While college savings accounts like 529s provide some nice tax benefits, there are strings attached (including the dreaded 10% penalty for non-education related withdrawals). In this episode of Grow Money Business we dive into how much parents should really be saving for their kids’ college education amid a changing landscape for education and student loans. We also cover an interesting month in the markets and an article reviewing recent performance of single stock ETFs.
Show Notes
[01:54] Market Update – What’s new in the market in the month of March.
[07:36] Article of the Week – Wall Street Journal’s article on ‘Leveraged ETFs’.
[15:28] Changes – Grant explains the changes in higher education.
[22:45] Saving for College – Grant shares his take on prioritizing saving for college education.
[25:24] Education Savings Accounts – Grant explains how Coverdell and 529 plan works.
[29:30] Qualified Education Expanses – Grant explains what entails the qualified education expanses.
[32:00] Issues – Solutions for situations where the intended beneficiary may not need the full amount for education.
[35:25] Financial Independence – Grant explains the importance of prioritizing your own financial security, specifically retirement, over saving for your child's education.
Resources
Billions Flowed Into New Leveraged ETFs Last Year. Now They’re in Free Fall.