Being financially "balanced" can mean different things to different people we meet. From our perspective as financial planners, balance means maintaining quality of life today while taking the steps to secure quality of life in the future. Often this discussion involves the issue of paying down debt efficiently while still addressing other financial concerns. We recently met with someone who was working on paying down debt while trying to aggressively save for retirement at the same time. Her focus on these two items had lowered her current quality of life significantly. This post describes the approach we recommended to balance out her current financial needs with her future financial goals.
By Ellen A. Kvenild | Tuesday, July 25, 2017
Many of our clients are interested in saving and investing to help pay college costs for their children or grandchildren. We often suggest 529 college savings plans to help achieve these goals. For Minnesota residents, lawmakers recently passed new legislation with tax incentives to encourage college savings. Prior to 2011, some Minnesota residents received a matching grant from the State on 529 plan contributions if they were within the income limitations and if the state-specific 529 plan was used. The matching program was taken away in 2011 and there have been no incentivized programs until now.