There's Better Way To Pay For College? (S3E11)

Tuesday, September 26th

There's a BETTER way to pay for College. You may have heard us harp on this before but this week we have a special guest Wayne Weber of 


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Maybe you have a baby and you're trying to save for college meet your recent graduate facing a lifetime debt sentence I'm Sherry lynch and I'm Chris Carroll there's a brand new way to pay for college. And here's a hint. It's something I've told you about before and I loved. Nobody else talks about it. That's next on her money to podcast. Her money is sponsored by Carol financial. Hi this is emling net some financial advisor with Carol financing. Retirement may seem like a long way down the red but Cassini start the better off you'll be in the long run but you're starting a family buying your first hand or simply want some help figuring out where to start join us for our new simply saving series this fall at a Mecklenburg prairie on Tuesday September 24 at 5:38 o'clock. It's retirement. Simple. Welcome to a brand new episode of her money the podcast from Syrian news Chris Carroll and if you are regular Hermione listener you know that this podcast believes very strongly in the power of the 529. Plan if you're new listener Crystal River to a 529 plan as it. It's basically at college savings plan that's issued by states and and every single union basically has formed but. I would say more than just believing in five point nine I'm big believer in education okay yeah and and I think education is so important and so difficult to pay for. And and there's this great wave to help save forest it's a five Tony non plan that's really under used and and a pretty good. So the weight that it works is he put your money in your 529 plan the magic of time plus compounding interest your right as we learn of her morning podcast. When it comes time to take it out. As long as you use it on qualified educational expenses you don't pay taxes on the earnings were you don't pay taxes on my Guerrero and and its. It's a big deal it's a great purge are so why don't more people hear about this when they are putting their financial plan together tell me already the dirty secret got so I actually. Told you this before and ending genocide Jules Massa but but I think the reason it's so under utilized that the number I heard recently was that. 13%. Of of people who can pay for college have a 539 important. And that's the reason cylinder utilized in general that no one in the financial industry makes money off office. And sue. There's and you're never gonna see big commercial for like who call me and I hope with your five point nine plan because. Fish is not a lot there's no money to do is no money to be made suit so if I turn on CNBC in a couple hours I'm gonna see so many commercials for different financial products. But the one thing all of those commercials haven't. Common is somebody's making good money when you cured by dire financial products in the case a five point nines if you're talking about somebody saving a few hundred dollars a month every month for twenty years. Which is greedy if you can do what you can do there the financial professional that helps you do that's making virtually nothing. So it's not a product because let's face it you know this is capitalism you're not gonna push a product that isn't gonna pay your bills sit right yeah and that doesn't mean that we won't use them I mean I think that the vast majority of the people that I work with. If you know if if they have a college group to pay for hitter agreeing to go to college. I'll help him settle for 5:29 but I am not out there. Pounding the sidewalk talking to people on the street about it right so I. He's you know so you can definitely you always talk to your client success what I love about you we're like sorry now you don't knock him you know this you need to do your slow shirt is it's a great idea of it but there's a difference between good financial professionals talking to their clients about it. And people out there talking at the water cooler about it right right and end. When he gets on commercials on TV and in water cooler talk that's when it becomes widespread. While we are not the only people obviously that come believing in the power of the 529 plan to pay for college. Under a company called gift of college dot com. There has done something so interesting and innovative. With 529 plans I think they're gonna bringing the bigger message at 529 plans. Not just to a wider public but they're literally gonna bring it to places like Toys 'R' Us and we're gonna talk to the CEO of gift of college stock com. His name is Dwayne Webber Wayne welcome to her money the podcast. Stay here. And my partner Chris Carroll is a certified financial advisor and he has his own financial companies and he is a huge supporter of 529 plans but. We talked before on this podcast about the dirty truth about 529 plans. He can't make really any money selling them which is why a lot of people are unaware of what a great vehicle they are. Tell us what you have decided to do in the 529 plan zones. Well we just really wanted to make aware that it's okay yeah a lot of people because. What you just mentioned it I'm. You know some financial advisors and firms you know you don't lead the product from some legal home at all. And a lot of people don't know that they're in Iraq old version applied to nine plan. And so can just go to their state web site and start to what we did Liz. Try to create awareness around that we created a gift registry gets that college dot com. Which is a gift registry for your thought to not understood my account but what's friends and family contribute. But then we out of their reach she'll get carded. Aren't hot bat. So you can try and get the politics card Toys 'R' Us and babies. You can find them digitally and actually touching on what it's like you can find them and he talent he did you eat and AARP. I dot com plays but we really just wanted to bring awareness justify cunard and you know getting somebody started it is this is the first that because. No there's an awareness Colin and it really a good product. Her car in America what plane that's exactly you're saying free before we had you on their great products but the thing is nobody's talking about a local water cooler it's not something that. Sort everybody on the street knows about. So even if there are plenty of good financial advisors out there of that. Will lead with them that will advisor clients on that and a lot of cases I held my clients use the Drexel won just because it's it's easy anyway. Umpire but but until people know about it it's a really good product I love the fact that you leading with awareness I think that's great. Yet you know 34 days did it. Anything additional tax breaks aren't top of the of the tax advantages to using the fight to night at the federal level so one at the federal level obviously every dollar you saved. That interest you earn Armitage is actually EPA's history taught by the scientists. But then again thirty foresee also give you actually income tax credit or deduction or some sort our our credit as well. So if you live in one of those stating. You're kind of crazy look yeah clearly losing your C parent Brooke but probably could. Well and a few states actually lets you take the deduction even if you don't use your own State's plan. And tracker Stabenow. So wait let me ask you this let's take almost hit my daughter's grandmother for example it's a heart of gold no technological. Know how whatsoever like I she still has a flip phone she looks like a drug dealer. So. I say to her she says she says I would like to contribute to the girl's college and I say okay we'll go to Toys 'R' Us. And get a gift of college gift card so what happens after she picks it up and walks out of the story this take us through the process. Shirt she's getting back hard Sheila loved one probably you work granddaughter. And then you simply come to get the college dot com. Who registered for yourself or your child. And then blink your college savings plan and we have a link. All of them there's an idea that you direct and advisor sold viking I and where you right now and we wake every one of them. What do once you have that type united way and he's simply linking it to profile widget. Similar to let you know over how poorly played the one darted right on your profile index card but you've. Read it simply does that count order you can click about kids. Injure those numbers on the back of the gift card. And he has our cricket college. We don't have your prospects and get it right here actually knocked. It's amazing so for the gift giver all of the work and stir them once they walk out of the store herb but I have to bought it on line once they hand the gift card over. They're contribution is done no paperwork no phone calls nothing. I started the company as an on call one agent and I AT and yet not yet now it. I don't know what happens that I males can get a truckers get account numbers I just wanted to get to get. And I doubt that's exactly what it is that particular. So what are you what are you doing to get the word I mean other than talks hockey into the Herman podcast what are you doing Wayne. To get the word out there are so that people realize this is not see because you knew your bright kids to discern means we were talking about it before we started today. Where is they're too old for Legos. And they are too young for sky. I lost that she's doing it you'll ever wagons thing I'm a my ticket it's true I argued that. Here yeah. Like you're fifteen or sixteen year old niece and you don't want to give her more closing crappy wanna give her meaningful gift so. Were they doing to help people discover that this is out there. Well you know our regional partner. Played there indeed are having it on their shelves tomorrow. As you know done the trick where we're really starting to get the word out. Having a retail partners and a partner like Twitter. Where you're near her a twenty year their first child. And you know you're probably thinking college represented. I'm so that's why you're within our partnership. Then we're probably talking to shows like yours. You know we're we're out here you know doing our our day. Really organic really just try to get the message out. But I think that more likely that you try and get to college. At you know re killing by air and I I think that's how in our overall awareness and I I can't tell you aware that next Monday. Well in October we are coming into another major retailer complication and a couple albums or some sort you know we're excited about it. So tell us a little bit about what gift of colleges doing four on students that have already graduated and got their degree and their debt sentence. Which is for people decades are a student. Yeah and does that prey and you know we're really talking about that feeling saying. Because you know that's the goal raise his oh boy who but the reality is we have one point four trillion dollars in debt. And we see it so. We want redemption rate target target. Which are beating your card industry would do which were excited about we don't want to get our story and it's war but they're they're valuable. I'm working in 25%. Plus. Of our gift cards redeemed are being written in the studio and it. So just like he can come to get ecology that your profile or your child seat for car in the fight GRE. You could have a different color profile for yourself. Seeding in a few years federal you don't. Where you screaming do you explain that to me way back that up you you can absolutely you've got your federal student loan debt. You can use gift of college cards to help pay that down. You can so are getting registry. If he gets credit street certified cunard. And every student loan provider as well the lie so loan terms soaked by the great place to start in May go hiking or are they aren't. I don't you know we got into the millions of dollars now get it interest you to know what else. That's amazing I had no idea that that was even a feigned a lousy number possible scurry. You know I'm starting to see the future of where wedding registries will be you know dishes lamps barbecue tools student student actually I think sooner or might be the top of the list sorry. The young couple that's amazing so what is what is accused of college what is your vision for where you think 529 plants can go. In the future because we think cost some college. There used to be a ceiling on that escalation writer it's going to be priced out of everyone's range. There because clearly he have to work permit our car mat side. But ultimately eat. You have to see this is Mexican even Netflix today. You know the government decided to quote unquote make college street which we hear we hear about in the news. Yeah. That language that would put four would cover our ballot. 50% of college. So we're gonna get another 40% either that or helping. A bit problematic benefit our what are you you're not doing awareness. It's never easy street cases in the beginning of the village so pretty good president family but that we're dealing upload right now that's not enough. You have got your employers get the ball. I don't know what do you think you were here it was columnist. It did so it's harder to reporters how Newton police are battered city on. Inflated apple CE let me circuit Archie I plan rewards and recognition and now working on a platform for payroll deduction. Injured I cannot manage its players don't get it all when you aren't quite. I'm Colin proceedings and helping to you know is that it would feel like employer didn't get involved in retirement for a one day. That's exactly right in and in big orders being involved has totally changed our market right. Totally could find a way to get employers involved in the college saving process for their employees. Children order pay back their student loans eat either way he really. I think that can be huge change in awareness. And and what an awesome benefits at a hotel benefits package so check me on this because they're both financial on professionals. Since the 529 plan and is not a profit generating machine. Why would employers resist. The potential of making that available to employees as a payroll deduction for example. Thought well the you know the payroll deduction aspect of it's probably. It's. No no offense went as probably easier to get that through California there probably will be in the rest of the country. Hmmm it's just because employers are much more. Open minded with how they think about benefits that are I think yeah I know now how big a big part of the payroll deduction aspect is. See employers getting a tax rebate themselves. For printing money into your 41 K. Right way so that's pretax money to them it comes off their taxes and and so so it's a win when exactly so so part of the issue with the 529 is while. While the employee he would definitely see it as a benefit them I really appreciated once they understood that. It's probably not something that the company's going to get a ride off four or. Well which makes a little more of an uphill battle. We'll definitely in the broadcast industry where they give this indoor plumbing and then pat themselves on the back and I'm Hugo except for one kind of struggle with a but I think you're right a more progressive employer in a more progressive environment I could see that's for sure. Some hand in good shape I can add. There is current legislation. Aren't Capitol Hill. Supporting me. Unmatched. In you know attack deductions employer smashing. Into try to keep on which it's gone through a couple rounds. One of these around gonna have to be win that hackers that faster stat. Two walked toward the signal went. Somewhere that's sounds. So utopian and also I'm still Dwayne with sick bitterness because my kids will will be already in school when that Mexican they have tugs. So all there are not gifts to college to help with their student loans instead of getting the advantage of fraud to planned. All right. So let's it is gift of college dot com the cards are available at Toys 'R' Us and Babies 'R' Us and starting soon another major retailer near you. Wayne thank you so much for chatting. Yeah huge great having. Having an honest with you. Take care I went about a cup. Let's talk about giving money curse because they come thirst certain taboos. About eBay and asking for money like for example for the longest time. You wouldn't ask for me you wouldn't ask your friends for money to help pay for your way dean or your honeymoon. That's that seems to me like a fairly recent phenomenon the expectation wise would tradition as is at the bride's parents. Pain after the wedding the group's shares rehearsal dinner. Right in the weddings started caution as much as college so now. I you'll have to figure it differently. You know I I've never I've never really been part of the taboo of giving people money for a long time. You you know my wife would always say that I was just too lazy to go buy gift of I was always like who yelled at this way they can just buy whatever they didn't get from everybody else ray yeah a benefit for Cuban money but on. You know I think I think Dwyane talked about this idea giving gift cards secures the issue I have and I love I love this product I love this concept. What I hate. It didn't disarm and no I'm not your personal sap ensues after Christmas I have like 67. Different group of cars to go to like different places are different things and yeah I'll. That I put him in the draw or there's gonna like her dad so yeah forget all dollar a guy I've tried to train my family to just give me Amazon gift card race. But but don't win this thing is is interesting because you know this this this gift or college your and you're giving something that they can immediately go and just put on. You know their registry and the mayor Don and it's so easy that's the part that appeal or meanwhile like Amazon gift cards 'cause it's the same thing is that we are in immediately go to the website in just types of thing and and the gift cards except to donuts on there and I'll have to think commodity. And then you can you can stack it in there and then as you feel like buying something on Amazon it debit softer gift cards out or did the thing about this that I love is that. When Graham says well I'd like to contribute to scooter Toys 'R' Us. And other car in an envelope you know we got it from there that's going to be big genius thing for Graham cards so there's a wedding registry called Zola dot com ZOLA and I got weddings on the brain right now because some my brother signed just got married we we all went through this giant wedding and it was. It was like the greatest backyard party he with food trucks and music and games in the two people you love got married it was all so very great. Proved he can have the best time ever not spent a fortune. And they did not want to spend a ton of money on a wedding to say just bought a house together and instead they wanted to put Harvard scorers in their house are okay. So this wedding registry called solar ZOLA dot com. It's sex are not a comprehensive wedding registry where you know you did usual things one glasses and Tiki torches and all. But there's a couple of mechanisms on their where you can give mine he said the couple. Without feeling kinda like. You know make you slipped in a hundred bucks in the brides pocket like you're crazy weather at Paris accent right so you could buy like a board of the hardwood floors like some of the idea kind of yeah yeah I had to sort of by two boards have somebody else about the next usually. And what I liked about the cash staying on as a love. The credit card transaction fee whatever that is. It comes out of the gift not from the giver. So you know when you go to the drugstore you buy somebody a visa gift card it's gonna buy you Neeson fifty dollar visa gift card. But the visa gift card itself cost five dollars and 95 cents if she really paying 5595. In the case of solo that transaction fee comes out of the gift so you get to your budget is a hundred bucks you spend a hundred bucks. Free and clear and then the recipient pays the tuna after three have percent I thought that was really cool. Frank is a lets you actually control because most of us who we think about giving for an event like that we think. I can give my hundred dollar charge you do yeah sent me five dollars or your or something like that and then if we're if we're always. Paying them a little lecture every time. It kinda adds up when you feel he's sort of feel angry irritated at and Beazer Walgreens or every about the gift card when I was on teenager. My father had a business associate now you'll know my father is a meth cooks it when I see business associate of the trigger air quotes around that right. And this guy's daughter got married and you'll think I'm making this up okay first of all her wedding dress she looked like little Bo peep. Met those crusade dolls say polls tell you ladies kept on her extra toilet paper holder. So and it was it there it was a big church wedding. And the reception was held at the Teamsters hall. And the bride and groom have their first dance under and he did mormons or you'll torture of Jimmy Hoffa link on my show that she faked a shot. And the bride had this 18 satin draw streamed back. Nice when you would dance with surprise to slip money in the back and put money in the back I think. We like the kind that folds not the kind that change couples in Miami and at the time I was watching and that my five. There's something so late tacky and groups stepped up about this because some watching guy east lake who were old enough to be her dad. Whisking her around the dance floor to Tony Bennett and stuffing cash into her bag click. The difference between that and the pain a pony seems you know. You say it's fair to go further adds okay. Wouldn't be better if we could've been done that all all through web sites and that you have to see it. Yes and and people would joke about how heavy the bride's bag was getting his shoot me or does that seem like. Actually regulate what we're doing should and should they call the web site something like the bride so I dark I don't I really don't because when I first heard Zola dot com I don't know I was ecstatic what does that mission later whenever. Com but there's something about. Certainly cash money and certain occasions feel uncomfortable for. For people. I think Cashman he feels uncomfortable for a while more more now because who has it yet. Yeah I'm like the only person I know that carries in the cash and more why full very occasionally like. Come. You know she shake me down for some cash money discuss issues and have me but that's. Even even the stuff its school accuse you your kids gone my. My daughter has a PE class were they when apple links feel the burn. Still hope she gets to pay four dollars to go bowling there's an online pay portal up where he just hit in my just in their software buyers out. What we're talking about giving money to come talk to me about link with the new rules are how much money are you allowed to give somebody before you got her guts to report that sure. So the numbers this year and goes off a little bit every year's 141000. Dollars so I can give any well I want 141000 dollars. I can walk around I can walk in the radio station and I could just start handing little bundles of 141000 dollars to ever own army brains. Has not reported I don't have to tell anybody I was doing and I like Italy and I must say and do that. Saying I could OK now if I'm married to ray and I can do tore me 8000 because I'm giving money for meat and money from our. 28000. You can give you can give somebody 20000 dollars on higher now to our American walking and thank you just hand. You know Billy who's who helps a solid the recording he was like you just you know when you stack of about Tony thousand dollars right there. And that's not reported it's not taxable it's not anything to either one of those it's just free money. Frank can do the same community anybody OK so I can't I knew a lot of weight if I'm married tore me grip. So before we run out of time answer me this site I don't have these actual relatives but I hear that maybe it's urban legend. That there are some people who have to start divvying. Their family members money before they die if I. Okay half twos out of a strong word but if you're very wealthy as you get older what she realizes that you're going to be taxed on that wealth. Now these numbers used to be a lot smaller another really big so it's almost eleven million dollars if you're married. So if you have more than eleven million dollars is a married couple. You kind of have to start spending your giving away because really you're giving away the government's money ranked. OK but it's eleven million so the chances of any of this knowing. And yes he earlier there's not a lot of these people out there but should be used to be a lot lower he used to be like you one million dollars persons or two million dollar for a couple. So used to allow lower east feel are more common. But it still happens and and what you realize is you're lucky you're giving money but since it's not taxed not reportable nothing. You know you're really giving our party uranium part of the government's what died and I understand if you do more than that number it's OK you just need to file a gift tax return and it's a real simple thing you do when your taxes. An account can help you with that are Turbotax or help you with that pretty easily. But then the person you gave it to rest a pay taxes on that amount over now I. I attacks like these are reported use have to reported as a gift so it's kind of like when your parents say just tell us who dated no one's in trouble reports that you playing well let me yet. Find us so it's it's over time that the IRS is gonna keep that record and it's gonna affect. You were eventual state taxes. Right did you may not have any eventual state taxes so that might not matter what I do not mean you were absolutely supposed sure for. If you give more than 141000 dollar per person. But I had to my knowledge or know anybody that's ever been cool is no one's ever got in trouble for yeah I mean it's it's not you know think about what do they really do. Because it's you don't owe taxes do you did it a lot of thought this forms right once again there's not a lot of reason for the Irish like hunt you down for giving away too much money. So here's we've learned today on once again that 529 plans are rock. And that you can buy gift of college cards at Toys 'R' Us and that most of us don't really know anyone who has more than eleven million dollars and and that therefore that is taking time setting can hop the next episode of her money the podcast. Hurt key means tropical storms blizzards nor'easter are super storms. All of these affect more than the weather can affect your wallet big time we're gonna talk about. Was storms and your money have in common that's on the next episode of her mind you the podcast. Hate if you want more information about what we talked on today's show or if you just have other questions about money. Is our website it's WWW Doug Carol financial dot com or you can only should mean email whether it's through the podcast or through my website. I'd be happy to help if I can't. Her money is sponsored by Carol financial. Hi this is handling natural financial advisor with Carol financial retirement may seem like a long way down the red but the Sunnis start the better off you'll be in the long run. But you're starting a family. Buying your first ten or simply want some help figuring out where to start join us for our new simply saving series this fall and of Mecklenburg prairie on Tuesday October 24 at 530 club walking three easy ways to save and things you should be doing to ensure your contract for retirement. To register for complementary workshop please visit our website at Carol financial dot com it's Carol finance up its retirement simple. They're her mighty my guess is just a tiny Sherry lynch and meet Chris Carroll. Our executive producers or new trial but. Jonathan mini and Carol Poteat our producers Heather fur and our technical director and editor is Billy black special thanks Emily Nestle and Marion had roots confirmation from this episode ornaments and other episodes and subscribe to this podcast visit. Her money podcasts dot com. To her money podcast is now on Twitter. Follow us tweet us at her money podcast email us your questions asked questions at her money podcast dot com. You can even use your phone's voice memo out to record your questions and email it to questions at her money podcast dot com and listen we might even played on the show the. Herman podcasts production of intercom Charlotte and Carol financial. 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