Paying for College Without Student Loans Using Coverdell, Roth IRA, & 529 Plans

Transcript:

(00:00) paid for his kid to go through Georgetown with the covered L and he used the covered l in real estate deals that he could drop two grand in he wholesale a deal he do an option on a deal but if I got Grandma and Grandpa just writing wanting to write a check oh my gosh I’m sit in 529 all day long get it in there go for it try to find the best fund you can with the best rate of return good luck Roth IRA and I know you’re thinking Roth IRA that’s for retirement talking what the hell are you talking about what are you smoking over
(00:23) there you’re Roth IRA for your retirement but I’m talking about a Roth IRA for your kids and here’s why welcome everybody to another episod episode of the directed Ira podcast my name is Mark kler I’m here with the amazing Matt Sorenson both of us fathers and uh kids uh young and old who have been through college going through college a little of both trying to get them in college Bo I don’t I don’t know did I summarize that right I mean it’s it’s a process it’s a process you got to get them in then you got to figure out how to
(00:54) freaking pay for it we’re going to focus on the second part here getting them in and raising them that’s not what you want to know from Mar map let’s be honest although we think we’re good parents you can see I started that out with my talk with my therapist yeah I like I better be careful what I say here me help me yeah no being a parent is so rewarding and so difficult right everybody out there and this financial piece re this could be the easy part I know that sounds crazy but if with the right strategy this is an objective
(01:24) issue that can be very straightforward managing kids and their personalities and who they’re going to be someday that’s beyond the scope of this podcast and probably most podast yeah yeah yeah let me just say on that one May the force be with you but we want to talk about how you can pay for it when your kids do get into college it’s whether it’s Community College the private university the State University you a lot of options there and a lot of cost differences um but we want to talk about optimizing all these tools you may have
(01:50) heard out there the 529 the coverdell we’re going to throw on a Roth IRA you might not have that on your list right now how do I optimize these different ways to save to make sure I’ve got enough money set aside that my kids can go to college and not come out with student debt cuz the backside of this is the trillions of dollars in student loan debt and the generations like my own and the ones behind us that are like burdened by student loan debt are they going ever be able to buy a house they’re going to have Financial Freedom
(02:18) they got to work through this atrocious student loan debt so we want to help our kids the best we can to have to avoid that and I don’t think we need to make paint the picture even uglier but I’ll just say this too um uh the rates of young people having children buying homes uh leaving their parents’ homes and the all of those metrics are not good they’re going in the wrong direction and student debt and being able to afford college is a major contributor to all of those issues so we hope to provide at least some sort of
(02:50) solution to the world crisis out there and uh I think we’ve got a good one now Matt to prove to many of you our listeners that think that this is so scripted because it’s just such an incredible podcast uh I want to uh call an audible here to kind of prove the point that it is live and Uncut okay um I’m going to use an analogy a metaphor okay from our sister podcast okay okay for those that haven’t listened to our sister podcast the Main Street business podcast please get over there it is a lot of fun much more Broad in nature very
(03:20) entrepreneurship oriented Main Street business oriented and we talked about raising Capital recently on a show and we talked about three lanes do you think we could have three lanes here I I think we can have three lanes here and there’s a big reveal at the end we’re going to talk about the big reveal we’re not going to give it to you now the perfect strategy but we got to talk about these three lanes on the freeway could we do that we could do that and you might have multiple vehicles too you you could I don’t road yeah so we don’t know you
(03:45) might have more than one kid going to college that’s true wow oh my gosh that’s right maybe you got a trailer you know I don’t know we going to we are going to mil this metaphor to to Kingdom Come so why don’t you tell everybody the three lanes to choose all right we got the 529 you’ve heard about that we’re going to talk about that there’s some things we like about it there’s some things we hate on it we want to get to that so you know the covered L sometimes called the college educ education savings account you love the coverdell
(04:09) there’s only so much you can put in we’re going to hit that and then also the Roth IRA you might not have thrown that on the list here we’re talking about a Roth IRA for your kids I’m not talking about your Roth IRA that’s for retirement we’re talking about doing a Roth IRA for your kids that’s an awesome strategy that’s actually my favorite we’ll get to that and how that can work and I my favorite is well number two the coverdell but I think our secret strategy we’re going to share at the end is truly our favorite and we both can
(04:34) get behind but we’re going to debate these pretty hard if we have to hold them in a vacuum Now Matt I like the way you presented those three lanes because those are probably the most in that order yeah are the most well-known common or Wall Street prolongated uh by by far so the 529 uh most of everybody has heard about that at least heard about it but may not be able to explain it let’s at least break it down what it is and then we can give some pros and cons and then ultimately why or where would we use it so do you want to describe it the 529
(05:06) yeah the 529 is basically a state created fund okay so by the way when you put the money in your investment’s chosen the state is going to manage that fund and their pre-approved program and that’s the investment return you’re going to get so that’s the first knock on it but that’s organizationally what it is and and we could before yeah before we start knocking on it the the states can have multiple 529s but it but there when we say State we’re not talking federal or you know like the state you know in in a parenthetical way we’re
(05:35) saying literally Michigan has 529 plan Utah has one Florida has one and could have multiple 529 plans that might do different things so it’s a state ran fund where you would invest in that and a lot of these states allow you to use the funds in their 529 for other college institutions in other states or private or public some states have 529 plans where you have to use the money in that state so there are some unique 529 type funds you would want to choose the right one but it’s managed by the state you put the money in the 529 at the state
(06:08) level and um and you’re Off to the Races and and and I’ll say this on the 529 account real quick on the Coverdale just to describe what they are it’s a fund that’ll grow and then the child can pull out that money to go to college and the rules of what you can pull it out for are the same between the Coverdale and 52 now what happens if you don’t use the money is a different rules but once the money is in there if you’re going to college you can use it for tuition books um supplies um some housing some certain
(06:39) things that are just for that college experience and and it’s taxfree it grows taxfree comes out taxfree for those things that’s what a 529 is and this could even be a trade school it doesn’t have to be the university this could be Community College it’s public private so there’s lots of options there now the good thing about the 529 let me just say that is you can put $18,000 year it’s kind of follows the gifting rules on how much you can gift a child per year every year you can put in $188,000 if you’re single so if you’re a married couple you
(07:08) could do $36,000 per kid that can go into their 529 that’s a huge perk on the 529 because it’s a lot more money that I can throw in than some of these other options we’re going to get to one thing that’s unique too on a 529 you can do right now is you can do a fiveyear you can frontload 5 years of contributions and say hey I’m going to throw 90k in in one year and that’s going to count for my five years the $188,000 that’s $188,000 Time 5 years now you have to elect that and not it on your tax return but that way you can get $90,000 in
(07:39) single 180,000 married in for one kid into a 52 let’s say your small business did well let’s say you had a big bonus at work or a great year or you sold some assets and you’re like I really want to set this money aside and dedicate it for my college my kids college savings and I haven’t done a great job they’re now 13 or 14 and I’m at zero and it’s right around the corner so I want to frontload it so there’s a couple of the options and I think that’s the number one benefit to me of the 529 is I can get a lot more money set aside in the 529 yeah
(08:09) and there’s also maximum contributions that are even greater than that because Grandpa and Grandma may come to play and they can put money in it up to their gifting limits and so you could actually put there different states have different contribution maximums over the life of the plan yeah uh on top of how much it earns in their little Investment Portfolio okay so I think you’ve already figured out the good thing the good thing is you can put a lot of money into it the bad thing is and Matt alluded to it is the state is going to invest this
(08:39) money the way they want to and let me just tell you trying to figure out what their fees they charge and with your actual Roi on that money is almost impossible they have put so much barrier to entry on Google Searchers or whatever to try to find that information out because I can imagine the fees on these are ex just exorbitant and most parents don’t care or don’t take the effort to find out what those investment rates of returns are because the money’s there it’s seemingly growing it’s there for the kids college they feel like CH
(09:13) they’ve checked a box and they walk away yeah so and it is better than putting money in a savings account or just like a checking account right or like you know you’re get it’s better than that now maybe right now interest rates might be high in a high yield of savings account but um so that is the big on the 529 limited investment options you’re stuck with the 529 options that are state run and state decided by depending on the state where you set up the 529 and so um that is the biggest knock on why we don’t love 529s so I would say
(09:46) and in the order of things is fund some of these other accounts first well now we’re getting into strategy let’s just describe the three accounts but I want to say that because I want you to know I like funding the 529 last okay I don’t your first 5,000 bucks you might want to set aside I’m not dropping in$ 529 but if you’re like no man I’m I’m behind I got a kid in high school I need to start dropping some money aside and I want to start doing it now we might come back to the 529 because you’re going to need to
(10:12) you get more bang for your buck on how much you can get in yeah and they can actually I’m I’m actually even just looking at the article on my blog where I summarize what the expenses are and and and a variety of things here too um and it’s varied by the way you’re going to get you know 50 different states and each one of them has a couple different options so there’s a lot of variety of it the gist of it is your return sucks yeah and I but you know where I I’ll say I love the 529 and this is why when you started to an order of things if Grandpa
(10:42) and Grandma want to give my kid set aside money for my kid for college 529 that’s right because I’m going to take care of the coverdell on the Roth and and I’m going to control those mechanisms and um but if I got Grand and grandpa just writing wanting to write a check oh my gosh I’m sending the 529 all day long get it in there go for it try to find the best fund you can with the best rate of return good luck and but but when you start to put money in I agree completely with you Matt I’m going to go to these other two options first
(11:13) all right now the most the second most common and we’ll get these all on the table then we can talk strategy ultimately let me before you hit the second I had one more thing on the 529 okay there now you do not get a tax seduction when you put the money into this by the way okay there’s no tax seduction for you on the federal level there are some state that give you a state income tax deduction for contributing for T9 in the state you where you reside so you might want to look at that an incentive to use the 529 in your state but you can’t
(11:40) there are some states I think it’s about 15 to 20 um Arizona I know is one where I’m at where you do get a state income tax deduction now state income tax here is not that big so it’s not a huge incentive it’s not as big as the federal tax rate but it’s something that’s on the table yeah all right now Lane number two uh is the coverdell sometimes called the esa education savings account coverdell is the was named that from the senator that help passed the initial legislation for this and here’s how they work it’s a fund again that grows tax
(12:11) free and when the money is pulled out for Education expenses it comes out for those expenses for the child tax-free and you’re Off to the Races the the difference is you can only put in $2,000 per year per child from all sources so if Grandpa Grandma to put in two grand you’re done so if you want to put in 1 th000 Grandpa and Grandma to put in a th000 you’re done so it’s it’s not donor regulated it’s more recipient regul regulated each kid can only have 2,000 a year dropped into their account now that sucks yes but here’s the Silver Lining
(12:48) that coverdell can be self-directed you can invest it in anything you want you can put it in an LLC with rental property startups syndications buy crypto buy notes by stock bonds mutual funds or options you’re Off to the Races we even have on the the directed Ira website the crypto coverdell or the traditional coverdell or I mean you can just open these accounts tonight and put money in there and start investing them in how you see fit which means you’re going to be looking at 10 15 20% returns or more depending on your choice it’s up
(13:23) to you no promises that’s your choice of what you invested in that’s super powerful to me yeah and I think that’s why we love the coverdell in the first two grand I would probably drop it there maybe the Roth I’m going to get to that in a second but obviously I’m going to do that before the 529 in my mind because I want to invest it in something that can get a greater return even if I’m just doing an S&P 500 fund even if I’m like man I don’t have deals I can do $2,000 worth well I’m telling you the S&P 500 is crushing every 529 plan okay
(13:50) so even if you’re just doing that all right I’m still I think you’re still better off um with the 529 and we’ve seen that here though I’ve seen we have really good investor clients that are great and then I I have one client who’s paid for his kid to go through Georgetown with the covered L and he used the covered l in real estate deals that he could drop two grand in he wholesale a deal he do an option on a deal and he had over 100k in that coverd and I remember like $30,000 checks $40,000 checks going from this coverdell
(14:16) over to um Georgetown the kids for the kids college and so pretty expensive school so that’s the it could get to that if you’re a really good investor and that’s and that’s you now some of you might be like Matt I don’t know how to turn 2,000 on on a deal I still like it again because you can do S&P 500 or just think of it too if you got the the the six-year-old okay I got 10 years of contribution now I got 20K to play with that that can add up absolutely now second con so the first con is you can’t put in too much but the benefit being
(14:46) you can invest it but the other con is it can be income it’s income restricted on whether or not you can just throw it into account directly now many of you that listen to our podcast know that there’s a front door and a back door door to the Roth everybody can do a Roth you just might have to take two steps to go around to the back door same thing with the Coverdale if you make too much money I’ll give you the numbers here in a moment you can’t just walk in the front door and put money in a covered L for your any of your children and it’s
(15:13) based on the donor’s AGI adjust the gross income so if you make too much you can’t go in the front door but we have a backdoor method so the front door limit is if you’re single if you make more than 110 grand out if you make more than 2 20 grand out you the door’s shut on the front door the back door you want to explain the back door you want to throw down real quick yeah yeah the back door there’s a couple there’s kind of there’s two back doors really there’s a couple back doors okay that one would be the grandparents have
(15:43) the grandparents this is again like they could throw money in a 529 they might be retired their income might not be over the limits that we mentioned they could just throw in 2K a year for the kid you can give the grandparents the 2K or they can help whatever you know your Arrangement is there let the grandparents fund the uh the coverdell or what you can do and this is easier if your kids are a little bit older gift the child the 2K and the child makes the contribution to their own coverdell now they’ll need to have a bank account for
(16:10) that and so um so the that’s how the coverdell works now one important thing on the coverdell before you go further can I just say don’t give your kids the two grand you’re going to put them on payroll for the two grand so remember you don’t get a tax deduction to put money into the Coverdale but if on that backdoor method I could pay my parents for being on the board of directors of my company if you ever if you’re a small business owner take a deduction now you’re getting a write off and what do mom and dad Grandpa and
(16:38) Grandma do with that money they pay put it into the kids Coverdale or you pay the kids in your business and they put their money in their own Coverdale as the donor now you can still control the 529 as the but they’re the contributing donor we have all this documented on our uh contribution forms at direct at IRA so sweet so you can set up the account Grandpa and Grandma can put the money in or even your own child can put it in but don’t pay taxes and put it in take a ride off for paying grandpa and grandma
(17:10) or take a ride off for paying the kids now you’re getting a tax deduction through that backdoor method to contribute to the Coverdale which is so freaking cool yeah so that was the um supercharged backdoor version there now if you don’t have a business you don’t have a rental property you have nothing to do that you can still give the money the reason I say this and I’m just making a distinction here before we get to the Roth is you do not have to have earned income to make a $2,000 contribution to a covered up whether
(17:37) it’s is grandma or Grandpa living living off their savings or other things or this is your child that doesn’t have earned income you don’t there’s not an earned income requirement for a Coverdale contribution there is for the Roth which we’re going to talk about here separately but um but of course let’s throw a tax deduction on top of it for you if we can let’s pay your kids get them involved in the rental property of the small business yeah now before we get to the Roth there’s one other Factor here we need to cover and
(18:04) that is what happens if your child doesn’t use the money see in the Roth that’s going to be a whole other answer so when it comes to the 529 Coverdale they’re both a little different so I want to create the backdrop for this remember everybody here’s a quiz for you which account do you think Wall Street is more excited about and is going to Lobby to give you more options and flexibility in including contribution amounts let me repeat that which account 529 or Coverdale is Wall Street more hopped up on to get you every possible
(18:38) loophole because they get to control the investment that’s right the 529 okay so when it comes to the 529 if your kid doesn’t use all the money you’ve got six different ways you can move that money around you can give it to another beneficiary you can transfer to a grandchild kids it could be a sibling could be a cousin a niece a nephew you can start you can make student loan payments you can uh penalty-free scholarship withdrawals you can roll over 35,000 to a Roth IRA of the kid the beneficiary of the kid and that you have
(19:15) to have had the the 529 for 15 years this is a new rule went into effect this last year so that’s another cool one is like hey I I or even let’s say you just didn’t use all of it they went to college you didn’t use all of it I’d love to leave 35k left and there throw that into their Roth IRA in their 20s or 30s so so again if grandpa and grandma are wanted to throw down some money for your kids for college and the kids don’t end up using it in 15 years it’ll just drop into their Roth IRA so again but of course this is Wall Street you know
(19:46) creating massin naations here of of the Pro Plan so that they can manage the money because it’s going to be stuck in the freaking 529 for 15 years FYI and you’re going to be pulling your hair out with a crappy rate of return but again it’s free money if Grandpa and Grandma were going to throw it in there anyway okay now back to the Coverdale which we know because it’s self-directed it’s not going to have as many bells and whistles because Wall Street doesn’t care about the coverdell the contributions are low
(20:12) and you can pull the money and control it which they hate their only option is if the kid doesn’t use the money by age 30 then you can roll it to another beneficiary it’s a qualified family member which could be a grandchild of yours and or another child it can even be your yourself you may say I’m going to go back to PGA golf school which is a qualifying uh educational institution but anyway so you can roll that money that your kid doesn’t use by age 30 um one last point is once your kid turns 18 you cannot put in the $2,000 anymore so
(20:47) you have to keep you can put that money in up until that age bracket and uh it’s just and again this whole show is Not Gon to break down every aspect of the 529 or the cover deal go study up on them but you can already see there’s pros and cons so yeah and let’s say that you do have excess money left over and you got to take a distribution either from the 529 or the coverdell you’re like well I need to get the money back you know we didn’t end up using it okay you take it out but now you got to pay tax on this amount that you didn’t use
(21:17) and you got penalty you got to look at so that’s why we’re trying to move it around to other places where we can deploy that money and get it back out without tax or penalty I love of course the Roth roll over on the 529 yeah and I love the 529 there is no age limit on contributing to someone’s 529 so if your mom wakes up one day and says I’m going to go back to college in 5 years when your dad retires could you put money in my 529 for me yes you could do that so you can fund your mom’s 55-year-old your 55y old mom’s 529 account and 5 years
(21:48) from now she can pull it out for college so again Wall Street is going to bend over backwards to get your hard-earned money to invest it the way they want sorry financial advisers out there I love my financial advisors I just hate the Wall Street lobby that cow tells to them and doesn’t give us other options sorry I and I I’ll stand by that okay now after all that said Matt senson roll out Lane number three this is the fast lane this is the Lane Matt sson lies to this is the car poool Lane guys this is the lane you want to be in it moves
(22:20) faster it’s got a lot more options it’s going to get you where you want to go Roth IRA and I know you’re thinking Roth IRA that’s for retirement what are you smoking over there you’re Roth IRA for your retirement but I’m talking about a Roth IRA for your kids and here’s why we want to pay your kids out of your small business your rental property because we need them to have ear an income I can put 7K a year in my kids Roth IRA as long as they have 7K a year in ear income now this could be a babysitting job this could be their
(22:46) summer job maybe they have a part-time job through junior high or high school I certainly did worked on my dad’s rental properties my grandpa’s rental properties like okay I I could justify that getting that M that income dropped in now let’s be honest your kids blowing their 7K they might be making a year on their summer job but you because they have earned income can throw that 7K into their Roth IRA now let’s say you did that for five years okay we had five years of contributions of 7,000 bucks that’s 35k let’s say that 35k is now
(23:17) $45,000 total because you’ve had some investment Returns the nice thing on a Roth IRA is you can take $35,000 out of a Roth IRA no penalty no tax the contributions you put into a Roth IRA which is unique to any 401k or IRA it’s Unique to Roth IRAs the contribution you put in you can always pull out penalty and taxfree for anything you freaking want we’re not talking about an exception or a hardship or anything like that I’m just saying the 7K you can put in you can pull out so that 35k of contributions I put in
(23:49) for 5 years I can pull that out and I can use that for my kids college education that 10,000 of earnings let’s let that ride for that kid that 10,000 of earnings is now growing for their retirement we’ve given them a head start now this money is growing coming out taxfree okay now that’s level one you’re in maybe second gear hold into the carpool lane you just came onto the on-ramp you’re like okay that’s pretty cool 7K a year and they I can take that back out taxfree for college that’s awesome pretty cool but what do you got
(24:18) what’s under the engine there well is Turbo oh baby we got H we we got some things going on first of all I’m going to say gear number three is or third gear is getting that tax deduction if you can create a write off for you yourself and your business or your rental property to pay the kid to fund the Roth you’ve already got a tax write off again you got a tax deduction to fund their college education which is a backdoor whatever third gear strategy that’s just amazing now fourth gear now we’re getting serious because I can
(24:48) self-direct my Roth IRA that kid’s Roth IRA could be in my next real estate deal the next syndication the next uh note um all sorts of options and now as you’ve heard here on the show or you wouldn’t be here we’re going to be pushing 10 15 or 20% returns if I’m investing in what I know so I just was having fun here with this man I like your little example oh 35k you know I put in five grand 7 Grand 5 years in a row and I made 45 you know I was trying to make it approachable approachable you want to real know the
(25:19) real numbers okay 7 Grand 5 years 15% rate of return 68,000 wow now 35 of that can come out tax tax free penalty free for college you’ve got another $26,000 building for that kid’s future Nest EG Let’s see we do it for 10 years 191,000 now you’ve doubled what you’ve put in your contributions were 70 your total interest Roi is 114 wow I got 191,000 sitting there 10 years later and I can pull out 70 for college yeah and this is at a 15% rate of return let’s throw it at just eight let’s just say it at 8 cuz I the the
(25:59) critics here are like guys you can’t do that come we can do 10 S&P we can even that’s I saying eight that’s the S&P 500 at a minimum you can do 10 124 Grand now that’s the tenure yeah if I did the five 54 Grand so you’re still above the 45 so and so the point is is when we’re talking about growing our money and having our money work for us we need to invest it better that’s why we don’t like the 529 is cuz the money is not working very hard for us it’s working for Wall Street they’re getting their fees out of it it ain’t working hard for
(26:29) us it’s not growing very well look up the rated Returns on the 529s you’re interested in on the other hand the Roth and the coverdell I can have more investment choices I can self-direct that at a minimum I can do an S&P 500 fund and on top of that we can get into fourth or fifth gear here and self-direct it and invest it in deals that I know whether it’s real estate or small business or whatever the thing that you know and so that’s where we get greater returns we have greater possibility but remember the Roth IRA
(26:59) the unique little attribute to it is the seven cam putting in every year is what I get to take out for whatever reason I want and we let the L of the money ride and we’ve set our kit up for success in the future I love it love it now here is the secret strategy you you if you haven’t been blown away with some little unique nuances you maybe didn’t know already the power of this the strategy the secret to all this is doing all three doing them in concert so I like Matt he said this early on he’s like if I can get the two grand in the Coverdale
(27:31) oh okay I’m in cuz you don’t the kid doesn’t have to have earned income for that so um that’s nice u i could gift my kid I or I could just put the money in or I use Grandpa and Grandma I use the back door you might have like an infant you know like I got a two-year-old what you yeah just get a roll but then if I can couple it with the Roth now I’m doing 9,000 and I could do let’s do a 10% return we’ll compromise and I do 10 years and I put in 9,000 now I’m getting a combination of the two and let’s just see what we end up with there in 10
(28:04) years wow we’re at 181,000 10 years 9,000 a year 10% rate of return when I hit it with the 15% that’s when it went nuts quarter of a million 250 so now your kids going to USC you know the private scho yeah but then if you but the 529 has a role you know friends or family Grandpa and Grandma want a gift to the kids great but you know you’re doing all three and you’ve got got a system and when you’ve got multiple children you’re not feeling like you’re killing yourself either you can do a little here a little there and
(28:36) can be exciting and and you know let’s get real so let’s say you’re looking at doing a little real estate deal and you’re like man I just don’t have enough money in my IRA or or my 401k rollover from a job previously I had and I well this is where we’ve been talking about for years doing the special purpose LLC so I can take LLC put in HSA money put in Coverdale money put my kids Roth money put in my old 401K money put in my new Ira money put in my new Roth money oh my gosh now I’m in there doing deals that I dreamed of doing we got to think
(29:08) bigger we got to think of pooling our family wealth mhm yeah and this is where of course the kids Roth Ires are awesome we’re dropping in the cover LS and I always wanted to be because I had these clients that did this right this is how we you know that clients were doing this and I was always man I was always Born Into the wrong family let’s change that for yourself and say I’ll have my kids be the ones born into that family but also let’s teach them let’s not just give them this stuff let’s teach them bring them along in those deals let them
(29:35) understand what they’re doing with this and what this money is being used for because the worst thing you can do is have all this money and do all the work for them and just gift it to them no bring them along help them along in the process not only getting the money set aside but helping understand how it can be invested and grow for their benefit well and this brings us to the family board meeting in this time of year the summertime anytime the fall holidays whatever having a family board meeting helps you justify paying the kids anyway
(30:02) or even Grandpa and Grandma through the backdoor method there and you’re teaching financial literacy and sharing the process with your kids and talking about Investments so over in our sister uh podcast Main Street business we’ve got a several podcasts on the how to hold a family board meeting check that out um and you’re writing off travel to go to the family board me I mean the L it just is such an integrated strategy for small business this is just a huge part of it so yeah take control yeah baby take control that’s what we say and
(30:34) uh just you know we of course have the Roth Accounts at directed Ira we call it a kids Roth It’s a unique application type meant for your kids where the parent is responsible for the account and overseeing it until the kid reaches age 18 then we obvious have the covered L account too and those are the two you can self-direct now again you could do broker dealer account if you just want to do an S&P 500 or whatever funds or Investments you’re interested in and then the 529s check out the different states where you might be in or States
(30:57) you want your kids go to college and um look for those also but just remember your investment options of course are going to be limited to what that specific 529 fund offers love it well thanks everybody for being here and taking the time to tackle a topic that can actually be a trigger for a lot of stress you know as a parent you’re like ah I don’t even know how I’m going to pay for college or if I’m going to try to and what do I do and and we don’t know where to start so hopefully um some of you uh got some answers today that
(31:26) were much needed and I want to commend you for being brave and tackling a topic that can be very very difficult emotionally please share it with others and we appreciate that give it a five star if you could there’s people out there that need to hear this and it will change their lives and change the lives of their kids yeah thanks everybody we’ll see you next week [Music]