Money Spent Well

Obama and McCain finally agree on something and they are saying the same things. College is expensive and is a growing problem. It’s funny, it’s more political rhetoric from both without concrete plans or actions. Both are offering solutions that match their ideals and political styles. McCain is acting and working on a short term fix by advocating a “continuity plan” to ensure that in the face of the global banking crisis college student loans will not be disrupted this fall. Obama is talking about hope and change and change and hope. Obama is hoping his plan for creating the American Opportunity Tax Credit will change the situation. This universal and fully refundable credit will ensure that the first $4,000 of a college education is completely free for most Americans. With the average college costing over $80,000 the $4,000 is more hope and change rhetoric.

This post is coming off like an anti Obama pro McCain rant. That is not my intention. I want to rant about them both equally. They are both terrible. We are left with the “vote least worst” option yet again. McCain is an empty carcass searching for a job and a title. He used to be a man, he used to have principle, he had a point of view that he threw away and flip flopped on to get the nomination. Those are not the characteristics of a leader. A leader stands up for what he believes in and leads according to his beliefs not what pollsters say. And Obama is as empty and vapid as the new McCain is. “Hope, change, change, hope” it’s B.S. It’s just a marketing campaign. He’s no leader, he lacts vision and historical perspective.

Send a message vote third party. Get another choice on the ballot. The dems and repubs have created a duopoly that they have erected nigh impenetrable walls around. It’s extremely difficult to get on the ballots of the states and the debates are closed. We need more choice, we need a leader. Vote Nader to send a message and automatically get a third choice on the ballots for next time. People hate Nader but he continues on his quest because he is a man, he is a leader. He is doing what he believes to be right. Neither candidate possess the courage to lead the way Nader does.

But I digress, neither candidate offers real solutions for the college costs and college savings dilemma. That’s not such a bad thing. We have too much government and taxes as it is and we don’t need the government to be “daddy” yet again and take care of us. It’s better to let people be adults and be responsible for themselves. Get out of credit card debt, start saving for retirement, start a 529 college savings plan and send a message to a government gone awry on how to be fiscally responsible.

Tags:   529 Savings Plan · McCain · Nader · Obama · taxesNo Comments.

Dear Twitter,

We need to talk. First let me say it’s not you, its me. I’ve changed, I’ve grown and you haven’t grown with me. When we first started off together it was fun and frivolous and I really enjoyed your company. But it’s time to grow up. I’ve got a new startup (www.freshmanfund.com), a wife, an apartment, bills, etc. The point is I have an adult life that you don’t fit into right now. Besides our relationship is not healthy, there is no quid pro quo. I give you content and users but you don’t really give me anything. My blog helps promote my startup, Facebook helps me connect with my friends, linkedin helps me connect with my professional network and you Twitter, your vapid, empty and I just don’t have the time for you anymore. I don’t know how many more times I can read about someone thinking about eating lunch or sitting on the tarmac waiting for take off, it’s nuts.

I’m sorry Twitter I’ve been a little harsh and like I said it’s not you it’s me, I’ve changed. Your great and I’m sure some people find what you offer very valuable like reading about others walking down the street or getting alerts on when people are tired. It’s not for me though. Let’s keep in touch. I would like to remain friends. Who knows in the future we may come together again and be of the same mindset but right now I have an adult life to live.

Yours truly,

Jefffrese

Tags:   break up · relationship · twitterNo Comments.

All children born healthy with ten fingers and ten toes have all the potential in the world. Each one of the could be an astronaut, a fireman or President of the United States of America. And most likely all of them will partake in some form of higher education. The higher education could be a trade school or even Harvard. As long as we are dreaming big for our children let’s dream of a full ride to Harvard for our children. On average though your child’s tuition won’t be free, it will cost $300,000 in eighteen years.

As parents we need to be prepared for that eventuality and we need to start saving for our children’s higher education from birth till they leave the nest. It’s our resposibilty as parents to provide opportunities for our children, higher education being one of them.  Open a college fund for your child as early as possible. Even if your child is still just a twinkle in your eye you can open a 529 college fund in your own name and transfer it to your baby upon arrival.

Dream big dreams for your children and open a 529 college fund for them while they are still small. If your dream comes true and your child gets a full ride to the school of his choice your 529 will not be wasted. You can transfer your 529 college savings plan to a needy family member or use it for your own dreams on a Semester At Sea or culinary school in Italy. Both qualify as higher education and I hear they are dreamy.

Tags:   529 college fund · children · fres · tuitionNo Comments.

A 529 is like free money because you earn tax free gains on the growth of your investments. It feels like free money because it’s one of the rare times in life where Uncle Sam doesn’t take his cut of your income. When we are overtaxed in all aspects of our lives not being taxed feels like some incredible gift. Should we really be feeling this way or should we hold our government responsible for it’s fiscal irresponsibility? I’m not looking forward to voting least worst again.

It used to be you would vote republican if you wanted your taxes lowered. After eight years of republican rule we have more taxes than ever. I can’t vote democrat in the next election because Obama has already said he will raise taxes. We are all paying too much in taxes. It doesn’t matter if you make $20,000 or $200,000 you are paying too much. The solution especially in a down economy is not raising taxes, it’s lowering them. We need more money in the hands of the people who hold this country up on their backs, the middle class.  Taxes need to be lowered and the government needs to be more fiscally responsible.

I read a-lot of personal finance blogs and they all talk about getting rid of your debt and adding to your savings. It’s all about fiscal responsibility. We need to hold our government accountable. The government needs to be held to the same standards we hold for ourselves. Neither candidate is talking about getting rid of the deficit and reducing the debt. Neither has mentioned anything about wasteful government spending. The powers that be, the elected officials want to keep the pork because it helps them keep their jobs because they get to use our tax money to give favors to special interest. The whole system is a mess. We need a new party to vote for who acts in the best interest of the people not themselves.

But I digress, we are overtaxed so it would behoove you to take advantage of any tax breaks you can. When you can invest money and have it grow for over eighteen years and use the money without paying capital gains on it, you would be cheating yourself not taking advantage of it. Add to the tax free gains the fact that the money is being used for higher education and now the free money is good money. 529s are a way of doing well while doing good.

Tags:   529 College Savings · 529 Tax Advantages · College Fund · Obama · Tax Free · taxes1 Comment

Tags:   College Savings · Saving For RetirementNo Comments.

With gas costing over $4.50/gallon, food prices on the rise, utilities on the rise and the value of the dollar shrinking it’s hard just to get by let alone put money away for the future. How is one to save for college and save for retirement when there doesn’t seem any money left over for savings? Frugal Dad has the answer, he wrote a great article with 75 Tips to Survive a Down Economy (http://frugaldad.com/2008/06/16/75-tips-to-survive-a-down-economy/)

Some of my favorite tips from the article are #10. Do not buy new cars - Buy a used car, and drive it until the wheels fall off, #3. Scale back the cable and #61. Use shredded credit card invitations as mulch in the garden.

Instinctively I found myself already doing half the list. Now I need to be disciplined and work on the other half of the list. Some tips will be easy like scaling back on cable, it’s summer and there is nothing on TV right now anyway.  Others will be more difficult like the home haircut tip, I’m just too vain for that. I’ll comprimise and just not cut my hair until this recession is over. Ofcourse with the way the economy is currently going I’ll probably wind up looking like Tom Hanks in Castaway.

Tags:   Saving · Saving for college · Saving For Retirement1 Comment

Tags:   Personal Finance · Saving Secret1 Comment

You owe it to your children and grandchildren to invest your tax rebate check into a 529, after all they are paying for your rebate check. You owe it to them, it’s like quid pro quo, they pay for your rebate and you pay for their college.

As if newborn babies weren’t in enough debt already. By the time a baby takes his first breath he’s $30,000 in debt thanks to massive deficit spending resulting in massive debt growth. How much of our GNP is being wasted on interest on the debt? Suze Ormond needs to be the new Fed chairman.

Do the right thing and pay your unborn children back for their generous gift of “free money” and invest your rebate check into a 529 college savings plan for them.

Tags:   529 College Savings · Tax Rebate1 Comment

A-lot of people are looking at their 529 statements and seeing negative returns. The statements look like sagging plans not saving plans. There will be ups and downs in our cyclical economy but if you opened your 529 early and hold it for 15 years you will see a gain in your savings. 529 investing is like all investing, historically speaking day traders will lose money while sensible long term investors will earn money.

When your baby is born open an aggressive age based portfolio. Put money in consistently over the next 18 years and you will see a return on your savings/investment. On average if you put in $200/month you will save 60% of the costs of the average college.

So do what the experts advise - start early and save often.

Tags:   529 College Savings · 529 InvestmentNo Comments.

529 Plans can’t help you save, they help you earn. Just having a 29 plan will not help you save. Saving takes hard work and discipline. Just having a 529 plan will not help you save, that would be like the tail wagging the dog but it will help you earn. You need to invest in the 529 regularly.  The growth of the money you save is all yours because it is tax free if used for higher education. Tax free revenue is a rare thing in this world that should be taken advantage of.

What can help you save is your friends and family. They can contribute to your 529 savings plans online using Freshman Fund. Here is an article in Investment News on using Freshman Fund for birthday gifts. http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20080623/REG/634810996/1017

Tags:   529 College Savings · Charles Paikert · College Fund · Investment News1 Comment