Nobody likes to admit they’ve fallen for a financial scam, but the fact is, it’s easier than ever to get caught up in one. This is especially true in today’s all-digital world, where practically every shred of data related to your personal and financial background can be found online.

While no one is forcing you to use the Internet to manage your financial accounts, purchase goods and services, or communicate with the outside world, these days it’s nearly impossible to live your life without the web. This net-based existence can feel somewhat unnerving for those of us who came of age while the tech revolution was already underway, but for the elderly, who lived the vast majority of their lives offline, it can be absolutely overwhelming.

Given their lack of tech experience, coupled with the fact that many of them are undergoing varying levels of cognitive decline and sometimes live lonely, isolated lives, scammers view seniors as easy targets. And many of today’s con artists are so sophisticated, even the most intelligent and educated can be duped.

To protect your aging loved ones (and yourself) from such predators, it’s critical to know the warning signs of financial exploitation. The following are four big red flags to watch for:

FinanceStephen PennerJune 1, 2023Financial Scammers, Stock Market, Savings, Investments, Index Funds

Three Critical Considerations For How to Save For Your Child's (or Grandchild's) College Education - Part 2

If you have started to save for your child or grandchild’s college education, it’s worth considering whether to use a 529 plan, an education savings account, or an irrevocable education trust.

Yesterday, in part one of this series, we discussed 529 plans and education savings accounts, which are both popular options for saving for college education. One of the main reasons for their popularity is their tax-saving advantages. The money you contribute to a 529 account grows on a tax-deferred basis, and withdrawals are tax-free, provided they are used for qualified education expenses, such as tuition, room and board, and other education-related fees.

That said, one of the downsides of 529 plans is that they come with strict limits on how you can use the funds (for education-related expenses only), and they also have a limited range of options for how you can invest your funds, primarily in various mutual funds. For these reasons, 529 plans and ESAs aren’t always the best fit for some families looking to save for their loved ones’ education.

Estate PlanningStephen PennerApril 5, 2023Savings, Trusts, Education Trusts, Irrevocable Trusts, Taxes

Three Critical Considerations For How to Save For Your Child's (or Grandchild's) College Education - Part 1

Since 1996, 529 plans, which are named for Section 529 of the Internal Revenue Code, have been one of the most popular options for covering college costs. Congress expanded these plans to cover K–12 education in 2017, and it also changed the program to pay up to $10,000 in student loan debt in 2019.

One reason 529 plans are so popular is due to their tax-saving advantages. The money you contribute to a 529 account grows on a tax-deferred basis, and withdrawals are tax-free, provided they are used for qualified education expenses, such as tuition, room and board, and other education-related fees. And many states also provide a tax deduction or credit for 529 contributions.

Another appealing feature of 529 plans is their relatively high contribution limits. There is no limit on how much you can contribute each year, although if you contribute more than $17,000 (the amount of the gift tax exemption limit in 2023), you can trigger federal gift taxes and the requirement to file a gift tax return. If you plan to make a contribution close to or above $17,000, contact us for guidance.

Key Milestones for Planning Your Retirement

Retirement is not just the time in life when you will be doing nothing. It is not even a period that you can choose to skip because you plan to keep working. Many individuals work full-time during their retirement years, but they still take advantage of tax and financial opportunities because of their age. Indeed, the wise and prudent adult views retirement as the last 3-4 decades of their life. It is a period where the statistical probability of injury, health problems, and illness is high, even for healthy and physically active adults. It is a period where the statistical probability of your wanting to access savings in order to provide for and help those whom you love most is practically certain.

Even if you continue working, it is also a period where those who you love will likely have days, weeks, or months where they will need you to take time off work to be there for them. Planning for retirement, even while you are in your college years, is the practice of a good and responsible family member and friend. But the road to retirement is a long one, and as with any journey, it helps to have a few key milestones along the way to help gauge your progress. While your individual retirement plan and goals will be unique to your income, family situation, and desired lifestyle, most Americans share a number of common retirement milestones.

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