Where to Stash Your College Savings Cash!

You are ready to begin investing for your children’s education – kudos to you! It’s understandable that deciding where to save may be a tough decision to make. We’re here to help! Below are four college savings options for you to evaluate, consider which one or the combination that is best for your family.

529 College Savings Plans

529 College Savings plans are a very attractive solution to saving for college. They were created in 1996 in section 529 of the IRS code – hence the name. They are essentially mutual funds for college savings. Therefore, they contain a mix of investments in stocks, bonds, real estate, and money market funds. Over the life of the account, contribution limits range from $100,000 - $300,000 based on the rules of your state and your money grows tax free. You don’t have to buy a 529 only in the state you live in; research which state offers the best plan for your goals and you can invest there. Another bonus is the low investment minimums – you can open an account with as little as $25 in most cases.  There’s no age limit on beneficiaries or time limit on distributions..... (More)

-Dorethia 

Looking to jump start YOUR 2012 money management or business game plan? 

Visit connercoaching.com!

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Biz: A Medical Savings Account for the Self Employed?

by Benita Tyler, Business Accountant & Tax Planner www.tbsusa.com

Q. I run my own company and plan to hire two employees this year. I'm researching medical savings account and wondered if there is any tax advantages for me as a self-employed business owner?

A. From the standpoint of tax planning, two Medical Savings Account (MSA) that you should consider are the Archer MSA and the Medicare Advantage MSA. Both plans operate like an IRA to lower your taxable income and income tax with tax free savings contributions. However, unlike IRA's where there may be a penalty for early withdrawal, an MSA provides you with access to tax-free withdrawals without penalty as long as they are used to pay for health care costs. 

Some points to note for each account are: 

• The Archer MSA is restricted to self-employed and/or the employees of small businesses 
• The Medicare Advantage requires you to be enrolled in Medicare in order to qualify. 

In addition to the tax advantages there is also the benefit of paying lower health care premiums. The offset to lower premiums, however, is higher deductibles which is something to factor in as you decide which health coverage is right for you. 

Note: Ms. Tyler is not compensated for suggesting these plans and is not responsible whether or not it works for you. She's simply giving alternatives for you to research and make a decision that suits your needs... Okay? Good! Thanks for reading!

Benita Tyler, the Financial Messenger and President of TBS USA,  started as a business support company in 1999.  In 2000, Benita began advising business owners on income taxes and helping them customize financial systems to increase profits and savings.  In 2003, Benita pioneered the “Wealthy Place Appraisal” a proprietary 7-step process that she uses to help business owners determine which decisions are moving them closer to wealth goals and which are causing them to lose ground. 

Get your appraisal and more at tbsusa.com! 

Choosing a College: In-State vs. Private Universities....

So you are thinking about what type of college your child might attend and calculating the costs. Should they go to public, should they go to private and how will you pay for either one? It’s important to be prepared and intentional, as planning for college also affects how quickly you reach other personal finance goals. We all know that private schools can cost up to 3x’s more than a public university.   Therefore not only consider  your budget, but also make sure the school is a good fit for your child’s personality and study habits.  Here are a few tips   to help you along the way.

Know the difference! 

• Public colleges – (average tuition, room/board range: 13,000 - $30,000 per year) funded by the State, therefore tuition isn't the only source of funding allowing for lower tuition rates, more scholarships available.  In-state college is going to be cheaper as they give preference to residents. 

• Private colleges – (average tuition, room/board range: 35,000 – 50,000 per year) funded by tuition and ... (More)

Join us for #MoneyChat every Monday night 8-9p ET on Twitter!

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#MoneyChat Biz Series: Startup Reality!

Hey #MoneyChat FAM! I hope you all are doing well... I'm confined to my couch with Theraflu and a box of tissues... the Detroit winter has been so mild, some of us (ME) forgot it was indeed... WINTER!  I wanted to make sure I posted this recap of Monday's chat that kicked off our Biz Series. Check it out, share it with your friends and JOIN US for #MoneyChat every Monday night 8-9p. ET! 

_______________________________________

As a business coach, I work with a lot of people who are looking to leave their jobs eventually and start their own business. Part of helping them do that is also making sure they have a realistic view of what it will truly take.....

Dreaming.... 

... of sleeping in, long vacations, and loads of dough? WAKE UP! Entrepreneurship is hard work. You may get tired of hearing people say make sure you choose a business you will love, that you are passionate about, but it's the best advice ever. When the days get long, when you have to pay everyone but yourself, when you have not had a vacation in several years - you will NEED that love and passion. 

Paperwork...

One poster said she had friends who had started businesses and were using names that weren't registered. That's a waste of energy and demonstrates a lack of seriousness about your business. Why go through the trouble of building a brand, getting postcards, business cards, etc. and your name isn't registered? Someone else could legitimately use the same name because they took the time to get their paperwork in order. Take care of your paperwork, your taxes, keep your books in order from the start.

A 40 Page Business Plan? Uh.. NO!

I've had a couple of side businesses.. sold jewelry, candles, cleaned houses. It wasn't until I started Conner Coaching that I felt I needed a massive business plan. So I spent six long, grueling months creating a beautiful plan, complete with charts! ( I heart charts) Only to have to revamp it to a smaller, workable version soon after! 

Don't get me wrong - you definitely need a business plan, but think of it as a 2-5 pager that includes:

1. Vision - (don't get too deep here, what do you see for your company in one paragraph)
2. Operations/Team
3. Marketing Plan/Target Market
4. Financial Plan (startup costs, 3 year forecast, expected cash flow)

When do you need a major business plan? When you are seeking multi-million dollar bank deals, VC (Venture Capital) funding (maybe) or participating in a business plan or other entrepreneurship competition.

Marketing...

Many entrepreneurs believe that their marketing begins and ends with social media. While social media is a great tool, it's not supposed to be your only one. You have to allocate some money toward marketing. Initially this may include your expenses for business cards, website, flyers, etc. You will want to allocate money for advertisements that make sense for your business. (Ex: If you have a trucking business, don't place an during a political talk show)

Research your market before you spend a lot of money on useless ads, be focused and intentional so you can bring in customers, sell more products. Pick your top 5 advertising methods. For example - 2 of my top 5 are Social Media and Speaking. I've built a community online and speaking almost always generates clients. 

One of my favorite marketing authors is Jay Conrad Levinson  and his Startup Guide To Guerilla Marketing, I recommend this book to my clients. 

A last tidbit...

One of the main keys in starting a business is being disciplined in your personal finances. You will likely have to invest personal money to get started, if you don't know what you have, you will be in trouble. Also, your personal finance habits, translate into how you manage your business finances.

Join us next Monday's topic - Business Conferences! How to make the most of them and actually walk away with client prospects, media attention and new friends!

How did you start your first business? Are you getting started now and have more questions? Post them below!

-Dorethia

College Savings: You Don't Have to Be Rich, You Just Need a Plan!

Here's another post from my column over at Adaptu.com (@Adaptu on Twitter).. I write about all things college savings related.. check it out and be sure to comment!

One question I get all the time is ‘when is a good time to start saving for my child’s education?’ My answer – as soon as you can! Whether your children are toddlers or teenagers it’s never too late or too early to start saving for college. Of course the amount you can save is based on your budget and household expenses, but it is important to set a goal, even if you will have to begin later. Don't allow the costs of college to overwhelm you, do what you can. Create a strategy for where you are now, and stick to it.

 Two key things you need to consider are:

1. How long you have before your child/children graduate high school &.....
2. How much you can afford to set aside each month

Let’s just say the average cost of college whether private or public is $25,000 per year. Remember this amount fluctuates depending on the school.  It also doesn't take into consideration inflation or annual tuition increases - but it’s a good starting point, so let’s crunch the numbers.... (More)

Looking to jump start your 2012 financial or business goals? Visit ConnerCoaching.com

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What Affects Your Kid's Financial Aid Money?

A lot of NEW things going on at #MoneyChat! For starters, this blog will soon be completely 

revamped, #MoneyLIVE is going on tour  AND  I am the College Savings Coach for 

Adaptu.com.  Adaptu is a one stop shop for all your money management needs - they also have a pretty cool app (Adaptu Wallet) too!  Check out my articles, comment, start a discussion and oh yeah - repost! Thanks!

It can be quite a task to navigate the financial aid process. It’s difficult to keep up with what is and what isn’t counted toward the expected family contribution (EFC) amount when deciding how to pay for college. It may stun some of you to know that the parent’s assets are not weighed as much as the student’s in calculating financial aid awards. That’s right, the formula used assesses a family's need and EFC is based on 5.64% of parents’ assets and 20% of assets in a child's name or custodial account.

For instance Coverdell ESA’s and 529 Plans are not considered the child’s asset, but a parent’s, and thus included in the 5.64% parent calculation mentioned above. Custodial accounts... (More)

Author Kembala Evans on Her NEW Book: 'Get Your Money Right!"

I'm so excited to bring to you my fellow #FINCON pal and financial coach, Kembala Evans, the author of 'Get Your Money Right: The 7 Keys to Unlocking a Better Financial Future!'  Kembala's passion was evident as we shared our experiences as finance professionals and I knew she'd be a great guest for the #MoneyChat family. Enjoy our interview below and be sure to purchase the book at www.kembalaevans.com or on Amazon.com

Why did you write Get Your Money Right: The 7 Keys to Unlocking a Better Financial Future?

I wrote Get Your Money Right to help everyday people turn their finances around. As a financial coach and former banker, I’ve witnessed the challenges many people face managing their money. Especially when you’re trying to make it on less and everyday cost keep rising. There is a need to teach people about personal finance in a simpler, less intimidating and more meaningful way. I wrote my book to do just that. 

You mentioned your financial coaching and banking experience. Will you tell us more about your experience?

Yes, I have over 14 years experience as a financial coach—helping people achieve goals they never thought possible. I spent a few years working as a personal banking specialist. I also have nearly 12 years of business consulting experience at a leading consulting company, where I worked with Fortune 500 clients to improve their business performance. As a consulting senior manager, I held a number of executive positions and managed multi-million dollar projects/programs. But I left consulting to pursue my passion for helping everyday people improve their finances.

What makes Get Your Money Right different than other personal finance books?

Get Your Money Right simplifies the most important financial principles that can make the biggest difference in your life. It’s written in everyday language and breaks down each principle in an easy to understand and inspiring manner.

And it’s written from the heart. As a financial coach, I know behavior plays a large role in how we handle our money. So with that in mind, I used many of my financial coaching techniques to inspire readers to change. My book takes you back to the basics and focuses on the financial areas people struggle with the most. It has a positive message and includes real life success stories, words of wisdom and practical tips you can put into action now for a better tomorrow.

Who should read Get Your Money Right?

I recommend Get Your Money Right for people who are tired of living paycheck to paycheck, who need a money makeover or who want to learn the secrets of how the rich, stay rich.

What do you believe is the biggest issue people encounter after they decide to improve their finances?

They don’t know what to do or where to start. That’s where building the knowledge and finding a support system (e.g. financial coaching/counseling, mentor) can really help. If this is you Get Your Money Right shows you how to take control, eliminate debt, save money and more. Best of all, it’s an easy read, uplifting and packed with practical tips and information.

What can people learn from Get Your Money Right and put into action now?

There are many things people can learn and put into action now. In fact, every key gives readers an interactive experience. For example, in Key #2 Establish Your Vision and Goals readers discover how to create a vision and set goals. This key provides inspiring success stories, real life examples, and a step-by-step process to create your vision and goals. It also gives you useful tips to make your goals a reality.

Kembala Evans is the founder and president of KP Evans Financial, a personal finance education and coaching firm focused on educating, motivating, and empowering people to take control of their financial futures. Kembala speaks to audiences from all walks of life about personal finance. 

Buy 'Get Your Money Right' at www.kembalaevans.com or on Amazon.com!