Vanguard has posted the first two publications in the series online:
College tuition is one of the most expensive investments most families will make and it comes with distinct financial challenges. The first paper in the series goes beyond the basics of 529 plans, helping parents and students understand how financing college using a variety of sources and accounts can affect their broader financial situation. The report also addresses how investments and income are factored in to financial aid eligibility, tactics for maximizing tax incentives, and how these decisions can impact the ability to meet other financial goals, particularly retirement.
Many investors hold substantial tax-deferred retirement accounts, such as traditional IRAs and 401(k)s. Although discussions around converting these tax-deferred accounts to Roth accounts are typically targeted at pre-retirees, conversions in retirement can serve as a valuable wealth transfer tool in an investor's overall estate plan. The second paper in the series details how retirees can take advantage of the tax treatment of
Two additional papers will be available in the coming weeks that will focus on the topics of cash implementation and charitable giving.
Vanguard is one of the world's largest investment management companies. As of
All investing is subject to risk, including the possible loss of the money you invest. Roth IRA are tax free if you are over age 59½ and have held the account for at least five years; withdrawals taken prior to age 59½ or five years may be subject to ordinary income tax or a 10% federal penalty tax, or both. (A separate five-year period applies for each conversion and begins on the first day of the year in which the conversion contribution is made).
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