Modesto's First Federal Credit Union on LinkedIn: #modestocalifornia #modesto #californialife #ilovemodesto (2024)

Today is the first day of school for many local universities here in SC!Here are 6 things to consider as your children begin life after high school:1. Keep on savingRegardless of how much money you've been able to set aside for college, you can continue contributing to education savings accounts, within limits, after your children are enrolled in classes.2. Keep up with taxesIf your family has a 529 education savings plan, withdrawals can be made tax- and penalty-free as long as they're for qualified expenses at an eligible institution. Qualified expenses include tuition, room and board, books and supplies. If you're paying college costs using your investment portfolio, however, all earnings are taxed at the usual rate, except you're not limited by how much you can contribute each year. Talk with your financial advisor & tax professional about what will work best for your family.3. Explore financial aidIt never hurts to investigate what kind of aid is available from federal, state, local and private funding sources. A good place to start is the U.S. government's Federal Student Aid which provides information and links about student financial assistance. Complete all necessary financial aid forms, including the Free Application for Federal Student Aid (FAFSA). You also can estimate how much financial aid your child might qualify to receive.4. Consider how to pay the schoolDepending on the institution, payments can be handled in different ways, so the earlier you become familiar with the policy at your child's chosen college, the better. Are payment plans offered at the college or university, or will you be required to pay expenses by the semester? The bursar's office should be able to shed light on these and other financial considerations prior to your child's enrollment.5. Work on developing a budgetNow that your son or daughter is almost ready for the college experience, it may be time to discuss putting a budget in place. First, you should go over spending expectations and how much you will be providing for his or her expenses. Are you paying for everything, or just tuition? Is your child planning to live in campus housing, or will he or she choose an off-campus location – or continue living at home? Depending on how much money is available and what you agree to do, the student might need a part-time job to help with bills.6. Don't forget your retirement goalsNow that your child is heading off to school, you're likely to spend less on items such as groceries and utilities. You might even want to downsize your home. If any of that is the case, it might be possible for you to begin depositing more money into your employer-sponsored or Individual Retirement Accounts. Depending on your age and the plans you have, you can make larger catch-up contributions to help fill any gaps that might have occurred while you were saving for your child's education.#college #clemson #classof2027 #southcarolina

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PARENTS AND STUDENTS: THIS IS HOW TO SAVE FOR COLLEGE 💴 👩🎓💰 With the rising cost of tuition and living expenses, it's important to have a plan in place to ensure that your educational goals are met without incurring significant debt. ⬇️ 🧑🎓 START EARLYOne popular option for college savings is a 529 plan. It's designed specifically for educational expenses and contributions grow tax-free (and withdrawals are also tax-free when used for qualified educational expenses). Break down your savings goal into monthly or yearly contributions.👩🎓 SET SAVINGS GOALSDetermine how much money you will need to save for college; estimate the total cost of attending college, including tuition, room and board, books and supplies, transportation, and other related expenses. Once you have a rough estimate of the total cost, you can break it down into smaller, more manageable goals. Make your goals specific, measurable, and time-bound. Set a clear target for how much you want to save, how you will measure your progress, and when you hope to achieve your goal. Consider using automatic savings tools, like direct deposit or automatic transfers, to help you stay consistent in your savings efforts.👨🎓 CUT COSTS WHERE YOU CAN💰 Live off-campus: Consider transportation costs, like gas or public transit, when weighing this option.💰 Use library textbooks: Instead of buying expensive textbooks, borrow them from the library or rent them online. Some professors also provide free online versions of the required readings.💰 Apply for fees waivers: Some colleges offer waivers for certain fees, like application fees or fees for using the fitness center. Check with your college's financial aid office to see if you are eligible for any of these waivers.💰 Take advantage of student discounts: Many retailers, restaurants, and entertainment venues offer discounts to students. Be sure to carry your student ID with you and ask if a discount is available.💰 Look for work-study opportunities: Many colleges offer part-time work-study opportunities on campus.💰 Consider community college: Be sure to check with the community college to see which credits will transfer to your desired four-year college.👩🎓 EXPLORE FINANCIAL AID💰 Complete the FAFSA: This form determines your eligibility for federal financial aid programs, including grants, loans, and work-study programs.💰 Check with your college's financial aid office: Many colleges offer their own financial aid programs, including scholarships, grants, and work-study programs. 💰 Look for private loans: Research interest rates, fees, and repayment terms carefully before taking out a private loan.💰 Consider a payment plan: Some colleges offer payment plans that allow you to pay your tuition and fees in installments over the course of the semester or year. Now you just need to graduate! 👩🎓

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Education costs are currently rising at twice the rate of inflation, so it’s more important than ever to plan ahead for the investment you’re making in your child.Grandparents paying some of the school costs is becoming increasingly common with 29% of grandparents wanting to draw down on their super to pay school fees. The actual cost of your child’s (or grandchild’s) education will depend largely on whether they are enrolled in a public, systemic (e.g. Catholic) or an independent private school.The ASG survey found that the cost of private education in metro areas P–12 ranged between $360k and $550k (WOW!). Private schools in regional areas are slightly more affordable (time for a tree change?).Melbourne public schools sit 12% above the national metro average, only setting you back around $75k. Regional areas, again, cost less on average at $50k. These estimates include the ‘voluntary contributions’ in lieu of fees that most public schools ask for.Of course, fees aren’t the only cost you need to budget for. There are the traditional outgoings of uniforms, books and extracurricular activities, plus a laptop or tablet. Families spend an average of $2k on these ‘extras’ per child every year. These costs typically increase as the student aged.Let’s not forget the cost of uni/TAFE. An undergraduate degree currently costs between $6k and $10k each year, depending on the course.Students can defer payment via a HECS-HELP loan, but more and more families are looking to pay some or all fees upfront to avoid a large student debt.Where students live away from home, parents may also need to factor in the cost of student accommodation and other living expenses.Explore your savings optionsLike any major investment, the sooner you start saving the more options you will have. You could open a dedicated savings account, but the interest rate is unlikely to keep pace with inflation. Here are some popular strategies for long-term education savings:💲Education Funds. These are specifically designed to lock money away for your child’s education. They offer some attractive tax concessions, but there are restrictions and fees to consider.💲Term deposits. Are simple and virtually risk free, but interest rates may not keep pace with inflation.💲Managed Funds. You don’t need much money to get started, you can make regular contributions and you get the benefits of diversification and professional management.💲Insurance Bonds. These offer a diversified investment menu but with additional tax advantages. Earnings are taxed inside the bond at the company rate. If you withdraw your money after 10 years, all investment earnings are tax free.Investing in a child’s education is a long-term commitment, but the satisfaction that comes from knowing you have given them the best possible start in life is priceless. Let me know if you would like to discuss an education savings strategy for your child or grandchild.https://lnkd.in/gWQKSr3A

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One of the best ways to fund post-secondary education is with a Registered Education Savings Plan (RESP). However, according to Government of Canada statistics, in 2021 only 56.7% of eligible children less than 18 in Canada received the federal education incentives in their RESP account. One of the reasons for this may be due to the fact that many parents and/or students aren't aware of the best ways to maximize their contributions to an RESP. Working with a financial planner is one way that you can extract more value from your RESP. Here are a few other tips that help you extract the largest possible value from your RESPs. If your child is pursuing post-secondary education: 1. Know where to get proof of enrollment. The proof of enrollment is required to withdraw any funds for your child. To be considered valid, the document must have educational institution's letterhead containing:- the institution's name and address (including postal code)- date of issue (currently dated)- student number- confirmation of enrollment - enrollment status2. Access capital tax efficiently. The main benefit of the RESP is that a portion of funds are withdrawn in the student's name. Post-Secondary Education Payments (PSE) are the contributions made to the plan, they can be withdrawn tax-free at any time with no limit. Educational Assistance Payments (EAP) comprises everything else including investment income, capital gains, and government grants/bonds. These funds are taxed in the student's hands. During the first 13 weeks of the school year, only $8,000 or $4,000 can be withdrawn from EAP for full and part-time students, respectively. After that there is no limit up to the annual EAP maximum of $26,860. 3. Timing of withdrawalsWithdrawals should be done in anticipation of low cashflow years but still done before student leaves school or there may be additional taxation. If your child is not pursuing post-secondary education:4. Transfer AIP to your RRSPThe government will require all grant/bond funding to be repaid when RESP is collapsed. Contributions can be withdrawn tax-free and any investment come, referred to as Accumulated Income Payment (AIP) can be rolled into an RRSP provided there is contribution room, up to a maximum of $50,000. 5. Internal RESP transferUnused funds can be transferred to a sibling's RRSP (if under 21). However, any grants above the personal maximum of $7,200 must be repaid. 6. Use the 6 month grace periodThere is a 6 month grace period after beneficiary is no longer enrolled where beneficiaries can withdraw excess RESP savings as EAP, taxable in their own hands. There are limitations and so consult a tax specialist before proceeding as there may be penalties if there is a very large withdrawal. Do you or someone you know have questions about education planning? Get in touch with me or my team, we are here to help!andrew.leung@scotiawealth.com613.668.7497https://lnkd.in/gWgkdMSK

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The #Massachusetts Senate has proposedfree community collegefor all residents, but educators say an influx of new students could overwhelm the system.The MassEducate plan invests $75 million in new spending to cover tuition and fees and creates a fund for emergency costs, like child care, which can derail a student's graduation.Sen. Jo Comerford, D-Northampton, called the program a win for social equity and a boon for the state's economy."We know that earnings increase, we know health increases, we know opportunity increases with every degree that someone gets," Comerford outlined. "Beginning with community college."The state's new "millionaire's tax" would fund the program, but educators in the state's 15 community colleges said they are already struggling to retain faculty, whose salaries are more than 50% behind those in California, the state with the cost of living most similar to Massachusetts.Comerford pointed out the state is working to rebuild the community college system, which has been underfunded for decades. Educators said without more money to hire and adequately pay more staff, including admissions and mental health counselors, students are being set up to fail.Claudine Barnes, president of the Massachusetts Community College Council, said her full-time members are already overworked and most have additional part-time jobs to make ends meet."I get the sense that they want to basically see how we weather the storm of an influx of additional students and then they might decide to give us more money," Barnes observed.Still, Barnes argued debt-free community college would be a game-changer for lower-income and first generation students, and schools are already drawing up contingency plans should the program survive budget negotiations.Comerford added a proposed rapid task force would work to improve staff retention and working conditions and would include educators and others from the Department of Education.

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How 529 Plans Can Unknowingly Impact College Funding and Thousands are ForfeitedMany parents utilize 529 plans to save for their children's college education, unaware that these savings can negatively impact their child's eligibility for financial aid. This unintended consequence often leads to reduced financial aid packages and forfeited scholarships, leaving families blindsided by unexpected costs.Professional Judgment AdjustmentsFinancial aid officers have the authority to use professional judgment to adjust a student’s aid package. These adjustments can lead to substantial reductions or even disqualification from scholarships and grants. Unfortunately, these changes often occur without the family's knowledge, leaving them to discover the financial shortfall too late. Here’s how 529 plans can reduce or cause forfeiture of scholarships without the parents knowing:FAFSA ImpactWhen 529 plan savings are disclosed on the FAFSA, they are counted as parental assets. This can significantly reduce the student's eligibility for need-based aid, sometimes costing families tens of thousands of dollars in lost funding.Uninformed AdjustmentsSchools often do not notify families when their financial aid is adjusted or forfeited due to 529 plan disclosures. This lack of transparency can result in parents overpaying for college without realizing it until it's too late to make adjustments.High School Counselors’ LimitationsMost high school counselors are not trained in the intricacies of college funding and financial aid impacts. As a result, they may not be able to provide the necessary guidance to help families navigate these challenges effectively.The Solution: Certified College Funding SpecialistsEntering the summer, many parents are overpaying for college, and they don't even know it. In the coming school year, thousands of parents will make the same mistake. Having a certified college funding specialist like Jeffrey Taylor can make a significant difference in avoiding being blindsided by providing a funding audit. ConclusionWhile 529 plans are a valuable tool for saving for college, they can inadvertently reduce the amount of financial aid a student receives. Conducting an aid audit and seeking the advice of a certified college funding specialist like Jeffrey Taylor can help families avoid unexpected financial burdens and maximize their investment in their child's education. Don’t be among the thousands of parents making costly mistakes—take proactive steps to safeguard your financial future.Why wait until the pain of regret is being felt, request a 15 minute free report at https://lnkd.in/e4sR3Rx#CollegeFunding #529Plans #FinancialAid #FAFSA #Scholarships #CollegePlanning #CertifiedCollegeFundingSpecialist #EducationSavings #FinancialPlanning #HigherEducation

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Do you know a student or a prospective student that needs help with their 2024-25 FAFSA? Navigating the path to education & training after high school involves many crucial steps and completing the Free Application for Federal Student Aid (FAFSA) stands out as one of the most important. The FAFSA is your gateway to accessing federal grants, loans, and work-study funds. These financial resources can significantly reduce the burden of college expenses, making higher education more attainable.We at VSAC, and many colleges use FAFSA data (and the VSAC grant application) to award grants. By not filling out the FAFSA, you might miss out on additional funding that can make a big difference.Completing the FAFSA helps you and your family understand the true cost of college. It provides a clearer picture of the net price after accounting for financial aid, helping you make informed decisions. For those still debating whether to attend education & training after high school, the FAFSA offers insights into the financial aid you might receive. This can help you weigh the costs and benefits more accurately, potentially opening doors you hadn’t considered.Don’t let misconceptions about FAFSA or college affordability hold you back. Fill out the FAFSA and uncover the real cost of your education. It’s a crucial step towards investing in your future.VSAC is partnering with Community College of Vermont (CCV) and Vermont State University (VTSU) to offer free FAFSA filing events this summer. Virtual FAFSA Fridays will be offeredJuly 12-August 30, 12-2pm and 4-6pm via Zoom. In-person events are being offered at various locations around the state:Monday, July 22nd, 11:00am-2:00pm at VTSU LyndonWednesday, July 24th, 10:00am-2:00pm at CCV MontpelierTuesday, July 30th, 11:00am-2:00pm at CCV MorrisvilleTuesday, July 30th, 10:00am-12:00pm at VT Adult Learning SpringfieldWednesday, July 31st, 10:00am-1:00pm at CCV NewportThursday, August 1st, 11:00am-1:00pm at CCV St. JohnsburyThursday, August 1st, 12:30pm-2:30pm at CCV BrattleboroFriday, August 2nd, 10:00am-12:00pm at CCV BrattleboroTuesday, August 6th, 11:00am-2:00pm at VTSU Johnson Visit vsac.org/FAFSA for additional information on what to bring to the appointment and to pre-register for certain events.

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Voters Back Most School Budget Plans - Major Capital Improvement Bond LosesSchool budgets in Westchester, Rockland, and Putnam counties were decided last Tuesday showing a greater percentage of approvals to rejections. In Westchester County, notable approvals include school budgets in the Village of Bronxville, Byram Hills School District in the Town of North Castle and the school district in the Town of Mamaroneck. However, voters in Chappaqua and Scarsdale rejected budget proposals there. While its school budget passed by a more than 2-1 margin, Edgemont voters narrowly rejected a $66.8 million capital improvement bond by only 26 votes, (671-645). Rockland County saw approvals in Clarkstown, Nanuet and Pearl River. The plan in East Ramapo faced a budget rejection.It was noted that Chappaqua and East Ramapo can put forth a second proposal, with or without changes, on June 18. Districts that lose two budget votes must adopt state-imposed contingency budgets, which freeze the tax level at the current amount.Since 2012 when the state’s 2% property tax levy cap went into effect, school districts are now facing a trifecta of budgetary challenges: inflation coupled with limited increases in state foundation aid as well as the dwindling levels of pandemic relief money are placing new pressures on school district spending plans. Some 13 districts in the lower Hudson Valley proposed tax increases below the 2% cap. Another 32 districts proposed increases between 2% and 4%, while seven districts proposed increases at 4% or more—Rye, Harrison and Scarsdale approved such plans, Chappaqua’s budget plan lost by nearly 2-1. In other highlights, New Rochelle voters approved two propositions: one to spend $10 million from the capital reserve fund to renovate the high school pool and for other upgrades in the district’s other schools. Voters also approved the plan to create a $50-million fund for facilities improvements and renovations.In Elmsford a proposition to establish and expand capital reserve funding passed as did a proposition to deposit into a repair reserve. In South Orangetown in Rockland, with the school budget passing by a 3-1 margin, a proposition to establish a capital reserve fund and a spending plan to replace boilers at Tappan Zee High School also passed.According to an analysis by The Journal News, “The average proposed spending increase in 53 districts across Putnam, Westchester and Rockland was a little more than 4%.”Westchester County County of Rockland

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"The Department’s FAFSA College Support Strategy includes:Deploying federal personnel and expertise to help colleges prepare and process financial aid forms. Directing funding for technical assistance and support for under resourced colleges. Releasing tools to help colleges prepare to quickly and accurately process student records and deliver financial aid packages.The Department will bedeploying federal financial aid experts to a group of lowered-resourced collegesto ensure these colleges have the tools and information needed to process financial aid packages, understand the steps they need to take to prepare, deliver direct on-campus support, and provide ongoing consultations and trainings as needed. Through this effort, the Department expects to serve Historically Black Colleges and Universities, tribal colleges and universities, and colleges that are lower-resourced.The Department is alsostanding up a new concierge service within the office of Federal Student Aid, which will provide a broad set of colleges direct contact with financial aid experts to help to provide them personalized support based on an institution’s needs. These federal liaisons, many of whom are former financial aid professionals, will answer questions and connect colleges to available resources.Providing funding for technical assistance and on-the-ground supportThe Department isallocating $50 million in federal fundingthat will be provided to non-profit groups specialized in financial aid support and services. These groups will use these funds to recruit financial aid professionals to provide additional technical assistance and support, beyond the federal teams deployed by the Department, for under resourced colleges. Participating colleges will receive additional staff support to deliver services such as assessing financial aid system readiness and implementing necessary updates, training staff, developing aid packages, and carrying out other student aid compliance requirements. The federal funding will be administered by the Educational Credit Management Corporation and will engage experienced nonprofits like the National Association of Student Financial Aid Administrators and the Partnership for Education Advancement.Releasing data and tools to help colleges prepare to quickly and accurately process student records, deliver financial aid packagesThe Department will beginreleasing test versions of institutional student financial aid information records (ISIRs)within the next two weeks and will be actively working with financial aid system developers so that colleges and states can prepare their systems. These test ISIRs will enable colleges to prepare their own systems and processes to efficiently assemble aid packages.

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I seem to be having quite a few conversations at the moment with clients around private school fee planning and, if grandparents want to help how they can potentially fund as tax efficiently as possible. 🤔In quite a few cases, grandparents "simply" paying the school fees direct (to parents or the school) may not be the most optimal situation, and can also have a few unintended tax implications as well. 😬The ability for grandparents to gift into a family Trust is something, in the right circ*mstances, we would generally bring to the table as one of the optimal solutions. Trusts can provide a secure and efficient way to plan for school fees, offering tax benefits, asset protection, flexibility, and long-term continuity. A short summary:1. Tax Advantages; by transferring assets into a trust it is possible to significantly reduce inheritance tax, income tax and capital gains tax. We are talking about £100,000's in tax potentially. This can naturally ensure more funds are available to pay for the fees! ✔2. Flexibility; trusts offer flexibility in terms of distribution of funds. They can be structured to allow for periodic distributions or to provide for specific educational expenses, such as school fees, school trips and university costs. Trustees have the discretion to decide when and how funds are distributed. ✔3. Asset protection; assets held in a trust are protected from creditors and can be ring-fenced from divorce settlements. This can ensure funds earmarked for school fees are safeguarded and not subject to potential financial complications. ✔4. Continuity; trusts can ensure even in the event of changes in personal circ*mstances, school fees can be paid. For example, if the parent or grandparent paying the fees passes away or becomes incapacitated the trust can continue to provide for the child's education. ✔5. Educational legacy; parents or grandparents can create a lasting legacy of education for future family generations. Trusts can be structured in a way that allows for continued funding of education expenses for descendants, ensuring that the family's commitment to education is preserved. ✔6. Long-term planning; it can allow family members to "set-aside" for school fees well in advance. This can help alleviate financial pressure when the time comes to pay for educational expenses. ✔As always, worth having a chat to a friendly financial planner and/or tax professional (usually both!) to determine the most suitable Trust structure and options for individual circ*mstances. 😀#trustplanning #taxplanning #inheritancetaxplanning #financialplanning #oldmill #privateschoolfees #thinkingoutsidethebox #financialplanner #taxsavings #legacy

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