#abacuswealth

[abacuswealthcom]

A six-step holistic approach to financial planning is the core of our financial advisory service. Our financial planner can assist you in identifying your financial strengths and limitations, which will serve as a foundation for making solid financial decisions in the areas of tax & retirement planning, estate & investment planning.

[handypayday]

No Checking Account Loans - The DO’s and DO-NOT’s of Saving For College

No Checking Account Loans - Save for college Start saving for college as soon as you can, but do not let those savings interfere with your other financial priorities.

In today's competitive economy, a college degree has become almost essential for a middle-class lifestyle. At the same time, the cost of college has multiplied to outrageous levels. What cost a few thousand dollars in the 70's now costs tens of thousands of dollars a year.

 But until this changes, many parents who want their children to have a chance to lead a comfortable life (and which parent does not?) Will have to find a way to cope with the incredible costs of college education. .

 If you have or intend to have children, you probably want to help them start their working lives in the most advantageous position possible, and that could mean starting a college fund. But how can you do that when you have enough trouble paying for things here and now?

 DO NOT put savings for the university ahead of your other financial priorities.

Before you can worry about the future, you need to worry about the present. And that means figuring out how you can balance the vital needs of the present with the needs of the future.

 "Many people want to start planning their newborn's education right now and, if possible, I think it's fantastic," said Laura Morganelli, CFP and Financial Advisor for Abacus Wealth (@AbacusWealth ). "However, when I work with clients, I want to make sure they are preparing for overall success and not just focusing on a specific goal.

 "Most people flew and watched a flight attendant review the safety instructions. One of these being, in an emergency, oxygen masks must be released, to put on your own mask before putting on your child's mask. The same can be said for financial planning. Before I start funding an education plan, I want to make sure that an emergency fund (three to six months of expenditures) is in place and that an action plan for retirement savings has been discussed.

 (To learn more about the importance of emergency savings, check out our blog article: Want to avoid loans without a credit check? Build an emergency fund.)

 "More often than not, a discussion of goal prioritization is the best way to determine when to start funding the child's education fund.Saving too much for educational goals and allowing retirement to go down the drain can it means working longer than you would have expected, and understanding how each decision affects other aspects of your financial life in advance is the best way to do it the right way."

 DO NOT put savings for college over savings for retirement.

Daniel Brown (@danielbrownsf), founder of Miles Brown Asset Management, offered similar advice on paying attention to his own financial needs. He put a special emphasis on saving for retirement:

"Parents and grandparents are often eager to ensure that their new bundle of joy has the resources they need to pursue their dreams as they get older. The problem is that they make saving for the child's education a priority and they give up the need and the responsibility to save for their own retirement. I often make the following comment or a variation of it: "There are scholarships, grants, loans and financial aid available to a student who wishes to pursue higher education. However, aside from Social Security, there are no scholarships, grants, loans or financial aid provisions available for your retirement. "

 "The fact is, even though you should start saving for a child's education as soon as possible, this particular savings goal should be contingent on your family's emergency fund and your own plan." pension saving. Most Americans can save at least $ 5,500 either in a traditional IRA or in some cases a Roth IRA. If their employer so provides, they can also save up to $ 18,500 in a 401 (k). At the very least, if their employer provides a 401 (k) match, they should contribute enough to ensure the full match. Often, these steps are not taken when the question regarding savings for the university is made. "

 But let's say you have your own finances in order. When should you start investing in this college fund?

 Start saving for the university as soon as possible.

As with most things you need to save, the sooner you can start comfortably, the better. And this can be all the more true when it comes to saving for the university.

 The easiest way to save money for college is to open a 529 College Savings Plan. These are investment accounts designed with the express purpose of, well, saving for the university, as its name suggests. These are state-sponsored plans, so the details may vary depending on where you live. You can go to the SEC's website for more information

 "In most states, particularly in California, the main advantage of the 529 College Savings Plan is to increase the earnings (growth) of the fund so that when the beneficiary starts to retire for higher education, the accumulated income can to be removed. -Free base, "advised Brown," In general, for large gains to accrue, the portfolio needs time to grow and, unless a lump sum is paid, it takes time for Regular systematic contributions are made, and the sooner you start saving, the more gains can accrue over the time horizon of the recipient. "

 It is also important to start early because you may be storing relatively small quantities. Since you still need to eat and pay the rent, the actual amount you put into the savings plan will be only what you can. You should consider taking measures like meal planning so that you spend less on essentials.

 (To learn more, check out our blog post: Bad Credit Helper: How to Save Money Through Meal Planning.)

Think about saving for college by using other types of accounts.

But you are reading this on the internet. So it's just that we offer you One Weird Trick.

 "As a rule, a Roth IRA is considered a retirement savings plan," said Jacob Dayan, CEO of Community Tax (@communitytaxllc), told us. "If you choose to withdraw money before the age of 59 and a half, most of the time you will pay an early distribution penalty of 10% on the amount you withdraw, however, it is a little known fact that if you withdraw money in order to pay the graduate fees, you do not have to pay the 10% early distribution penalty, which turns a Roth IRA into a great vehicle to save money for the fund. Your child's college It is important to note that you will have to pay any deferred taxes due, as with any IRA withdrawal, but the 10% penalty is waived. "

 Phew! Did you understand all that? A lot of these tips could help you, even if you are another parent looking to pay for an education, whether you are a half sister or a cool uncle.

 Paying for college can be daunting. But if you wait too long, you will not be stressed anymore when the time comes. It is also important to consider which higher education option might make the most sense for your child, but it is a discussion for another time. 

[abacuswealthcom]

Expats who are currently working, retired, disabled, or deceased may benefit from international Social Security agreements. We worked both in the United States and abroad but are now retired, disabled, or deceased, bilateral agreements may provide coverage for the worker or the worker's family members.

[abacuswealthcom]

You are able to avoid needless estate or inheritance taxes, as well as the costs and delays of probate, and strategically directing assets to your favorite charity, can help your family survive with your death or incapacity. Make a plan for your future today.

[abacuswealthcom]

According to the IRS page, Social Security Tax Consequences of Working Abroad, dual coverage, and multiple contributions (taxes) for the same job are removed under a Totalization Agreement.

[abacuswealthcom]

The most common financial mistake is investing in a foreign mutual fund. We can assist you with PFIC Compliance for Foreign Mutual Funds, as well as PFIC Compliant Investments. We guide you to invest in the right place to avoid the extra tax.

[abacuswealthcom]

Our cross-border financial planning and taxes difficulties including, the complications amplified. AWI acts as your access to professional financial services. Our decades of expertise and our network of international experts in many financial, tax, and legal disciplines will help you.

[abacuswealthcom]

Our goal is to provide financial assistance to you in need by removing limits on accessing funds through these qualified retirement plans. Such as All Required Minimum Distributions waived, Premature Distributions on Retirement Accounts were Penalty-free, and Recontributing retirement plan distribution taken from corona virus purposes.

[abacuswealthcom]

Abacus Wealth provides tax saving advice to US Expats. We provide you with different strategies to save your tax. We reduce the amount of tax you pay to the applicable tax authority as a Tax Benefit. Our service will assist you in making the best financial decisions and saving money on taxes.

[abacuswealthcom]

Our goal is to build a trust-worthy relationship by providing knowledgeable and professional financial advice based on experience, ethical values, and quality. We offer the right advice for investment management, tax-saving strategies, retirement planning, and estate planning.

[abacuswealthcom]

We provide you with a correct plan to reduce excessive tax and compliance charges, from ordinary income to investment income and estate or inheritance taxes. We resolve any tax-related concerns and provide you with the most appropriate financial approach.

[abacuswealthcom]

A small number of U.S. brokers are still interested and ready to engage with U.S. citizens in other countries. This is especially true when they are assisted by a seasoned cross-border financial advisor who may perform further due diligence on their client.

[abacuswealthcom]

Come to Abacus Wealth to formulate a plan to optimize your wealth without hassle. Our experts hold years of experience in optimizing people’s health. Thus, they know about peculiar detailing that you should focus on.

[abacuswealthcom]

An eligible person may claim the foreign earned income exclusion for self-employment income generated in a foreign country. The exempted sum lowers your normal income tax but not your self-employment tax.

[abacuswealthcom]

Whether or not you don’t recontribute the cash within this period, you have the option to spread out the income taxes paid for over three years without being penalized and make extra contributions.

[abacuswealthcom]