With another new year just around the corner, you may be thinking about financial planning as a part of your New Year’s resolutions. For those of you with a newborns or young children in the family, you may be thinking about opening a college savings plan. A 529 account can be a great way for parents and grandparents to start a college savings plan. Here’s some commonly asked questions about opening a 529 account.

Who can use a 529 savings plan?

529 accounts can be used to start college saving for any student or future student in your family, including yourself.

When should I start my college savings plan?

Obviously, the best thing you can do is to start saving right away. However, it is never too late to start a 529 account for you or a loved one planning on attending college or a higher education institution.

Is a 529 account the only college saving plan available?

No, you don’t have to open a 529 account to start saving for college. There are several other college saving options available. Each has it’s advantages and disadvantages and it may be wise to consult with a financial or tax adviser when finding a saving plan that fits your needs.

College savings plan or prepaid tuition plan?

Along with the traditional, 529 college savings plan, some state and private colleges offer prepaid tuition plan options. With prepaid tuition plans, you can purchase credits towards college and university tuitions and fees at current prices. Keep in mind that prepaid tuition plans are typically subject to requirements such as mandatory residency requirements and you can only apply your prepaid credits to approved colleges and/or universities. While a traditional college savings plan can be more flexible in terms of requirements and restrictions, it’s important to remember that, as with any investment, it is subject to loss-risks.

Investor Resources

If you’d like more details on 529 accounts and other college savings plans, check out the College Savings Plan Network for information and educational resources.

• mortgage brokers
• investment bankers
• credit bureaus
• debt collectors

Now these entities should be making sure you receive fair, equitable options for your finances and investments, instead they are taking advantage of the elderly and carrying out senior financial scams for their own benefit. Since 2011, the Consumer Financial Protection Bureau (CFPB) has received over 70,000 complaints of or relating to senior financial scams. The complaints outline predatory practices directed at elderly citizens to disenfranchise and or intimidate.

Don’t Fall Victim to Senior Financial Scams

The elderly are targeted because scammers and fraudsters see them as easy targets. Advanced age or the presence of medical disabilities make many seniors susceptible prey. You can prevent senior financial scams. If you are over the age of 60 and you still manage your financial portfolio, take steps to educate yourself against these predatory practices. If you manage the finances for a loved one, who can no longer look after their own, it becomes especially important to protect those assets. As a designated trustee, you are the only one standing between your loved one’s financial security and the threat of fraud.

Investor Resources

To read the full report on senior financial scams, click here. Check out our past blog on tips for preventing elder financial abuse.

On Thursday, it was announced that the Securities and Exchange Commission (SEC), the nation’s top finance and securities regulator, had experienced a critical cyber security breach. The breach, which occurred in 2016, allowed hackers access to the SEC’s EDGAR system, a database which houses corporate filings and announcements for a multitude of Wall Street firms. The SEC hack has shaken investors and lawmakers as it poses serious questions regarding the SEC’s security measures and protocol. It is also possible that hackers may have profited on the insider info by trading on it. According to a Reuters report, the database contained sensitive, “market-moving information”. The announcement came as a shock to everyone and with concerns arising over the SEC’s ability to maintain and protect its security systems, you may be wondering what this means for your investments. For it’s part the SEC has taken steps to assure that the security breach has been addressed, however the SEC hack comes at a period of heightened concern over cyber security. This breach follows close on the heels of the massive Equifax scandal, in which hackers gained access to millions of customer records.

Security Protocol in Question

The SEC hack has raised questions in Washington among policymakers concerning what steps are being taken by regulators to prevent critical breaches like this one from occurring. SEC Chairman Jay Clayton will be on Capitol Hill on Tuesday, appearing before the Senate Banking Committee. The chairman is expected to come under fire from policymakers, who will demand a clear account of the exact nature and extent of the SEC hack. Ahead of this hearing, other financial and securities regulators have come forward with their cyber security measures.

Investor Resources

If you’d like to find out more about the SEC hack, read the full Reuters article here. For more regulatory news and investing tips, check out our blog.

Watch Out for Insider Trading Schemes

If you’re just getting into investing, you’re going to get a lot of offers for instant returns or low to zero risk investment opportunities. You will need to learn early on that there is no such thing as a “zero risk, get rich quick” investment. If you’re approached with insider trading information, it is important that you not act on it and report it. Despite the temptation, it will only spell trouble. Chances are, any information you receive is already being tracked by regulators.

Investor Resources

If you receive an insider trading tips, you can report them to the SEC. Click here to file a report or complaint. For more financial news and tips for smart investing, check out our blog page!

Is 2008 far enough in our rear-view that we’ve already forgotten the same mistakes that brought the financial industry-and U.S. economy-to the brink of collapse? Evidently, it is for banks and policymakers. You have probably been hearing a lot of talk about impending “reviews” of current financial regulation measures; the very regulations put in place immediately following the aftermath of the 2008 collapse; the very measures that are meant to ensure that kind of thing doesn’t happen anymore. However, these calls for review signal a clear intention for some of a desire for wide-scale financial deregulation.

The Push for Financial Deregulation

Financial institutions have claimed that regulation measures have been retaliatory and have largely resulted in stifling growth and ability to offer competitive services and prices. With the introduction of the Trump Administration, financial stocks soared on optimism of a businessman in the White House. The president and other policymakers have repeatedly voice dissatisfaction with current regulatory measures. Notably, the Dodd-Frank law, which provides much of the overarching regulation for banking and finance, has been seen as headed for the chopping block. Reuters reports that in June, House Republicans voted to replace Dodd-Frank.

In a World Without Financial Regulation

The risks of widespread financial deregulation are great. The fallout of 2007-2009 were universal, and effectively ended the popular “too big to fail” concept. Entire companies were brought down, not to mention the homes and savings of thousands of people and families. You probably know someone who experienced financial devastation. Dodd-Frank and other regulatory measures were put in place to ensure that devastation of the magnitude never occur again. While a review of some measures may be warranted, massive financial deregulation is not. In fact, banking experts are warning that a move like that could have dire consequences. Vice Federal Reserve Chair, Stanley Fischer, recently stated that the decision to roll back key elements of Dodd-Frank were extremely short-sighted. He warned that a reversal could be taking us in a very dangerous direction. Regardless of political preference, nobody wants a return to the dark days of 2008. Any “reviews” of existing regulations should be met with apprehension and should be given full deliberation.

Resources

You can read more about the Fed’s concern over deregulation here. Curious about what potential rollbacks could mean for your retirement savings or investments? Give us a call.