Life Strategy Funds
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Sergio Said:
college financing with universal life policies?We Answered:
I would not use life insurance to save for college expenses. They have very high fees and are not designed to save for college.If you are saving for college expenses, you should take advantage of federal tax breaks aimed at families saving and paying for college. These include the following:
Qualified Tuition Programs (529 plans)—Earnings grow tax-deferred and distributions are tax-free when used for qualified post-secondary education costs.
Coverdell Education Savings Accounts— Earnings grow tax-deferred and distributions are tax-free when used for qualified post-secondary education costs. May also be withdrawn tax-free for primary and secondary school expenses.
However, don't invest more in these than you child will need for college. There are tax penalties for non-educational withdrawals. Additional funds should be invested in a UGMA or UTMA.
For more information read this link, where most of this information comes from:
http://www.savingforcollege.com/
April Said:
Is this a good strategy for controlling people through regulations?We Answered:
it is extortion -vote ronpaul2008.comEric Said:
Would funds collected by pro-life activists be better spent on adoption programs rather than shame tactics?We Answered:
You're not joking. If they would put half of the massive amounts of religious-funded money into health-care programs for pregnant mothers and children (both of which Planned Parenthood funds and lobbies for), this country would be a lot nicer place.Instead they choose to spend it on traveling speakers toting massive dead-fetus set-ups, highway billboards, and promoting abstinence-only education which encourages kids not to use birth control and discriminates against homosexuals.
Roberto Said:
The small company I work for does not have a pension program or a 401k. Best retirement strategy besides IRA?We Answered:
best strategy? Talk to your boss about installing a 401k. Costs are minimal nowdays. startup costs are about 2k and annual costs are about the same. Both are deductible expenses and small businesses even get a credit for first year (I think it's still available anyways). Many plans that I set up for my clients involve some contributions on side of ownership but in most the amount that they have to contribute to the staff through matches and contributions is LESS then they would have to pay to the IRS in taxes if they didn't have the plan. Essentially like this...install a 401k and provide 3% of pay to your 10 employees who average 50k in salary. That's 15k in 3% contributions. Boss then puts away 15k of his own (20k if he's over 50 years old) and receives his own 3%. If we assume boss makes 200k then his total tax deductable contributions is his 15k PLUS the 21k in other contributions for 36k. Boss's tax rate is 38% which equates to a tax savings of about 14k. So, Boss is now able to put away 21k of his own money and it cost him a total of 3k to do it. 1k to his employees (uncle sam funds the rest through lower taxes) and 2k to the company doing the recordkeeping.You wanted the best...I gave it to you. Talk to your boss and get him to start a 401k. Make sure it has Roth contributions and fund them at 7,500 each. You'll be glad you did.
Leslie Said:
Is the vangaurd moderate life strategy fund right for me?We Answered:
It will duplicate. However, the Life Strategy funds also have a fixed-income component that the stock funds lack.The Life Strategy funds are designed to be standalon diversified asset allocation funds. You move from the "Growth" through the "Moderate", "Conservative" and "Income" funds depending on your time horizon.