expensive to buy and own than others. Depending on where you live and which plan you pick, you might qualify for a state income tax deduction on your contribution.
Then again, the rules governing those write-offs may be changing soon. And many of the plan managers could change over the next few years as well, since some 60% of state contracts with their current 529 providers are set to expire by 2010.
Confusing? Well, yes. But it’s nothing you can’t handle by adhering to a few simple guidelines.
My little chiquita is 2 now…
July 21, 2007Makaela is startin to get all growns up. Wanna thank everyone that made it to Chuck E’s. She wasn’t acting her best, but I’m sure she’ll be forgiven. She made out like a bandit…Life with two grandma’s in town! Brandie did a great job with the party favors and we got a nice Hello Kitty cake from Sams. Hard to believe she’s been in my life since she was 4 mos old, but time flies when you’re havin fun. High Five!
I had family to entertain as well (my dad, sister and family friends were in town from Ohio)…They made it to the FW Zoo and then I took them down to Galveston towards the end of the week. Was a crazy, but fun week overall.
Vegas Baby, Vegas!
July 10, 2007
We decided we wanted to do a classy wedding and then we decided to go to Vegas!
It’ll be Brandie’s first time going and it will be an excellent time. I’d put more about it, but we’ve only started to make plans. Now for a short speech to thank the Academy.
Thanks again to those that have volunteered their free time (Vita especially) to help us achieve some of our goals. It’s something that neither of us will ever forget and I hope we can return the favor at some point.
Im sure I’ll make you an offer you can’t refuse…God, I love The Godfather.
The real reason you’re broke
July 10, 2007Great article on MSN about purchasing cars….it’s a lengthy read, but well worth it. It might change your mind on what kind of car you need next. -Mikey
For a huge number of troubled debtors, it all began with a car. Too much car, financed too long, traded too soon.
If you’re constantly broke and can’t figure out why, the answer may be sitting in your driveway.
Americans are spending more on their vehicles than ever before — more than $8,000 a year on average — and it’s driving some to the breaking point.
Credit counselor Bill Thompson of Jacksonville, Fla., estimates that one out of every four clients his agency sees has overspent — sometimes dramatically — on a car.
“They may be spending 15% to 20% of their (take-home) pay on just the car payment,” said Thompson, who supervises credit counseling for the nonprofit Family Foundations, “and that doesn’t include insurance, gas, maintenance and all the other costs of owning a vehicle.”
And sometimes there’s more than one whopping payment. Sandra McGeary, a counselor at Consumer Credit Counseling Services of Western Pennsylvania, says she regularly sees middle-class families struggling with two payments in the $400 to $500 range. The burdens are so big that it doesn’t take a major disaster, like a job loss, to send them over the edge.
“This fall they started coming in saying, ‘We were doing so well. We don’t know what happened,’ ” McGeary said. “I’ll ask, ‘Where did you cut back in your budget when gas prices went up?’ and they’ll usually say, ‘What budget?’ . . . A lot of times they don’t know how much they can really afford, and they didn’t cut back elsewhere” when their transportation expenses rose.
Once they’ve bought, they’re stuck.
With most other areas of the budget, you can find ways to trim. You can eat out less and shop more carefully to reduce your food bill. You can lower utility bills by adjusting the thermostat. You can cut your entertainment budget by canceling your cable service and borrowing movies from a library. You can even reduce your shelter costs by taking in a roommate or moving to cheaper digs.Once you’ve committed to a car payment, though, your options are few, particularly if your loan is greater than the car’s value. Whether you drive it or not, you’ve got to make the payments, and you’ve got to insure it.
| Income range | 2005 spending |
|---|---|
| Less than $19,179 | $2,742 |
| $19,179 to $35,999 | $5,330 |
| $36,000 to $57,659 | $7,437 |
| $57,660 to $91,704 | $10,504 |
| More than $91, 704 | $15,691 |
| All households | $8,344 |
(Sources: Bureau of Labor Statistics, Census Bureau. Average transportation expenses include vehicle purchases, finance charges, insurance, fuel, maintenance and repairs, public transportation and other out-of-pocket expenses but not vehicle depreciation.)
Rhianna – Umbrella
July 9, 2007This is for my dear friend, Mick. It’s not quite Beyonce, but I know he has a thing for Rhianna and her huge forehead…
What is the value of a college education?
July 9, 2007
It may surprise you that, on average, an individual with a bachelor’s degree earns approximately $54,392 per year, compared to the $31,044 average yearly salary of a worker with a high school diploma.
Source: U.S. Bureau of Labor Statistics, January 2007, Usual Weekly Earnings of Wage and Salary Workers – People 25 Years Old and Over.
With that in mind, the best a parent can hope to do is at least give their chittlins the opportunity to get edumacated and make a prosperous life for themselves. This is not to say a college education guarantees that…That’s a whole other argument. Let’s just say it gives them the best hand possible.
We recently got Makaela, our little 2 year old princess, started in a 529 plan. For those that don’t know what that is…here’s the wiki definition: A 529 plan is a tax-advantaged investment vehicle in the United States designed to encourage saving for the future higher education expenses of a designated beneficiary.
The beauty of the 529 plan, is that there are many different plans one can enroll their child (or other beneficiary) into. Every state has one…most are different and most allow people from out of state to participate. I decided on the Utah plan. They offer a great amount of fund diversity along with relatively low fund costs. A true Boglehead characteristic…Here’s a look at the UESP age-based options.
What is the value of your education?
Green Jelly – 3 Little Pigs
July 7, 2007This video has always entertained me. I remember watching it when I was like 12. Green Jello was popular for a while there…wonder what the hell they’re doing now. Anyone?
