Education/College Funding

What is a Parent Plus Loan?

A Parent Plus Loan is a loan offered through the Federal Student Aid office allowing parents to borrow on behalf of their child. The amount borrowed can be up to 100% of the cost of attendance of their child’s college/university, less any other financial aid received by the student. Interest rates have been near or slightly above 5%. Should parents have an unfavorable credit history or other extenuating circumstances which may prevent approval of the Parent Plus loan, a co-signer option is available to assist parents in the qualification of the loan.

What is a 529 Plan?

A 529 plan is an education savings strategy that has tax advantages within. This account can be set up as a savings plan or as a prepaid tuition plan. If you establish the savings plan, the funds grow tax deferred and if used for qualifying expenses, withdraws are tax free. Withdrawals can be used for both college and K-12 expenses within the savings plan. If you were to establish the prepaid tuition plan, you are securing the current pricing for a specific college or university. 529 plans are state specific; however, you are not restricted to investing in your residence state.

Financial Planning

Do I Need an Accountant?

Most people do not use a Certified Professional Accountant (CPA) unless their financial picture is complex. For example, if they own a business, own multiple properties, hold complex investments or encounter a transaction(s) throughout a specific year which may have a tax effect of which they are uncertain. Whatever your specific situation is, it is important to seek an expert’s advice.

How Much Money do I Need for Retirement?

There is no set formula to determine this amount. The answer is case specific and depends on the individual’s lifestyle and expenses. Many retirement experts estimate you need approximately 80% of your pre-retirement salary to live comfortably. As you move toward retirement, you will have a more precise financial picture and can budget accordingly to incorporate your expenses. When entering retirement, experts suggest a 4% annual withdrawal rate.

Estate & Health Planning

What is a Will, and Do I Need One?

A Will is a legal document that outlines an individual’s wishes upon their death, as well as how their property will be distributed. 

The short answer is yes. If you have property, a spouse and/or a dependent, a Will is necessary. 

If there is no Will in place at the time of a person’s death, the laws of intestacy in the deceased’s state of residency will determine the distribution of their property.

Do I Need Life Insurance?

Life insurance is intended to fund outstanding liabilities, end of life expenses, and replace income to someone who may experience a financial hardship with the loss of an individual. There are various types of life insurance, all serving specific purposes. It is best to speak with a professional to see which type of life insurance best fits your needs.

What is a Financial Power of Attorney?

A Financial Power of Attorney is a legal document that gives an individual the authority to act on behalf of someone else in regard to their financial situation. The document could be broad or as specific as you wish. A financial power of attorney letter is automatically terminated upon the death of the principal. Once the principal passes away, their executor(ix) will then deal with all financial matters. Whatever your specific situation is, it is important to seek an expert’s advice.

What is a Health Care Proxy?  

It is recommended that an individual have a Health Care Proxy in the event the individual is unable to independently make decisions in these areas of their life. A Health Care Proxy is a legal document that gives a specified individual (agent) the authority to make health-care decisions if the individual is incapable of making their decisions on their own. The agent must be 18 years old to make a health care proxy.