Key Takeaways: Start with the after-tax income you actually need. A tax-efficient plan works backward from the spending your life requires, then figures out how much of that your portfolio
Before the existence of 529 plans, there was the UTMA, Uniform Transfers to Minors Act. Parents and grandparents could create UTMA accounts in their child’s name, put money in them, and not only save for college (or something else) but also avoid paying the higher tax percentages of the parent. A perfect tax shelter…your children! In the 80’s, the government got wise and passed “kiddie tax” laws to remove this shelter loophole. As a result, UTMA accounts have tax implications you need to consider when choosing this savings product.
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Capstone Wealth Partners is a fee-only independent Registered Investment Advisor in Columbus, Ohio. We are financial planners for college-bound families.
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