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February 2019

Hitting Pause

My daughter just forwarded me an email—appending exclamation points and smiley faces—from one of the schools she applied to, saying they’ll be sending out acceptances between March 1 and March 15. She’s nervous about acceptances but excited for her next steps so she was thrilled to learn she’ll get at least one answer really soon. For me, a moment of…

Why 529s Always Make Sense

It’s easy to explain to parents of younger children why 529s make sense: Contribute now and your account grows tax-free for 18 years until college. If you live in one of the more than 30 states that offers a tax deduction, that’s an even bigger incentive. Here in Oregon, for example, we get a tax deduction for the first $4,865…

College Endowment Returns

If you’re still smarting from your year-end 401k statement, you might not want to read this. The 2018 NACUBO-TIAA Study of Endowments showed that even institutional investors were not immune to market performance, with endowment returns down almost 1/3 from 2017 to 2018. Endowments still managed an average return of 8.2%, though the 10-year average annual return came in at…

Budgeting for Books and Supplies

When comparing the two schools my son is considering, we noticed an interesting data point: one school estimated books and supplies to cost $800 annually; the other $1,146. One of the schools my daughter applied to estimates $1,800. While I can certainly understand that different meal plans or living options might be more or less expensive at different schools, it’s…

What’s in a 1098-t

(and what isn’t) A 1098-t is a tax form that serves several purposes. It reports qualified tuition and fee payments made to your college, as well as scholarships received to offset those costs. But qualified expenses is a big tent-type of phrase that means different things in different situations. All by way of saying, your 1098-t is not an exhaustive…