Uncategorized

State-sponsored 529 accounts are a tax-free way to pay for a childs college education. Opening an investment account when theyre young and contributing to it regularly and basically forgetting about it until theyre ready to go to college is one way to deal with it.

The money is usually invested in mutual funds, so parents dont have to keep a close eye on how theyre performing.

Because 529 plans have a much shorter time to grow than retirement accounts do, a severe market drop can affect how much money they have for college. For this and other reasons, its a good idea to set up a 529 wisely and keep an eye on it.

Conservative investments are one way to go, especially if all of your college money is in a 529. Most 529s offer age- and risk-based investments as the child grows, moving from stocks to more bonds as they get older, much as a retirement fund can. In addition, some 529 plans offer savings accounts insured by the Federal Deposit Insurance Corporation.

Whatever returns a 529 plan gets, the best way to get the most out of it is to contribute to it regularly, such as through automatic deductions from a family checking account. Contributions arent deductible on federal taxes but many states offer a deduction on a state tax return.

Investment allocations can be changed twice a year, so be sure that the change youre considering is one you want to make.

Another way to save with a 529 plan is to use one of 13 prepaid tuition plans offered by 12 states and one not-for-profit organization. They allow participants to pre-purchase future tuition at a predetermined rate today.

The most widely offered 529 plans are college savings plans that typically use mutual funds to grow contributions that parents make to the plan.

If your child doesnt want to go to college, a 529 plans beneficiary can be changed to another family member to use for college.

If the money isnt used for educational purposes then the earnings, not the contributions, will be subject to income tax plus a 10 percent federal penalty. Some plans may also charge extra fees.

Published with permission from RISMedia.

Studies have shown that looking at certain colors can impact your mood, so if you’re looking to brighten your days, look at the walls.

Orange
This color boosts social connection, so paint a wall in your living room or kitchen a vivid orange and enjoy deeper, longer, joyous conversations.

Yellow
This sunny color is one of the most obvious mood brighteners, and there are many shades of yellow soft enough for an entire room.

Green
This earthy tone is a stress reliever. Roll it onto the wall across from your bed and smile your way into sleep.

Violet
This royal hue fosters creativity and intuition. Add it to your home office for more satisfaction in your work life.

Fuchsia
While this color is a tad bright for most rooms, fuchsia accent walls can still splash around enough of the color to make an impact.

Published with permission from RISMedia.

Not using your credit card enough sounds like an odd reason to have a mortgage application denied, but it’s one of the ways that applying for a home loan can be derailed by factors you may not have thought of.

Credit card debt can help establish a credit history”a good history if you have a record of paying it off on time. Late payments can hurt a mortgage application and a poor credit history can be worse than having no credit history at all. Without a substantial credit history, however, home lenders may be unlikely to approve a mortgage application.

Here are some other things that can lead to a mortgage application rejection:

New Credit Opened Recently
Opening a new credit card or two a month or so before applying for a mortgage can lower your credit score by five points. That shouldn’t hurt your mortgage application if you have good credit, but if you’re on the cusp of qualifying, it could be enough to have your loan application rejected. Wait until after you’ve moved into your new home before applying for more credit.

Unpaid Medical Bill
Not paying a medical bill can lead to your doctor’s office or hospital asking a debt collections agency to try to get the money. The debt collector could notify the credit bureaus that you’re overdue, which could put a red flag on a mortgage application.

At least try to work with the medical provider to set up a payment plan. This will show a mortgage lender that you’re serious about repaying your debt and are working on it, and could be the start to getting your mortgage application approved.

Job Change
Getting a new job is a good thing, but changing jobs just before applying for a mortgage can show banks that you don’t have a consistent income history. Lenders want to see at least two solid and consistent years of income history. Changing jobs on your own is normally a good thing but, in this case, you may want to wait until after your home loan is approved and you’ve closed on a house.

The lender may give you some leeway, however, if you were laid off and didn’t have any control over your employment.

Lying
Exaggerating your income on a mortgage application may seem like a minor offense; however, lying about your income or anything else”such as trying to hide debt or a down payment source”is mortgage fraud. That’s reason enough for automatic denial.

Published with permission from RISMedia.

Asphalt is a popular choice for paving driveways. It’s an environmentally-friendly material that can be recycled and is unlikely to cause damage to vehicles. Asphalt also lasts for decades and can enhance your home’s curb appeal, but eventually, it may show signs of wear or damage. If you notice any of these problems, they should not be ignored.

Visible Signs of Damage
If your driveway is cracked in one or more places, you should have a professional inspect it. Even if the cracks don’t seem like a big deal, they can expand. A cracked driveway can cause damage to vehicles and increase the risk of a person falling and getting injured, particularly at night or when guests visit.

Wear and tear from vehicles driving over asphalt can cause potholes as the ground becomes weak and cracks. If your driveway has several potholes, the surface may not be strong enough to support the weight of vehicles. Rain and water from melted snow can settle in the holes and cause them to expand, which can lead to serious injuries or damage to vehicles. If your driveway has potholes, it most likely needs to be repaved soon.

If your driveway’s surface is uneven and covered with bumps, that means it has structural damage below the surface. Contact a professional to have the driveway inspected.

Sometimes an old driveway will begin to crumble. If the pavement is eroding, that is a clear sign that the driveway needs to be repaved before the problem gets worse.

Since asphalt is porous, it should be able to filter water and allow it to enter the ground below. If water is pooling or running off the driveway in a stream, that needs to be addressed as soon as possible. If it isn’t, you could wind up with a serious drainage problem that affects your entire property.

Have Your Driveway Inspected
The last thing you want is for a family member or visitor to fall and get injured on your driveway or to suffer damage to a vehicle. If you notice cracks, potholes, bumps, erosion or drainage issues, it’s most likely time to repave your driveway. That can be a significant expense, but it can prevent many more serious and expensive problems later.

Even if there’s no visible damage to your driveway, there could be some that is hidden. The foundation may have broken down over the years, and you will see damage on the surface sooner or later. If your driveway was paved 20 or more years ago, or if you’re unsure of its age, you should have it inspected. A professional can let you know if it needs to be repaved. If it’s currently in satisfactory condition, it can still be helpful to know approximately how many years of use your driveway has left so that you don’t wind up with a costly and unexpected project.

Published with permission from RISMedia.

Credit cards can be used to buy almost anything, but using them for small purchases can seem like a waste of time when debit cards or cash are more convenient. However, there are both advantages and disadvantages to using a credit card for small purchases.

The Negatives

The ease of use of a credit card can lead to spending without giving it much thought, and can encourage you to make unnecessary purchases or spend more than you normally would.

Numerous studies have shown that credit cards cause people to spend more. McDonalds reports that it sells an average of $7 to someone using a credit card, compared to $4.50 to someone paying in cash.

States have been found to raise highway tolls more often when drivers pay through electronic toll collection instead of cash. An electronic debit isnt seen as real money until the credit card statement arrives.

Making a lot of small purchases on a credit card can lead to a long billing statement, requiring consumers to carefully go over them for fraudulent charges or mistakes. Criminals take advantage of this by making several small, unauthorized charges instead of large ones that are easier to spot.

Not paying your credit card bill in full each month is another downside to putting a lot of small purchases on a card. If youre paying interest on a credit card balance, youre essentially paying more for everything you bought with the card. This goes for items big and small.

The Positives

The upside to making small purchases with a credit card is that doing it regularly can eliminate the need to go to the bank or carry large sums of money. Small transactions can also add up in credit card rewards”though theyre only worthwhile if you pay off the balance after each statement cycle.

And in a small way, multiple small purchases on a credit card can show you how much youre spending on small things that you may be able to do without and save some money on. Those coffees, candies and other small expenses add up, and a credit card bill of several pages is an easy way to see them together.

Published with permission from RISMedia.