Tucker Fahlen, Wealth Advisor

THE MORTGAGE BALL AND CHAIN.
62% of all outstanding mortgages have
yields of less than 4%. California, Utah
and North Dakota have the highest share
of sub-4% mortgages (71%), but in all
50 states, at least half of outstanding
mortgages have rates of less than 4%.
(Source: Bloomberg)

IT’S PAY UP TIME. On 4/21, the
Department of Education announced
that on 5/4 it will resume “involuntary
collections” for student loans that were in
default. Of the 42.7 million Americans
with total student loans outstanding
of $1.6 trillion, only 38% are in
repayment and current on their loans.
(Source: Department of Education)

What's something you wish you understood better about taxes?

529 vs taxable brokerage account

529 pros:
- tax-free growth
- Potential State tax benefits. In MI we get a state income tax deduction up to $10,000 of contributions
- Can be used for College Education expenses OR K-12 private tuition
- Can also be used for trade schools or vocational schools
- IF the account has been open for 15 years for the same beneficiary you can roll leftover funds into a Roth IRA in the beneficiaries name. Up to the current annual limit ($7,000) for 2024 and a lifetime maximum of $35,000.
- Anyone can contribute: grandparents, parents, relatives, friends

529 Cons:
- Best used if you know you'll spend money on education at some point in the future
- You pay a 10% penalty and taxes on the earnings portion if you take a nonqualified withdrawal
- Investment options may be limited based on the 529 program available to you

Taxable Brokerage Account (a.k.a Non-Retirement Account):

Pros:
- You can open an account in the parents name and maintain control over the assets and investments
- Investment flexibility - Invest in any asset class or type of investment such as mutual funds, ETFs, stocks, bonds, CDs, Money markets.
- Use the money for any reason in the future: education, start a business, wedding, first home purchase, etc.
- Gift to the child whenever you deem appropriate even if that means waiting until later in life.

Cons:
- Pay taxes on applicable interest, dividends, capital gains as your account grows each year
- If you plan to gift the money in the future you must stay within the gift limits or file gift tax return

Give me a call today if you want to discuss which would be the best fit for your family!

MAX OUT YOUR IRA or ROTH IRA - You have until the April 15th tax filing deadline to maximize IRA contributions for last year. The 2023 maximum is $6500 or $7500 if you're over age 50!

WHAT’S MINE IS YOURS – A study of engaged and newlywed couples found that those who merge their money into joint bank accounts sustained statistically stronger than average relationship quality in the first two years of marriage, while those that kept their money in separate accounts experienced statistically significant declines in relationship quality. (SOURCE: JOURNAL OF CONSUMER RESEARCH)

I highly recommend this if you're married!

The new FAFSA form will be released this month. There are multiple changes to read about. Most notably perhaps is that 529 college savings plan assets in grandparents’ or other family members’ accounts will no longer be reported on the FAFSA and therefore, 529 assets will have no impact on financial aid calculations.

Grandparents this is a great way to support your kids and grandkids pursue higher education!

New FAFSA: What every advisor, parent and student should know | Franklin Templeton Recent legislative changes will impact the student financial aid process. Dr. Peter Mazareas, shares some need-to-know information.

If you have student loans take the time to read this!!

It was just released that the Supreme Court voted 6-3 against federal student loan forgiveness. This decision has been months in the making and will impact millions of borrowers. The decision was expected given the court's conservative majority and their recent track record of striking down executive branch policies.

If you haven't been following along, here's a quick summary. Last year, the Biden administration announced they were going to forgive $400 billion worth of federal student loans. Like most political decisions, this was met by enthusiasm by some and harsh criticism by others. There were numerous lawsuits that tried to block the administration from going through with this. Two of those legal challenges made it all the way to the Supreme Court.

What do you do if you have federal student loans?? Contact your student loan servicer and get the details of when your payments will start and how much the payment will be. Many borrowers are still in denial that payments will be required in just a few months. Plan your budget so you ensure you'll have no problems making your scheduled payments.

And remember, your wealth building journey is defined by how much of your income you can consistently invest. Getting this right will make you financially independent regardless of what the government does.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.‎

-Vivi & Shane


https://www.personalfinanceclub.com/supreme-court-rules-against-student-loan-forgiveness/

I passed my CPFA exam! I'm excited to continue to serve my retirement plan clients with excellence as a Certified Plan Fiduciary Advisor! Hit me up if you have questions about starting or improving a retirement plan for your business.

Join now if you want to get an update on the markets, SECURE 2.0 and more!

If you miss it I will post the replay

Welcome! You are invited to join a webinar: Winter Investment Forum. After registering, you will receive a confirmation email about joining the webinar. Join your Embark advisor team as we discuss recent market events, opportunities we see moving forward, and share ideas on how small behaviors lead to significant results. This exclusive event is for Embark Financial Partners clients and their guests. Ample time will be provided for Q&A after our dis...

Join us on November 29th to cheer on our US Men's National Team in the World Cup. USA vs. Iran at 2pm EST.

http://events.constantcontact.com/register/event?llr=596wusebb&oeidk=a07ejh31qg56d7d1cd3&source_type=fbpo&source_id=3bd45397-3ec8-4fda-899a-1f00e14a2c44