The Basics of Charitable Giving + College Savings Plans, Ep #115

<p>Do you have a plan for charitable giving in retirement? What about saving for a grandchild’s college education? Retirement planning goes far deeper than covering your basic bills in retirement—it’s about <em>all</em> of the goals you have. In this episode of the Retirement Made Easy podcast, I’ll cover two things I’m often asked about: charitable giving and college savings plans. Check it out!</p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[3:21] Check out the resources at RetirementMadeEasyPodcast.com!</li> <li>[5:28] The basics of college savings plans (529 plans)</li> <li>[8:42] The alternative options to a 529 plan</li> <li>[11:16] How to determine your goals for retirement</li> <li>[12:32] The basics of charitable giving in retirement</li> <li>[16:22] Learn about donor-advised funds</li> <li>[18:32] How to properly name your beneficiaries</li> </ul> <h2>The basics of college savings plans (529 plans)</h2> <p>Are you familiar with 529 plans? I have clients with young grandkids who have set a goal to help pay for their college education. 529 plans are the most popular way to save money. Depending on the state you live in, there may even be a state income tax deduction on your contributions. In Missouri, the maximum deduction is up to $16,000 for a couple married filing jointly. Someone filing singly can contribute up to $8,000 in a 529 plan per year. </p> <p>The real beauty of a 529 plan is that the money grows tax-free as long as it’s used for qualified education expenses. Plus, you get to determine how and when the money is distributed for education expenses (K-12, trade school, or bachelor’s program). Qualified expenses can include books, tuition, and even laptops.</p> <p>What happens if the money isn’t used for college? What are the alternatives to a 529 plan? Listen to hear the different options. </p> <h2>Charitable giving in retirement</h2> <p>Once you turn 72, you have to take a required minimum distribution (RMD) from your retirement savings. As you get older, y