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How A 529 Plan Can Help Create Generational Wealth

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The majority of our wealth management customers who have kids enquire about starting 529 plans. Even before their children are born, they are keen to meet their college savings objectives.

We adore witnessing this level of zeal and output. However, I haven’t been as excited about 529 plans myself until recently.

I would advise my clients not to overfund a 529 for their child’s education until 2023. I feel more comfortable advocating that more families use 529 plans in light of a recent regulatory adjustment.

This is particularly true for people who have a strong desire to generate money for future generations.

This is why I previously hedged a little bit on 529 plans and what changed to make them seem like more alluring investment options for my wealth management customers (as well as my own family).

Why We Previously Supported a Split Savings Method

In the past, I didn’t think that 529 plans were the best option for college savings by far, the default option.

Yes, they provide significant tax benefits. However, there are other factors to take into account in order to decide:

In order to achieve your family’s specified goals, determine whether a 529 plan is the appropriate account to utilize and how much to donate to it in comparison to other investing vehicles.

I specifically spoke with my clients the following:

The future is never clear, particularly when it comes to long-term planning. There is still a long way to go until the college years for families with young children. Between now and then, a lot can happen (both within and outside of your personal control).
Prioritizing their own retirement requirements over practically all other objectives, such as funding for schools, is a good idea. While there are several methods to finance an education, most people have only one source of retirement income: the savings they have accrued over the course of their working careers.
If they must utilize the funds in a 529 plan for purposes other than approved educational costs, they may be subject to fines.

We often advised clients who placed a high importance on flexibility to contribute to a 529 plan with some money set aside for college.

The remaining funds designated for a child’s college expenses could be deposited into a brokerage account, for example. Although there are no tax benefits to taxable investment accounts, there are no restrictions on the use of the funds in terms of when, how, or why.

Furthermore, even if the parents chose to utilize a taxable brokerage account to optimize future flexibility or didn’t want to fund the plan themselves, having an open 529 plan permitted other family members to make contributions to the child’s future education.

By using a “split” strategy, the possibility of overfunding a 529 plan was reduced. However, new regulations on a range of investment accounts, including 529 plans, were established with the signing of the SECURE 2.0 Act into law in December 2022, making them more alluring instruments to utilize as a component of a comprehensive financial strategy.

Regulations That Increased Flexibility for the 529 Plan

Upon their first release, 529 plans made it apparent that its primary purpose was to be vehicles for college savings. Withdrawals from the plans have to be used for higher education-related eligible expenses.

Any use of money for purposes other than those listed was liable to taxes and penalties.

The legislation that relaxed the stringent limits restricting the use of funds from 529 plans was not the first to do so, even before the SECURE 2.0 Act.

A few years ago, new law made it possible for families to use funds from 529 plans for private school or grade school expenditures in addition to college costs.

This gave 529 plans more flexibility, but the restrictions that restricted what families could spend from the account on education were mainly maintained.

Families now have even more options for how to use the money they’ve saved into 529 plans, though, thanks to the SECURE 2.o Act. One such technique encourages attempts to build wealth for future generations.

Creating Generational Wealth Using Money From the 529 Plan

The SECURE 2.0 Act allowed you, as the custodian of a 529 plan, to roll over a portion of the funds you saved into the plan into a Roth IRA at a later date.

To be more precise, the beneficiary of a 529 plan that you started at least 15 years ago can roll over the whole amount of the account’s annual contribution cap into their Roth IRA.

(The $6,500 annual maximum for Roth contributions in 2023. In 2024, it will be $7,000. In order to account for inflation, this number tends to rise with time.)

As long as your minor children have earned income this year, you can open and contribute to their Roth IRAs. Similar to 529 plans, you are the account custodian; your child can take over the Roth IRA upon becoming 18 years old.

Families benefit greatly from this flexibility, particularly if a prospective university experience is still a ways off and you’re not sure if your children will attend college at all.

You can contribute to the 529 plan now, and when your child starts working, you can utilize those funds to roll over into a Roth IRA or use them for college expenses.

In either case, you’re accumulating wealth that the following generation will be able to utilize to safeguard their own financial future, which is an important responsibility for any parent to have.

Recall that you have the option to modify the beneficiaries of your 529 plan, which allows you to contribute to the Roth IRAs of several family members.

In a 529 plan, the beneficiary can be switched. That used to allow you to use a single plan to pay for the education of several children.

You can designate a younger child as the beneficiary of the 529 plan and cover their eligible fees if your first child’s expenses were not fully utilized.

If, at some time in your career, you decide to return to school, you can even modify the beneficiary to yourself or your spouse.

With 529 plans, you can still change the beneficiary to another member of your family. This, along with the new regulations allowing rollovers to Roth IRAs, means you could potentially roll over funds from 529 plans into the Roth IRAs of several members of your immediate family (as long as they have earned income that the IRS is required to report).

Using this tactic could be beneficial, depending on your household size and saving habits. The maximum amount that can be rolled over into a single Roth IRA is $35,000, as of right now. This amount cannot be transferred from a 529 plan to the Roth IRA of a single beneficiary.

However, if you are able to modify the beneficiary of the 529 plan, you can still roll over funds in excess of $35,000 if you have one.

After you reach the family member’s rollover cap, you can transfer the beneficiary of your 529 plan to a different earner in the family and carry on rolling over money into their Roth IRA.

By rolling over 529 plan funds into your Roth IRA, you can use this to help fund a child’s education fund, help kickstart their retirement savings, or even make up any shortfall in your own retirement plans later on.

Greater Adaptability Use 529 Plans to Give Families More Financial Power

One of the most important things to remember in this situation is that the 529 plan must be at least 15 years old in order to be eligible for rollovers; if you haven’t opened one yet, this is a fantastic opportunity to do so.

It’s a fantastic prospective instrument that you should include in your future planning because it can help several family members increase their wealth.

Another crucial idea? It’s nice to have all of this information and excellent tactics like this one. However, you still need to go one step further and apply the information to the particulars of your own circumstance.

Not every tactic works in every situation, and what seems sensible on paper might not be practical in real life. It’s a good idea to consult your own financial advisor before implementing any ideas or methods to ensure that they make sense.

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Kim Kardashian Reveals Her Secret Lip Tattoo On ‘The Kardashians’

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Kim Kardashian

Kim Kardashian helps plan hairstylist Chris Appleton’s Vegas wedding weekend, and the subject of tattoos comes up. In a twist no one saw coming, Kim, 43, has some shocking news to share with the world. In the November 9 episode of The Kardashians, Kim shows off her secret lip tattoo. Kim explains that she got the lip tattoo after hosting Saturday Night Live on October 9, 2021.

She pulls down her lip to show Chris the tattoo, which is a simple infinity symbol on the inside of her lower lip. Kim and all of her friends got matching tattoos after she made her SNL hosting debut. While her friends got the infinity symbol on their hands, Kim decided to get hers on her lip!

Kim hosting SNL in 2021 has proven to be one of the most memorable nights for the reality star. That’s the night her romance with Pete Davidson first sparked. Kim and Pete dated from October 2021 to August 2022. While they were dating, Pete got “my girl is a lawyer” tattooed near his collarbone and “Kim” inked on his chest.

Kim Kardashian at the 2023 CFDA Fashion Awards. (Matt Baron/BEI/Shutterstock)

Kim also reveals videos she took of the night she got her lip tattoo. La La Anthony was by Kim’s side and holding her legs as the tattoo artist inked up Kim’s lip. “I finally put a bumper sticker on a Bentley,” Kim says to Chris.

The SKIMS founder admits that “no one knows” about her tattoo, and she even forgets about it most of the time. Kim does admit that she’ll sometimes freak out when she sees the black ink on her lip when she’s flossing her teeth.

Back in 2009, Kim famously talked about her lack of ink during an interview on The Wendy Williams Show. When Wendy Williams asked Kim about having no tattoos, Kim replied, “Honey, would you put a bumper sticker on a Bentley?” Well, times have certainly changed for Kimmy K!

Kim plans the most epic wedding weekend for her longtime hairstylist and Lukas Gage. She surprises them with a special Shania Twain performance and even officiates their ceremony. New episodes of The Kardashians premiere Thursdays on Hulu.

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‘The Golden Bachelor’s Faith Martin Was In A Rut Before Turning 60. Here, She Reveals What Changed

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Martin has vowed not to look back or wish she had her revelation sooner. She will not turn back, no matter what happens with Turner, 72. Rather, she’s accepting the lessons the challenging years have taught her.

“My face is covered in numerous scars. Although I haven’t been kind to myself, things are as they are,” she remarks. “I’m too busy right now enjoying life, working, and doing the things I love.” We feel happiest when we pursue our passions. Perhaps we also appear younger.

In the latest episode of Drop the Routine on Glamour, Martin shares her self-care routine, particularly in light of her experience with skin cancer. She also discusses her willingness to discuss injectables and her go-to moisturizer.

Since I developed skin cancer on my nose last year, sunscreen is the one thing I’ve become fervent about. Because of the divot that resulted from the biopsy on my nose, I always advise people to use sunscreen. Unfortunately, a lot of sunscreens have an odd fragrance, cover your face entirely in white, and make you appear strange. However, Superscreen Daily Moisturizer SPF 40 from Supergoop applies easily and transparently. I also use the tinted moisturizer with sunscreen from Supergoop!. After that, I just applied bronzer. I only use bronzer; I don’t use foundation.

Frank’s rosehip oil body as lotions frequently feel [too] thick on the skin. And I use coconut oil—the cooking kind—if I’m not using this. I simply grab the jug. I started using coconut oil since the thick lotions didn’t feel right and I would get dry patches while I was outside in the sun. I would simply grab some olive or coconut oil and apply it to myself. I also wrapped it around my cuticles. I always apply Nivea to my neck as well.

We frequently have the opportunity to perform endorsement-type work in radio, so I do advertisements for the New U Women’s Clinic & Aesthetics in Washington. In 2018, they requested that I do an AquaGold microchannel microinjector treatment. Your own blood platelets are extracted, and Botox and filler are also injected. They applied pressure to my entire body. And I promise that as soon as they completed that, I became aware of a change in the texture of my skin. Because I have complete faith in Dr. Rachel Fidino, I’m fine if she gives me a little prod here and there. Twice a year, I have Botox, specifically for the wrinkles that run between my eyebrows. You’re sitting there thinking to yourself, “Why am I poking myself and hurting my face with this?” However, after four days or so, you say, “Yes, I really love this.”

The New York Times best-selling book The Big Bang Theory: The Definitive, Inside Story of the Epic Hit Series was written by Jessica Radloff, senior West Coast editor for Glamour.

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Zac Efron Would Be ‘Honored’ To Play Matthew Perry In Biopic

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Matthew Perry Dead at 54 Ian Ziering Mira Sorvino and More Stars React 746
Zac Efron is hoping to pay tribute to his late co-star Matthew Perry in the future.

The fact that he is no longer with us still breaks my heart, 36-year-old Zac Efron said to Extra on Wednesday, November 8.

Perry wanted Efron to portray a younger version of him in a potential biopic, according to his friend Athenna Crosby, who made this revelation in an interview with ET Canada following the Friends alum’s passing.

“I felt incredibly honored. On Wednesday, Efron stated, “To do it would be extraordinary.” “We’ll observe the situation.”

Crosby claims that Perry stated he “was gonna ask [Efron] soon” about the potential part.

Following his death at the age of 54, actor Matthew Perry is being mourned by celebrities. Perry passed away on Saturday, October 28, apparently from drowning. After receiving a call about a person experiencing cardiac arrest, police reportedly discovered the actor unconscious in a bathtub at a Los Angeles residence. Ian Ziering, a collaborator with […]

Efron continued, “To think he was thinking of me for that role, I mean I would be honored to do it, to be honest,” in a separate interview with Entertainment Tonight on Wednesday.

“I had the best time of my life working with him,” Efron continued, referring to Perry as “the best guy in the world” and telling the publication.

In the 2009 film 17 Again, Efron portrayed Mike O’Donnell, Perry’s younger role.

On April 14, 2009, in Hollywood, Michelle Trachtenberg, Zac Efron, Leslie Mann, and Matthew Perry attend the film’s premiere. Getty Images/Kevin Winter

On October 28, Perry’s death was announced following what seemed to be a drowning at his Los Angeles residence. In a statement released on October 30, the Los Angeles Fire Department said that he was discovered “unconscious in a stand-alone jacuzzi.”

The statement went on, “Firefighters removed the man from the water upon their arrival after a bystander had brought his head above the water and gotten him to the edge.” Sadly, a quick medical examination found the individual had passed away before first responders could arrive.

Before a toxicology study is completed, Perry’s cause of death has not been disclosed.

Crosby exclusively told Us Weekly on November 1 that Perry “was in a good state of mind” prior to his death. In the final days before his passing, she spent time with the actor.

“He was quite happy to be hanging out and was talking the entire time. He was “talking about his life and sharing with me funny stories about his time in the industry,” she continued, calling it “great.”

After becoming well-known for playing Chandler Bing in the television series Friends, Matthew Perry never hesitated to talk openly about his personal troubles. For a period, when [fame] occurs, it’s similar to Disneyland. This sensation of “I’ve made it, I’m thrilled, there’s no problem in the world” lasted for me for almost eight months. [..]

He was talking about how happy he was to have a second act and how his acting goals had been hampered by problems, but he had overcome them all and was eager to get back into it full force, according to Crosby.

Along with having a great acting career, Perry was committed to supporting people who battled drug addiction.

“I don’t want Friends to be the first thing that people talk about when I die,” Perry stated in a November 2022 audio interview with Tom Power’s “Q.””I want to live the rest of my life proving that it should be the first thing mentioned.”

Our Matthew Perry-themed special issue is now available.

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