With the cost of a college education increasing, the key is to start investing now. The good news is you have options.

ONE — A 529 Savings Plan to jump start their state college life. For a private institution it is called a Private College 529.

These plans allow one to prepay tuition at today’s price -or- simply choose to put back savings and allow it grow. They are the most tax-beneficial and efficient ways as it provides tax-deffered growth and tax-free withdrawals for education expenses; allowing your investments to grow without paying taxes on them. Further, there are no IRS-imposed annual contribution limits.

It can also be converted into a Roth IRA retirement account, so it can benefit any path your child chooses.

TWO — A Custodial Roth IRA. This gives you flexibility in options. You can withdraw contributions penalty and tax free any time, and let you withdraw your earnings early without penalty for good reasons — education expenses! All the same expenses that a 529 Savings Plan or 529 Private College Plan offers (but one will owe taxes).

The key point is that this option provides a ‘retirement fund’ for you, your spouse, your child or grandchild along side tax-efficient withdrawal plans for education.

THREE — A UGMA or UTMA Account. If you are looking for more flexibility or higher contribution limits, then a custodial Uniform Gift to Minors Act or Uniform Transfers to Minors Act account minght work better.

One can open this account from a bank or trust company. When the child reaches the ‘age of maturity’ according to your state -often 18 or 21- the assets will transfer to them, and they can spend the money however they want. The difference is that this account will fully belong to the child, not you the parent. The withdrawals will be subject to ‘kiddie tax rates’ which gives them a break. But is also means it will count against their Financial Aid because of the child’s asset factors.

Whether you consider it as an emergency fund, a rainy day account, a financial cushion, or an “uncertainty fund,” you need one.

But exactly how much should you save into an emergency fund, and what do you do with that money? Here’s what you need to know.

Our established recommendation for an amount to place in this fund would be three to six months of one’s take-home pay. One lasting effect of the pandemic was to show us how devastating it can be to suddenly lose income and not have savings. If you are uncertain of employment or are self-employed, we recommend nine months of your take-home pay for the fund. It is a type of range, though, which is why deciding how much is right for you depends on two things: How much uncertainty you might have to face and your style of living.

>Short-term CDs (three months)

>Mutual funds

>High Yield Savings (FDIC Insured)

>Money Market Account (FDIC Insured)

We firmly advise not to place one’s ER Fund in a long-term certificate of deposit (CD) or any other type of account that doesn’t let you make withdrawals whenever you want. We also suggest that one choose something separate from your everyday bank account. This can help one resist the urge to tap into the fund for non-emergencies.

If you own something of value that you would pass on to someone else upon your death, you have an estate. These are five recommendations to protect your estate from risks that can negatively impact the estate and legacy you intend to leave behind.

ONE — Protect your assets from Long-term care costs. Advance planning to protect assets from spend down on long-term care costs often includes creating and funding an irrevocable trust. Depending on age, health and financial circumstances, purchasing a long-term care insurance policy which provides financial assistance for services like home care, assisted living, or nursing home care is another excellent way to protect a legacy from loss to long-term care costs.

TWO — Protect the inheritance you leave your beneficiaries. An inheritance that passes outright to beneficiaries is subject to the easy reach of their creditors such as a divorcing spouse, failed business, lawsuit, etc. Structuring your estate plan to leave the inheritance to your beneficiaries in trust will protect it from the easy reach of those creditors.

THREE — Poretect from avoidable costs and taxes. One key aim of estate planning is to minimize expenses and taxes that can diminish the value of your estate. Estate taxes can significantly reduce the assets you leave behind. Strategies like creating trusts, gifting assets during your lifetime, and making use of tax exemptions can help reduce the impact of estate taxes.

FOUR — Protect your unique assets. If you possess unique assets that hold sentimental value and can be a significant part of your legacy, the last thing most people want is to have their heirs fighting over their possessions following their deaths.

To protect and preserve these unique assets, your estate plan should clearly outline how they should be managed or distributed. You might consider creating a family trust to oversee or specifying how your collection should be appraised and distributed among your heirs.

FIVE — Protect your privacy. Maintaining privacy is a fundamental aspect of estate planning. One critical tool for privacy protection is the revocable living trust. Assets titled in a trust will avoid probate, a public court process that exposes your estate details to the public record. This means your assets can be distributed privately, without the need for public disclosure.

Additionally, working with professionals who understand the importance of confidentiality ensures that your affairs remain private during the estate settlement process. Protecting your privacy not only shields your financial matters from unnecessary public scrutiny but also preserves your family’s confidentiality during a potentially challenging time.