Danielle L. Schultz, CFP®, CDFA, Author at FIGuide

That other retirement account: Financial planning for HSAs

Jun 18 2019

Health Savings Accounts (HSAs) may be the best deal out there, if you can get it. All of us like to beat the tax man, right? HSAs are what’s known as triple tax free: you get a deduction when you put money into the account, the account grows tax free, and as long as you make withdrawals for allowable health care expenses (pretty easy to do), you don’t pay any tax on that either. They’re like a traditional IRA or 401k going in, and a Roth coming out.
But like many good things, there are a few problems and things …

Don’t lose everything…financial planning for the unexpected

Jun 11 2019

I love those articles that tell you everything you’re doing is wrong. Lifehacker had a decent one yesterday on how to wash your hair, swallow pills, do laundry, etc. One of the things you may be doing wrong is your will.

You do have a will, right? If so, you’re the exception to about 75% of the people I see. I see it so often that I have developed a boilerplate recommendation to include in my client reports. So don’t pay me to tell you what you already know! Get a will, health care advanced directive, and powers of attorney …

Ugh! UTMAs and UGMAs

Jun 08 2018

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 …

Don’t make this mistake with your 401K

May 31 2018

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

Financial planning and college acceptance

Mar 22 2018

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 …

Author - Danielle L. Schultz, CFP®, CDFA