September, 2017

Your 529 College Savings Plan Quick Reference



 
Are you making best use of  the 529 College Savings Plan, or have you been procrastinating when it comes to putting your best-laid plans in place? Let's step through the key considerations involved, so you can move from pondering to progressing toward your kids', grandkids' or even your own college funding.

Back to the Basics

Happy belated birthday to the 529 plan! Named after Section 529 of the Internal Revenue Code, this tax-favored savings tool for college-bound Americans turned 21 years old itself last month, in August 2017. While hardly exhaustive (and as subject to change as any other tax laws), here's a look at some of the 529 plan's current characteristics:
  • Ownership - Each plan has an owner who retains control of the assets - usually a parent or grandparent.
  • Beneficiaries - Each plan has a beneficiary. This is usually a child or grandchild, but you also can name yourself if you want to pursue additional higher education for fun or profit. The plan owner can usually change the named beneficiary if circumstances change.

Take This Action in Response to Equifax Data Breach

You have no doubt heard about the massive data breach at Equifax, a credit monitoring service. According to the company, the data of 143 million individuals were stolen, including names, addresses, dates of birth, Social Security numbers and driver's license information. Equifax also said 209,000 credit card numbers were accessed as well as 182,000 dispute documents.

Like you, we were dismayed to hear this news - but not surprised. This is not the first major data breach and it won't be the last. You should assume that your personal data has already been stolen. We have ourselves.

Unfortunately, there is nothing you can do to recover your data. However, you can find out if your personal information was compromised by visiting   www.equifaxsecurity2017.com/potential-impact/.

Save Social Security for Later, When You Need it Most


I think we've been looking at Social Security retirement benefits all wrong. In the long-running debate about when to take Social Security - as early as age 62 or as late as age 70 - the focus has been on timing your claim to get the most money, in total, out of the social safety net.

This is a circular argument that will never be fully decided until the Social Security recipient in question dies. So let's shift the focus from the question "How do we get the most out of Social Security?" to "How do we get Social Security when we need it most?"



We like educating investors, so we were proud to welcome Weston Wellington of Dimensional Fund Advisors who led us in a Cogent Conversation recently. Thank you Weston.



Weston's presentation: Redefining Investment Advice, compared and contrasted the conventional approach to investing with the evidence-based approach. 

We are fortunate to have this relationship with  Dimensional Fund Advisors because it impacts the lives of our clients in the ultimate positive way - allowing them to reach their goals so that they may focus on the people they love and the activities that give them joy.


 
Are You Ready to Simplify Your Complex Financial Life?

When is the last time you've taken a good look at your personal wealth: Are you taking on too much risk? Are you paying too much in fees? Do you own investments that you don't understand? Can't keep track of what you have?

 Let's have a Cogent Conversation® when we will hear what you have to say and offer an objective second opinion on where you stand today and whether you're on track toward your personal financial goals. Click the button below to get started or just give us a call.


 




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2016 ©Cogent Advisor LLC. The information and opinions contained in this newsletter are for informational purposes only and they are not intended to serve as specific financial, legal, accounting or tax advice. Because every situation is unique and fact-specific, you should consult a professional who can thoroughly review and analyze all aspects of your particular situation before making any decision or taking action.