You coached Little League this spring.  What did you take away from that experience?

Coaching my 5-year old son’s T-Ball team was an amazing experience.  At the beginning of the season the kids had no idea of what the game was about and 10 weeks later they were making plays, etc.  It was all about having fun, but I kept thinking where are these kids going to get jobs when they grow up?  What will be left of the American Dream for them – where kids always did better than their parents?  I think life will be harder and more competitive for them, just because the world is a more competitive place, and I think that parents will have to do as much as they can to get them the educations they need to survive and excel in the future as well as leaving as much of a legacy as they can for them.

Should Parents start Section 529 College Savings Plans for their children?

Section 529 College Savings Plans are one of the most attractive vehicles for saving for children’s college and graduate school expenses.  While there is no federal tax deduction for contributing to these plans, there might be deductions available against state income taxes (for example, there is in New York).  However, the growth of the investments within the plan is tax deferred.  In fact, if the funds are ultimately used for college or graduate school expenses, there is no income tax whatsoever on these funds.  Understanding the plans is not easy because each state has its own plan, usually in conjunction with a mutual fund company which features its products in that plan.  You do not have to be a resident of the state whose 529 College Savings Plan you decide to invest in (although, as mentioned above, there may be some tax advantages for certain state residents).  For example, New York state has two plans!  Parents should speak to me about how to make these investments or research these plans carefully on their own.

 

 

Legal Disclosure:  For more information about any Section 529 College Savings Plan contact the individual state’s plan provider in order to obtain a copy of the Program Description which includes investment objectives, risks, expenses and other information.  Read and consider the Program Description carefully before investing.  If you are not a taxpayer of the state offering the plan, consider whether your home state or the home state of the designated plan beneficiary offers any state tax benefits before investing.