certified financial planner

Do I Need a Financial Planner?

Retirement is approaching, and so far you've done a great job of planning for it on your own. Do you need to hire a financial planner or can you keep going solo? That's what Michelle was wondering on the latest BONUS call.

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“Better Off” is sponsored by Betterment.

Have a money question? Email us here or call 855-411-JILL.

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"Better Off" theme music is by Joel Goodman, www.joelgoodman.com.

Active vs. Passive Investing

Active versus passive investing has been a decades-long debate among long-term savers. The active argument is that with time, energy and analysis, investors can beat an index or basket of fixed securities. The passive credo is simple: reams of data support the notion that purchasing a fixed basket, like an index fund, within most asset classes, will produce superior returns over long time horizons.

Legendary investors like Warren Buffett, John Bogle (the founder of Vanguard) and Charley Ellis, have extolled the virtues of passive investing, because even if low cost, tax efficient active management does exist – and indeed there are some stars out there – most investors either blow up their own plans or choose expensive active managers that routinely underperform.

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Although I have been an advocate of passive investing for a while, I also know that many people really want to try the active route. That’s why I invited two guests, both of whom are active acolytes from Investor’s Business Daily (IBD®) to help me try to guide those folks who are willing to take a stab at the active approach.

Chris Gessel directs the news, market, mutual fund, company and technology coverage that appears in IBD and Justin Nielsen is a member of the markets team at IBD. They say that if you have the itch, there are five critical questions that you must ask yourself:

1. Can you admit that you are wrong?
2. Do you like history?
3. Can you fight the urge to bargain shop?
4. Do you like to stick to rules or go with your gut?
5. Do you like to get your hands dirty or leave it to the experts?

Regardless of whether you have some experience or not, Chris and Justin recommend that you start with small amounts of money, in order to test out whether or not you have the discipline to do it.

If interested in joining Investor's Business Daily, you can click here for their current special offer.

Have a money question? Email us here or call 855-411-JILL.

Connect with me at these places for all my content:

https://twitter.com/jillonmoney

https://www.facebook.com/JillonMoney

https://www.instagram.com/jillonmoney/

https://www.linkedin.com/in/jillonmoney/ 

http://www.stitcher.com/podcast/jill-... 

https://apple.co/2pmVi50

"Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com.

The Power of Compound Interest + Active vs. Passive Investing

We started the show with Sam in Seattle, who only in his 30s, is worried he won't have enough saved when it's time to retire. Sam and his wife are in great shape...and let's just say that Sam is probably very grateful I gave him a quick lesson in the power of compound interest.

Next up was Peggy from Connecticut who was wondering if it makes sense to go ahead and pay off a home equity line of credit (HELOC) instead of paying the $200 a month in interest. 

We wrapped up hour one by answering a handful of emails. 

Active versus passive investing has been a decades-long debate among long-term savers. The active argument is that with time, energy and analysis, investors can beat an index or basket of fixed securities. The passive credo is simple: reams of data support the notion that purchasing a fixed basket, like an index fund, within most asset classes, will produce superior returns over long time horizons.

Legendary investors like Warren Buffett, John Bogle (the founder of Vanguard) and Charley Ellis, have extolled the virtues of passive investing, because even if low cost, tax efficient active management does exist – and indeed there are some stars out there – most investors either blow up their own plans or choose expensive active managers that routinely underperform.

IBD_stacked_294.jpg

Although I have been an advocate of passive investing for a while, I also know that many people really want to try the active route. That’s why I invited two guests, both of whom are active acolytes from Investor’s Business Daily (IBD®) to help me try to guide those folks who are willing to take a stab at the active approach.

Chris Gessel directs the news, market, mutual fund, company and technology coverage that appears in IBD and Justin Nielsen is a member of the markets team at IBD. They say that if you have the itch, there are five critical questions that you must ask yourself:

1. Can you admit that you are wrong?
2. Do you like history?
3. Can you fight the urge to bargain shop?
4. Do you like to stick to rules or go with your gut?
5. Do you like to get your hands dirty or leave it to the experts?

Regardless of whether you have some experience or not, Chris and Justin recommend that you start with small amounts of money, in order to test out whether or not you have the discipline to do it.

If interested in joining Investor's Business Daily, you can click here for their current special offer.

Have a money question? Email us here or call 855-411-JILL.

Connect with me at these places for all my content:

https://twitter.com/jillonmoney

https://www.facebook.com/JillonMoney

https://www.instagram.com/jillonmoney/

https://www.linkedin.com/in/jillonmoney/ 

http://www.stitcher.com/podcast/jill-... 

https://apple.co/2pmVi50

"Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com.

529 Plans and College Savings

Happy belated #529Day, a day when states try to boost interest and participation in 529 education savings programs with various incentives.

To mark the occasion, we have one of the foremost authorities on 529 plans, Andrea Feirstein, founder and Managing Director at AKF Consulting Group, a leading strategic advisor to public administrators of state investment programs.

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Andrea was extremely knowledgeable and we touched on several topics, including:

What is a 529? A tax-advantaged savings plan designed to encourage saving for future education costs. 529 plans are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code.

What’s the tax benefit of a 529 plan? Withdrawals for qualified higher education expenses and earnings in the account are not subject to federal income tax and, in most cases, state income tax. Additionally, some states offer residents of the state specific incentives, like the ability to deduct contributions from state income tax or a matching grant.

What does a 529 plan cost? Fees and expenses vary widely from plan to plan and can include start-up fees, maintenance fees, or sales charges. In general, advisor-sold plans cost more than direct-sold plans. The Financial Industry Regulatory Authority (FINRA) has developed a tool to help you compare how these fees and expenses can reduce returns.

What happens if my kid doesn’t go to college? Most states allow you to tap the accounts for other children in the family or even for the parents. Those withdrawals that are not used for qualified higher education expenses will be subject to state and federal income taxes and an additional 10 percent federal tax penalty on earnings.

What has changed with the 2018 tax law? Americans can now withdraw funds tax-free from 529 plans to pay for K-12 tuition and other eligible expenses at private and religious schools, up to $10,000 per year. But there’s a caveat: Not all states will conform to the new federal rules. That means before you pull money, be sure to double check with your state.

“Better Off” is sponsored by Betterment.

Have a money question? Email us here or call 855-411-JILL.

We love feedback so please subscribe and leave us a rating or review in Apple Podcasts!

Connect with me at these places for all my content:

https://twitter.com/jillonmoney

https://www.facebook.com/JillonMoney

https://www.instagram.com/jillonmoney/

https://www.linkedin.com/in/jillonmoney/ 

http://www.stitcher.com/podcast/jill-... 

https://apple.co/2pmVi50

"Better Off" theme music is by Joel Goodman, www.joelgoodman.com.