Working Moms Group - UT

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Topic

Retirement and College Savings 101

Date

Attendees

Presenter: Sara Glakas, Black Barn Financial

Other Attendees:

Discussion Notes

  • Investing: looking toward the future
  • looking to reach a long term goal: retirement and child college expenses
  • Retirement
  • Social Security: about 40% of average worker income
  • TRS (defined benefit plan): # yrs of service x 2.3% x average of highest salary years
  • 403b or 457 (voluntary, defined contribution plan): save money today, let it grow, use the money to the pay bills in the future
  • College
  • Income
  • Student Loans
  • 529 plans or Coverdell ESA plans
  • Retirement:
  • Roth: timing when taxed
    • Traditional: pre-tax (dont pay tax today, but pay tax when you get the money)
    • Roth: contributions are in post-tax (have already paid your taxes) and all the growth comes out tax free as well
    • 457: No 10% penalty if pull the money out early
  • 529: MUST be used to educational benefits better to have an account for each kid; can change the beneficiary
    • each state sponsors a 529
    • main benefit: tax breaks on state taxes
    • Vanguard: Nevada ($3000 to start but take out least amount of fees) 
  • Questions to ask financial advisor:
    • How are you getting paid? (if paid by the customer good, on commission for selling financial products, not good!)
    • Fudiciary versus suitability: Are you a fudiciary?
  • Roth IRA: all you need is earned money and you can set up a Roth for your kid

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