TUG MEMBERS: Joining TUG does not automatically register you as a user of the TUG Bulletin Board. You must register yourself.


*ads are disabled when logged in as a member*
  1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
  2. The TUGBBS forums are completely free and open to the public and exist as the absolute best place for owners to get help and advice about their timeshares for more than 25 years!

    Join tens of thousands of other owners just like you here to get any and all Timeshare questions answered!
    Dismiss Notice
  3. TUG has now saved timeshare owners more than $13,000,000 dollars just by finding us in time to rescind a new Timeshare purchase! A truly incredible milestone!

    Read more here: TUG saves owners more than $13Million dollars
    Dismiss Notice
  4. Sign up to get the TUG Newsletter for free! Join tens of thousands of other owners who get this every week! Latest resort reviews and the most important topics discussed by owners during the week!
    Dismiss Notice
  5. TUG is trying out a new program that will trade you a TUG membership for a Timeshare resort review if you are an expired member, or even just a guest here on the forums!

    Read more here
    Dismiss Notice
  6. Our official "end my sales presentation early" T-shirts are available again! Also come with the option for a free membership extension with purchase to offset the cost!

    Read more Here
    Dismiss Notice
  7. Follow the TUG Member Banner as it travels the world on vacation with Timeshare owners! Also sign up to get the banner sent to you so you can submit a photo of your vacation with the banner to share with TUG! Banner Thread
    Dismiss Notice
  8. TUG has now joined Priceline.com as an affiliate!

    Members and guests who book air travel, rental cars and even Cruise Vacations thru TUG's priceline links will now support TUG in the process!

    Read more here
  9. A few of the most common links here on the forums for newbies and guests!
    Dismiss Notice

Parents Are Learning a Harsh Lesson With 529 Savings Plans

Discussion in 'TUG Lounge' started by MULTIZ321, Dec 28, 2018.

  1. MULTIZ321

    MULTIZ321 TUG Member

    Joined:
    Jun 6, 2005
    Messages:
    17,726
    Likes Received:
    2,789
    Trophy Points:
    598
    Location:
    FT. LAUDERDALE, FL
    Resorts Owned:
    BLUEWATER BY SPINNAKER HHI
    ROYAL HOLIDAY CLUB RHC (POINTS)
    Parents Are Learning a Harsh Lesson With 529 Savings Plans
    By Amanda Tarlton/ News/ Fatherly/ fatherly.com

    "Because of a huge downturn in the stock market, several American families are worried about their 529 savings plans. But don't worry. There's still hope.

    Americans who are funding their child’s college with a 529 savings plan have taken a hit lately due to the recent downturn in the stock market. But financial experts say there are ways to avoid further losses with proper planning and know-how.

    Thanks to benefits like tax-free withdrawals and state income tax deductions, 529 savings plans have become increasingly popular. In fact, the amount of money invested in 529 plans in the United States reached an all-time high in 2018 at a staggering $328.9 billion spread across 13.6 million accounts.

    So how can parents protect their funds during a down market? 529 College Savings Plan Consultant Vince Sullivan of SavingForCollege.com says that the best option is to set up an age-based account, where the money is invested more conservatively the closer the child gets to college age.

    “With an age-based approach, risk is automatically reduced at specific age / years-until-enrollment intervals, from equities to fixed income securities to money market type portfolios,” Sullivan says. “The sooner [parents] need to access their money to fulfill a prior obligation (like college), the less risk that should be taken with that sum of money.”....."

    [​IMG]
    Pexels



    Richard
     
  2. dougp26364

    dougp26364 TUG Review Crew: Veteran TUG Member

    Joined:
    Jun 6, 2005
    Messages:
    12,561
    Likes Received:
    531
    Trophy Points:
    448
    I get tickled at the news media. This story has been around every time the market dips or drops. The same can be said for ANY investment goal, including retirement. And yet, so many people ignore this advice and leave their savings in higher risk investments trying to get the biggest return, which also comes with the biggest risk.

    I can’t tell you how many of my co-workers are crying about their 401K’s taking a hit, even though they have decades before they retire. Most want to move their money to lower risk investments or, sell when they’re plans are at a low point, then they’ll shift them back when the market corrects itself or, buy when their plans are at a high point.

    Regardless of how many times this story, or others like it, might run, people still make the same investment mistakes.
     
    artringwald and x3 skier like this.
  3. bogey21

    bogey21 TUG Member

    Joined:
    Jun 8, 2005
    Messages:
    7,133
    Likes Received:
    1,866
    Trophy Points:
    449
    Location:
    Fort Worth, Texas
    I set up 529s for my 3 Grandkids. They are pretty much invested 80% Age Based and 20% quasi Fixed Income. Balances in all increased during 2017 but only because of my monthly deposits into them. Earnings were flat to slightly negative. I hasten to add that earnings in prior years were great...

    George
     
  4. artringwald

    artringwald TUG Member

    Joined:
    Apr 22, 2011
    Messages:
    2,868
    Likes Received:
    844
    Trophy Points:
    248
    Location:
    Oakdale, MN
    Resorts Owned:
    DRI: The Point at Poipu, 3 deeded weeks, 1 of which is in The Club.
    For the long term investor, market dips or drops mean that stocks are on sale and it's time to buy more. Occasional re-balancing will help you to do that. Figure out what your stocks vs bond/cash percentages should be, when it gets off balance, use one to buy more of the other. It's called couch potato investing and works best when psycho investors cause wild swings in the market.
     
    pedro47 likes this.
  5. pedro47

    pedro47 TUG Review Crew: Expert TUG Member

    Joined:
    Jun 6, 2005
    Messages:
    11,103
    Likes Received:
    2,055
    Trophy Points:
    548
    Location:
    East Coast
    You are so correct with your comments. This is why you should buy blue chips stock that pays dividends when the market dips or drops. IMHO.
     
  6. dougp26364

    dougp26364 TUG Review Crew: Veteran TUG Member

    Joined:
    Jun 6, 2005
    Messages:
    12,561
    Likes Received:
    531
    Trophy Points:
    448
    News media, like timeshare sales persons, thrive on scare tactics or dramatic statements. They want to put out those big scary headlines to grab your attention. Let's face it, a headline of, "Good news for egg lovers!" just won't get enough clicks to generate advertising dollars and pay the bills.

    Maybe paper newspapers, back when people had subscriptions and the news media had a steady income, was the best way to get our "news". At least they could run "reasonable" news stories without worry of keeping click counts up to generate advertising dollars. Maybe the future of news needs to be subscription services but, at this point, who'd be willing to pay for a subscription when it's to easy to find "free" news articles, because there will always be a news source willing to earn their paycheck on advertising click counts.
     
  7. pedro47

    pedro47 TUG Review Crew: Expert TUG Member

    Joined:
    Jun 6, 2005
    Messages:
    11,103
    Likes Received:
    2,055
    Trophy Points:
    548
    Location:
    East Coast
    I agree Doug26364, once upon a time a paper newspaper was the best source of detail true information; both sides of a story was given a chance to discuss their problems. They did not publish fake news like today; if they made a mistake in their print publication they ran a correction news article in bold print. Television news casters of years ago reported the news. They were not Democratic, Republicans, Liberals, or Conservatives. Their job was to report the daily new events. End of news show for that night. IMHO.

    .
     
  8. artringwald

    artringwald TUG Member

    Joined:
    Apr 22, 2011
    Messages:
    2,868
    Likes Received:
    844
    Trophy Points:
    248
    Location:
    Oakdale, MN
    Resorts Owned:
    DRI: The Point at Poipu, 3 deeded weeks, 1 of which is in The Club.
    I still like getting a newspaper every day. Nothing flashes to distract me when I read it. I don't have to scroll up and down. The articles are organized into sections. And I can do Sudoku with a pen (while our parakeet tries to play with the shiny pen). When we're on vacation I get the eEdition of our home town paper, but I also enjoy reading the print edition of the local paper of the resort area.

    I think most newspapers still try and report the news honestly, but they certainly adjust headlines and article priorities to match their reader base. Both Minneapolis and St. Paul publish newspapers, and there's a noticeable difference in what they report. I subscribe to the Minneapolis paper because the comics are better.
     
    Jan M., pedro47 and MULTIZ321 like this.
  9. A.Win

    A.Win TUG Member

    Joined:
    Oct 20, 2013
    Messages:
    267
    Likes Received:
    29
    Trophy Points:
    138
    Location:
    Northern VA
    I have a loss in my 529s because I opened them recently. I was hoping I could benefit from a tax loss, but I learned that you can't deduct losses unless they exceed 2% of AGI.

    Seems that my taxable accounts have big taxes to be paid, while my tax deferred/tax free accounts don't perform as well.
     
  10. pedro47

    pedro47 TUG Review Crew: Expert TUG Member

    Joined:
    Jun 6, 2005
    Messages:
    11,103
    Likes Received:
    2,055
    Trophy Points:
    548
    Location:
    East Coast
    Thanks you artringwald and doug26364 for your honest comments. I still liked to read
    our daily newspaper in print and on vacation I enjoy reading our eEdition.

    I still enjoy reading the old comic strips; but I play Sudoku with a pencil. The numbers /mind sometimes plays tricks. LOL.
     
    Last edited: Dec 29, 2018

Share This Page