Author - Danielle L. Schultz, CFP®, CDFA

1
Ugh! UTMAs and UGMAs
2
Don’t make this mistake with your 401K
3
Financial planning and college acceptance
4
Financial resolutions for 30 and 40 somethings
5
Amazon, Whole Foods, and you

Ugh! UTMAs and UGMAs

I’m not sure why anyone has these accounts anymore, but they do. I mostly see them during divorces, where one spouse has tried to transfer money to the kids in hopes of keeping it out of the divorce joint property. Technically, these accounts are considered property of the children (not marital), but as with so many other financial issues, it’s largely up to what the attorneys are able to negotiate.

Funding these accounts is a pretty poor idea in most cases, however. What you’re doing is putting all the money in the kid’s name: they’re entitled to it at 18 …

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Don’t make this mistake with your 401K

It’s no secret that I love Roth IRAs. Don’t tune out because you think you make too much money to have one!

Let me count the ways they’re great:

  • No required minimum distribution at 70 ½, so you can leave the money to grow into old age if you wish.
  • Grows tax free and you pay no taxes on any of it when you withdraw after 59 ½.
  • Can always withdraw your contribution tax free.
  • Can be used for medical emergencies and a $10,000 down payment on a first house (but don’t—leave it alone for retirement!)
  • Your heirs will pay
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Financial planning and college acceptance

If you have a senior in high school, this is an anxious time. College acceptances and rejections are rolling in, and it’s tough. It’s an emotional drain and the decision can have a huge impact on your finances well into retirement. So, some points to ponder:

Accept a college you can afford. Unless you have significant savings, current high income, or significant financial aid, a state school is going to be most people’s best financial option. The cost of attendance at private schools has become breathtaking—four years at Northwestern is going to cost around $300,000. Four years at the University …

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Financial resolutions for 30 and 40 somethings

I’ll control the amount of money I spend on a house. What lenders will loan you is not necessarily what you should spend. Your housing decision drives the costs of many other things in your budget: upkeep, insurance, repair costs, and maybe status decisions such as where you send your kids to school and what car(s) you drive. Once you commit, it’s a fixed cost that isn’t easy to reduce. Keep your housing cost (mortgage+interest+taxes+homeowner’s insurance) to 28% or less of your gross and you’ll reduce stress and free up money for savings.

I’ll increase my retirement savings with every

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Amazon, Whole Foods, and you

The takeover of Whole Foods by Amazon was approved this week, and we’re told that by Monday we could be seeing some big changes in the whole grocery business.  This has occasioned an awful lot of clothes-rending on the internet, and even Robert Reich (who I normally respect) has weighed in on what a terrible thing this is. Now Reich is a brilliant guy, and I’ve never been Secretary of Labor (although I’m pretty confident I could do a better job than the current incumbent), so I’m only going to argue here out of my own experience. I think the …

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