Saving for college is an interesting phenomenon. Because the time crunch happens a lot sooner due to the fact that your kids, if born, are typically less than 18 years away from college – people feel the need to save in a 529 early. This may be despite having a ton of student loan debt or not saving enough for their own retirement. In this MMM episode, we answer the important questions you have about funding a 529 plan, including whether you should fund one at all!
What You’ll Learn:
In this week’s episode of Money Meets Medicine: 529 Plans for College Education you’re going to learn:
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How to anticipate what you have to save with the rising costs of college
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All of the things that can be covered with a 529 plan
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If different options, such as loans or scholarships may be a better route for you
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What to do if your child gets a full ride scholarship
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How 529 plans vary from state to state
Resources from the Episode:
Vanguard College Cost Projector
Can My IRA Be Used for College Tuition?
How much is your state’s 529 plan tax deduction really worth?
How Should I Save For My Kid’s College? Plus a 529 Plan Hack
This Episode’s Sponsor
This episode’s sponsor is Earnest, a student loan refinancing company. If you refinance through the link provided on this podcast, you will receive a $500 cashback bonus for doing so, and you will also be supporting the Money Meets Medicine podcast when you do that. It is a win-win-win. You can find out more information by visiting earnest.com/moneymeetsmedicine.
Listener Question of the Week:
Today’s listener question comes from Cathy Carroll,
“Can you discuss the concept of marginal benefit? (i.e. lawn care, cleaning services, etc)”
Each episode, we are going to start including listener questions as they are provided to us. So, if you have a specific question you’d like answered on the podcast reach out to us! Email [email protected] or [email protected]
TPP
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Following the Financial Crowd
Have you ever left a sporting event, following the crowd, and suddenly realized you were walking the wrong way? What if I told you this phenomenon has a name, and it impacts your money, too?
Understanding our own behavior when it comes to finance is essential because it helps us mitigate wrong-for-us decision making around money. Unless you know these roadblocks exist, you can’t do much to stop them from derailing your financial goals.
Last week, we shared why human behavior matters for our financial lives by taking a look at the first 5 out of 10 psychological phenomena that can (and do) affect your personal finance goals: greed, fear, ego/overconfidence, loss aversion, and analysis paralysis.
This week, we’re diving back into behavioral finance (one of our favorite topics) to share five more types of unchecked human behavior that can sabotage your journey to building the wealth you want.
Greed, FOMO, and Bad Investments
Despite our best intentions, certain emotions can keep us from building wealth. After many years arming physicians with the information they need to achieve financial wellness, I had a significant realization.
Information is one thing – behavior is another.
As the saying goes, money is 80% behavior and only 20% math.
Not only do I want to share important information about personal finance, I also want to help you recognize how certain behaviors can (and do) affect your finances.
Drawing from one of the classic books about investing, let’s go over five common behaviors that could be keeping you from achieving your financial goals.
How Doctors Can Get Good Financial Advice
Many doctors and high-income professionals hire financial advisors for any number of reasons. Either they’re too busy to handle their finances themselves, they don’t really know how to invest, or they want an expert on their side to make sure they’re on the right track.
So allow me to say from the start: I’m not against financial advisors, but I am against doctors (or anyone, really) being overcharged for bad advice.
There’s no shame in asking for help – you just want to get the help you need at a fair price.
You should be equipped enough to vet and evaluate your financial advisor so you’ll know whether they’re working well on your behalf. How can you be as confident as possible they’re acting in your best interest? This episode will help you find out.
Are you ready to live a life you love?
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