As school starts up again, we at Snow Creek want you and your child to be as prepared as possible. Here are a few things you might consider as we begin a new school year.
Most people are familiar with the advantages of 529 Plans. In the past, savings for secondary and elementary school wasn’t eligible for tax-free growth. Now, the new Tax Cuts and Jobs Act created further opportunity for 529 Plans as they can now be used for public, private, or religious elementary and secondary school expenses up to $10,000 per year. Parents and grandparents can now contribute funds to 529 plans with the understanding the money may grow tax-free. Any funds not used for pre-college education can be used to supplement funds earmarked for college.
This is particularly advantageous for those who want to “frontload” a 529 plan. For example, a joint contribution from grandparents totaling $150,000 can be frontloaded and used at the parent’s discretion for elementary, secondary, or college education. A contribution such as this may have resulted in excess funds in the past.
This month many parents are saying farewell to their children as they head to college. Most have discussed housing, finances, meal plans, etc., but haven’t thought through how they’ll be able to make decisions for their child if there’s a medical emergency. It is a parent’s worst nightmare to receive a call that their child is in the hospital, but cannot get any details because of HIPAA restrictions.
One way to combat this issue is for the child to sign a health care proxy. This is a legal document that can appoint you, as the parent, to make health care decisions on behalf of your child. This document can cut through a lot of red tape in an already stressful situation. Make sure the health care proxy is valid in the state where your child will be attending college.
We are all aware of the never-ending risk to our cybersecurity. More and more of our daily activity is done electronically, some by choice and sometimes by necessity. However, protecting our data seems to be an overwhelming challenge. You can access our cybersecurity checklist by clicking the link. Some of these basic tips can reduce a huge headache if your identity is compromised. Whether you’re a student or graduated long ago, it’s worth the time and effort to protect your identity.
Have a great year!
This data is gathered from what is believed to be reliable sources, but we cannot guarantee its accuracy. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly, will be profitable, equal any corresponding indicated historical performance level (s), or be suitable for a given client or portfolio.