Gifting for Education Savings
In the context of education planning, gifting is usually implemented as a strategy when parents want to shift income to their child and reduce taxes.
In the context of education planning, gifting is usually implemented as a strategy when parents want to shift income to their child and reduce taxes.
If you have savings and/or investments on which to draw, you might consider using these funds to pay your child's college expenses as they come due.
As a general rule, a tax credit is a dollar-for-dollar reduction against taxes owed, and it is therefore more valuable than a tax deduction of the same dollar amount.
If you're the beneficiary of a large inheritance, you may find yourself suddenly wealthy. Even if you expected the inheritance, you may be surprised by the size of the bequest or the diverse assets you've inherited. You'll need to evaluate your new financial position, learn to manage your sizable assets, and consider the tax consequences of your inheritance, among other issues.
Owning a home outright is a dream that many Americans share. Having a mortgage can be a huge burden, and paying it off may be the first item on your financial to-do list. But competing with the desire to own your home free and clear is your need to invest for retirement, your child's college education, or some other goal.
In times of crisis, you don't want to be shaking pennies out of a piggy bank. Having a financial safety net in place can ensure that you're protected when a financial emergency arises.
