SUMMER PEACH BALSAMIC CAPRESE SALAD
STRIPED JUICE POPSICLES
TOMATO, PEACH, & BURRATA SALAD
STRAWBERRY GOAT CHEESE CROSTINI
BAKED RATATOUILLE TIAN
SUMMER FRUIT BREAKFAST BAKE
BLUEBERRY BREAD PUDDING
Read Spring + Summer Recipes to Fill Your Instagram Feed on Apartminty.
Hi friends. So sorry to go completely MIA on you. Between attempting online school with a five-year-old, much of California burning to the ground, and the general state total chaos in which we find ourselves, getting to the computer for any length of time has been a bit of challenge, to put it mildly. And then I blinked and summer is officially over.
But I had to finally get on here as I have big news for you!
They say you shouldn’t make major life decisions during times of extreme stress, right? Well, we decided to throw all caution to the wind and instead have purchased a coastal cottage in Washington State! Apparently a global pandemic, homeschooling a kindergartner and the most consequential presidential election of our lifetime wasn’t enough to keep me busy.
In all seriousness, if the past seven months of Covid have taught us anything, it’s the importance of friends and family and so we decided to create a gathering place that can bring together those we love most for years to come. Nestled within the myriad of inlets and islands that dot the Puget Sound north of Seattle, the cottage enjoys sweeping views of the Olympic mountains and Hood Canal. I consider it my official respite from the impending doom. Sadly it looks nothing like the inspiration images I’ve collected here.
Instead, it is going to take a LOT of work to get our little coastal cottage visitor ready – and in a very short period of time. Over the coming weeks, I plan to take you along on the entire design journey. I will be sharing everything with you – from the cottage’s current state, to all of my design inspiration and through the remodel process. If all goes according to plan, I’ll share a major before and after reveal in time to spend the holiday season with our family rather than more than 800 miles away.
Trust me, we’re going to have plenty to discuss, as I have to pick an entire household’s worth of things – from paint colors and kitchen cabinets down to dishware, bedding and everything in between. No design decision will be left unturned. It’s both exhilarating and incredibly daunting. These mood boards are just part my first ideation session for my dream vibe.
I’m hopeful sharing this process with you will offer you some fresh design ideas and positive inspiration as we all hunker down to weather what will undoubtedly be a stormy fall – be it literally or just politically. It’s been a rather dark year and I feel like this might be a way to share a little bit of light. I know I am very happy for the creative distraction. I hope you are too.
I can’t wait to share more very soon!
The post A September State of Mind appeared first on Apartment34.
Having a debt in collections can be nerve-wracking, especially when you’re trying to do the right thing and make every effort to pay your debt. It can be even more stressful when the debt collector refuses to work with you. Learn what you need to know about collection agency payment plans below.
Can a Debt Collector Refuse a Payment Plan?
It’s important to know that collection agencies aren’t legally obligated to accept or agree to payment plans. Debt collectors don’t have to work with you or agree to any payment schedules based on what you’re reasonably able to afford. Their goal is to collect as much of the debt as they can as quickly as they can.
Collection agencies don’t often work out extended or long-term payment plans. They are collectors, not lenders. They aren’t interested in slowly collecting monthly payments.
Is My Debt Past the Statute of Limitations?
The statute of limitations for creditors/collectors to file a lawsuit is based on the date of the last payment on the debt. The statute of limitations, which varies by state, restarts when you make any payment to a creditor. If you have attempted to make small monthly payments because you assumed the collector would ease up if they saw any money coming in, then you might simply have extended the collector’s ability to file a lawsuit on the debt.
Best Step: Pay Off a Debt in Collections
You can take some actions to validate the debt and ensure it’s accurate and truly owed. Make sure you understand your rights and stand up for them. But once you know you owe the money, the best step is often to pay off the debt. Even if you can’t pay off all of your debt, try to pay as much as you can.
What About Collection Agency Payment Plans?
If you can’t afford to pay the debt with cash on hand and can’t manage to restructure debt or loans to cover the balance, then you may need to make arrangements with the collection agency. You typically have two options: a settlement or a payment arrangement.
What Is a Settlement?
A settlement occurs when you pay part of the total owed, and the collector agrees to consider the account paid in full. Debt collectors are more likely to negotiate a settlement, often at much lower amounts, if they think there’s a chance that they may not be able to collect at all. You may be able to settle a debt for 50% or less of the total balance, for example.
In many cases, collection companies purchase these debts from creditors for pennies on the dollar. Obviously, they want to collect as much as possible. But as long as they collect more than they paid for the debt, it’s still a profit for them.
To negotiate a settlement, you’ll need some cash immediately to pay the agreed-upon amount. You may also owe taxes on the amount that is forgiven. The IRS considers forgiven debt as income for that year.
Do Collection Agencies Do Payment Plans?
Some collection agencies do consider payment plans. However, they are not legally obligated to agree to a payment plan. And in some cases, even if they agree to a payment plan, they may change the agreement later or file a lawsuit for the remaining amount owed. When entering into a payment agreement with a collection agency, make sure you get everything signed and in writing.
What Happens If You Don’t Pay a Collection Agency?
If you don’t pay a collection agency and you do owe the money, the collection agency may eventually file a lawsuit against you. If the agency gets a judgment in that lawsuit, it can seek repayment of the debt via legal methods such as wage garnishment or freezing your bank accounts.
What to Do if a Debt Collector Won’t Accept a Payment Plan
If you can’t pay the original creditor for any reason and the debt collector won’t work with you on a payment plan, you may need to find another way to make good on this debt. Luckily, you might have some options for other types of debt relief.
Consider a balance transfer card or consolidation loan to pay off the debt and make it “new” again. While you’ll still owe the money, you’ll owe it to a new creditor that has agreed to an account setup that lets you make monthly payments. It keeps you in debt a little longer, but if you make regular agreed-upon payments, it could raise your credit score in the long-term to make up for any hit you took on the collection
Consolidate and Save
The post Negotiating a Collection Agency Payment Plan: What You Need to Know appeared first on Credit.com.
Do you have kids? Are there children in your life? Were you once a child? If you plan on helping pay for a child’s future education, then you’ll benefit from this complete guide to 529 plans. We’ll cover every detail of 529 plans, from the what/when/why basics to the more complex tax implications and investing ideas.
This article was 100% inspired by my Patrons. Between Jack, Nathan, Remi, other kiddos in my life (and a few buns in the oven), there are a lot of young Best Interest readers out there. And one day, they’ll probably have some education expenses. That’s why their parents asked me to write about 529 plans this week.
What is a 529 Plan?
The 529 college savings plan is a tax-advantaged investment account meant specifically for education expenses. As of the passage of the Tax Cuts and Jobs Act (in 2017), 529 plans can be used for college costs, K-12 public school costs, or private and/or religious school tuition. If you will ever need to pay for your children’s education, then 529 plans are for you.
529 plans are named in a similar fashion as the famous 401(k). That is, the name comes from the specific U.S. tax code where the plan was written into law. It’s in Section 529 of Internal Revenue Code 26. Wow—that’s boring!
But it turns out that 529 plans are strange amalgam of federal rules and state rules. Let’s start breaking that down.
Taxes are important! 529 college savings plans provide tax advantages in a manner similar to Roth accounts (i.e. different than traditional 401(k) accounts). In a 529 plan, you pay all your normal taxes today. Your contributions to the 529 plan, therefore, are made with after-tax dollars.
Any investment you make within your 529 plan is then allowed to grow tax-free. Future withdrawals—used for qualified education expenses—are also tax-free. Pay now, save later.
But wait! Those are just the federal income tax benefits. Many individual states offer state tax benefits to people participating in 529 plans. As of this writing, 34 states and Washington D.C. offer these benefits. Of the 16 states not participating, nine of those don’t have any state income tax. The seven remaining states—California, Delaware, Hawaii, Kentucky, Maine, New Jersey, and North Carolina—all have state income taxes, yet do not offer income tax benefits to their 529 plan participants. Boo!
This makes 529 plans an oddity. There’s a Federal-level tax advantage that applies to everyone. And then there might be a state-level tax advantage depending on which state you use to setup your plan.
Two Types of 529 Plans
The most common 529 plan is the college savings program. The less common 529 is the prepaid tuition program.
The savings program can be thought of as a parallel to common retirement investing accounts. A person can put money into their 529 plan today. They can invest that money in a few different ways (details further in the article). At a later date, they can then use the full value of their account at any eligible institution—in state or out of state. The value of their 529 plan will be dependent on their investing choices and how those investments perform.
The prepaid program is a little different. This plan is only offered by certain states (currently only 10 are accepting new applicants) and even by some individual colleges/universities. The prepaid program permits citizens to buy tuition credits at today’s tuition rates. Those credits can then be used in the future at in-state universities. However, using these credits outside of the state they were bought in can result in not getting full value.
You don’t choose investments in the prepaid program. You just buy credit’s today that can be redeemed in the future.
The savings program is universal, flexible, and grows based on your investments.
The prepaid program is not offered everywhere, works best at in-state universities, and grows based on how quickly tuition is changing (i.e. the difference between today’s tuition rate and the future tuition rate when you use the credit.)
Example: a prepaid credit would have cost ~$13,000 for one year of tuition in 2000. That credit would have been worth ~$24,000 of value if used in 2018. (Source)
What are “Qualified Education Expenses?”
You can only spend your 529 plan dollars on “qualified education expenses.” Turns out, just about anything associated with education costs can be paid for using 529 plan funds. Qualified education expenses include:
- Room and board (as long as the beneficiary attends school at least half-time). Off-campus housing is even covered, as long as it’s less than on-campus housing.
Student loans and student loan interest were added to this list in 2019, but there’s a lifetime limit of $10,000 per person.
How Do You “Invest” Your 529 Plan Funds?
529 savings plans do more than save. Their real power is as a college investment plan. So, how can you “invest” this tax-advantaged money?
There’s a two-part answer to how your 529 plan funds are invested. The first part is that only savings plans can be invested, not prepaid plans. The second part is that it depends on what state you’re in.
For example, let’s look at my state: New York. It offers both age-based options and individual portfolios.
The age-based option places your 529 plan on one of three tracks: aggressive, moderate, or conservative. As your child ages, the portfolio will automatically re-balance based on the track you’ve chosen.
The aggressive option will hold more stocks for longer into your child’s life—higher risk, higher rewards. The conservative option will skew towards bonds and short-term reserves. In all cases, the goal is to provide some level of growth in early years, and some level of stability in later years.
The individual portfolios are similar to the age-based option, but do not automatically re-balance. There are aggressive and conservative and middle-ground choices. Thankfully, you can move funds from one portfolio to another up to twice per year. This allowed rebalancing is how you can achieve the correct risk posture.
Advantages & Disadvantages of Using a 529 Plan
The advantages of using the 529 as a college investing plan are clear. First, there’s the tax-advantaged nature of it, likely saving you tens of thousands of dollars. Another benefit is the aforementioned ease of investing using a low-maintenance, age-based investing accounts. Most states offer them.
Other advantages include the high maximum contribution limit (ranging by state, from a low of $235K to a high of $529K), the reasonable financial aid treatment, and, of course, the flexibility.
If your child doesn’t end up using their 529 plan, you can transfer it to another relative. If you don’t like your state’s 529 offering, you can open an account in a different state. You can even use your 529 plan to pay for primary education at a private school or a religious school.
But the 529 plan isn’t perfect. There are disadvantages too.
For example, the prepaid 529 plan involves a considerable up-front cost—in the realm of $100,000 over four years. That’s a lot of money. Also, your proactive saving today ends up affecting your child’s financial aid package in the future. It feels a bit like a punishment for being responsible. That ain’t right!
Of course, a 529 plan is not a normal investing account. If you don’t use the money for educational purposes, you will face a penalty. And if you want to hand-pick your 529 investments? Well, you can’t do that. Similar to many 401(k) programs, your state’s 529 program probably only offers a few different fund choices.
529 Plan FAQ
Here are some of the most common questions about 529 education savings plans. And I even provide answers!
How do I open a 529 plan?
Virtually all states now have online portals that allow you to open 529 plans from the comfort of your home. A few online forms and email messages is all it takes.
Can I contribute to someone else’s 529?
You sure can! If you have a niece or nephew or grandchild or simply a friend, you can make a third-party contribution to their 529 plan. You don’t have to be their parent, their relative, or the person who opened the account.
Investing in someone else’s knowledge is a terrific gift.
Does a 529 plan affect financial aid?
Short answer: yes, but it’s better than how many other assets affect financial aid.
Longer answer: yes, having a 529 plan will likely reduce the amount of financial aid a student receives. The first $10,000 in a 529 plan is not part of the Expected Family Contribution (EFC) equation. It’s not “counted against you.” After that $10,000, remaining 529 plan funds are counted in the EFC equation, but cap at 5.46% of the parental assets (many other assets are capped higher, e.g. at 20%).
Similarly, 529 plan distributions are not included in the “base year income” calculations in the FAFSA application. This is another benefit in terms of financial aid.
Finally, 529 plan funds owned by non-parents (e.g. grandparents) are not part of the FAFSA EFC equation. This is great! The downside occurs when the non-parent actually withdraws the funds on behalf of the student. At that time, 50% of those funds count as “student income,” thus lowering the student’s eligibility for aid.
Are there contribution limits?
Kinda sorta. It’s a little complicated.
There is no official annual contribution limit into a 529 plan. But, you should know that 529 contributions are considered “completed gifts” in federal tax law, and that those gifts are capped at $15,000 per year in 2020 and 2021.
After $15,000 of contributions in one year, the remainder must be reported to the IRS against the taxpayer’s (not the student’s) lifetime estate and gift tax exemption.
Additionally, each state has the option of limiting the total 529 plan balances for a particular beneficiary. My state (NY) caps this limit at $520,000. That’s easily high enough to pay for 4 years of college at current prices.
Another state-based limit involves how much income tax savings a contributor can claim per year. In New York, for example, only the first $5,000 (or $10,000 if a married couple) are eligible for income tax savings.
Can I use my state’s 529 plan in another state? Do I need to create 529 plans in multiple states?
Yes, you can use your state’s 529 plan in another state. And mostly likely no, you do not need to create 529 plans in multiple states.
First, I recommend scrolling up to the savings program vs. prepaid program description. Savings programs are universal and transferrable. My 529 savings plan could pay for tuition in any other state, and even some other countries.
But prepaid tuition accounts typically have limitations in how they transfer. Prepaid accounts typically apply in full to in-state, state-sponsored schools. They might not apply in full to out-of-state and/or private schools.
What if my kid is Lebron James and doesn’t go to college? Can I get my money back?
It’s a great question. And the answer is yes, there are multiple ways to recoup your money if the beneficiary doesn’t end up using it for education savings.
First, you can avoid all penalties by changing the beneficiary of the funds. You can switch to another qualifying family member. Instead of paying for Lebron’s college, you can switch those funds to his siblings, to a future grandchild, or even to yourself (if you wanted to go back to school).
What if you just want you money back? The contributions that you initially made come back to you tax-free and penalty-free. After all, you already paid taxes on those. Any earnings you’ve made on those contributions are subject to normal income tax, and then a 10% federal penalty tax.
The 10% penalty is waived in certain situations, such as the beneficiary receiving a tax-free scholarship or attending a U.S. military academy.
And remember those state income tax breaks we discussed earlier? Those tax breaks might get recaptured (oh no!) if you end up taking non-qualified distributions from your 529 plan.
Long story short: try to the keep the funds in a 529 plan, especially is someone in your family might benefit from them someday. Otherwise, you’ll pay some taxes and penalties.
It’s time to don my robe and give a speech. Keep on learning, you readers, for:
An investment in knowledge pays the best interest
Oh snap! Yes, that is how the blog got its name. Giving others the gift of education is a wonderful thing, and 529 plans are one way the U.S. government allows you to do so.
If you enjoyed this article and want to read more, Iâd suggest checking out my Archive or Subscribing to get future articles emailed to your inbox.
This articleâjust like every otherâis supported by readers like you.
If you have a special child in your life, you may be wondering what to put under the tree this year. One long-lasting and truly meaningful way to show the child in your life that you care is by taking a few minutes to set up a UGMA/UTMA account and give them a leg up in life.
The earlier you open a UGMA or UTMA account for a child, the longer your initial gift has to grow, thanks to the magic of compound interest. For example, investing just $5 a day from birth at an 8% return could make that child a millionaire by the age of 50. By setting up a UGMA/UTMA account, youâre really giving your beneficiary a present that grows all year round. Now, thatâs a gift theyâre sure to remember!
What is a UGMA/UTMA account?
UGMA is an abbreviation for the Uniform Gifts to Minors Act. And UTMA stands for Uniform Transfers to Minors Act. Both UGMA and UTMA accounts are custodial accounts created for the benefit of a minor (or beneficiary).
The money in a UGMA/UTMA account can be used for educational expenses (like college tuition), along with anything that benefits the child – including housing, transportation, technology, and more. On the other hand, 529 plans can only be used for qualified educational expenses, like summer camps, school uniforms, or private school tuition and fees.
Itâs important to keep in mind that you cannot use UGMA/UTMA funds to provide the child with items that parents or guardians would be reasonably expected to provide, such as food, shelter, and clothing. Another important point is that when you set up a UGMA/UTMA account, the money is irrevocably transferred to the child, meaning it cannot be returned to the donor.
Tax advantages of a UGMA/UTMA account
The contributions you make to a UGMA/UTMA account are not tax-deductible in the year that you make the contribution, and they are subject to gift tax limits. The income that you receive each year from the UGMA/UTMA account does have special tax advantages when compared to income that you would get in a traditional investment account, making it a great tax-advantaged option for you to invest in the child you love.
Hereâs how that works. In 2020, the first $1,100 of investment income earned in a UGMA/UTMA account may be claimed on the custodianâsâ tax return, tax free. The next $1,100 is then taxed at the childâs (usually much lower) tax rate. Any income in excess of those amounts must be claimed at the custodianâs regular tax rate.
A few things to be aware of with UGMA/UTMA accounts
While thereâs no doubt that UGMA/UTMA accounts have several advantages and a place in your overall financial portfolio, there are a few things to consider before you open up a UGMA/UTMA account:
- When the child reaches the age of majority (usually 18 or 21, depending on the specifics of the plan), the money is theirs, without restriction.
- When the UGMA/UTMA funds are released, they are factored into the minorâs assets.
- The value of these assets will factor into the minorâs financial aid calculations, and may play a big role in determining if they qualify for certain programs, such as SSDI and Medicaid.
Where you can open a UGMA/UTMA account
Many financial services companies and brokerages offer UGMA or UTMA accounts. One option is the Acorns Early program from Acorns. Acorns Early is a UGMA/UTMA account that is included with the Acorns Family plan, which costs $5 / month. Acorns Early takes 5 minutes to set up, and you can add multiple kids at no extra charge. The Acorns Family plan also includesÂ Acorns Invest, Later, and Spend so you can manage all of the familyâs finances, from one easy app.
During a time where many of us are laying low this holiday season due to COVID-19, remember that presents donât just need to be a material possession your loved one unwraps, and then often forgets about. Give the gift of lasting impact through a UGMA/UTMA account.
The post Why UGMA/UTMA Accounts Are the Perfect Holiday Gift appeared first on MintLife Blog.