Tag: investment

4 Tips to Save for Your Child’s College Tuition

Do you have children or grandchildren? If you do, you are likely considering their higher education opportunities long before they have similar thoughts of their own. If trends are any indicator, the cost of four year and two year universities continue to rise every year. As the cost of college increases, planning and investing in your child’s future now becomes even more important.

1. Take Advantage of Merit Based Scholarships

Some families don’t fill out the Free Application for Federal Student Aid because they believe their income is too high for their child to qualify. No matter your income, it is worth filling out. Most colleges offer aid based on high school academic achievements (merit). If you don’t fill out the form, you cannot be considered for those scholarships. You can apply by visiting https://fafsa.ed.gov and clicking “Start A New FAFSA.”

2. Choose an Investment Program

A 529 college savings plan is named after Section 529 of the Internal Revenue Code. This type of plan allows you to steadily grow a designated account that is designated for college tuition and other college costs. As long as the money is used appropriately, the state-sponsored investment plan gets special tax benefits. The money invested in a 529 grows tax free and is also tax free to spend on college expenses such as tuition, books, and fees. Even if you aren’t certain that your child will attend college, it’s still a good investment because you can change the recipient of the money. A grandchild, sibling, nephew, niece, or even you can use that money for education. In some states, the money in a mature 529 account can even be withdrawn for uses other than college.

3. Enroll in Rewards Programs

Some credit cards offer a percentage back when you shop and buy gas. If you swipe a card when you dine out, a using a card with a rewards program would give you some of that money back monthly or quarterly. Although these programs typically award a very small percentage of the purchase, this money can be invested into a designated college savings account or a 529 plan. When the new graduate in your life is ready to begin their higher education, you’ll be thankful for every penny saved.

4. Ask for College Fund Contributions Instead of Socks

Tired of birthday gifts or holiday gift that seem unnecessary? Instead of asking friends and family to buy your child toys, ask them to contribute to a college tuition savings account. Many states offer tax deductions for financing a college account, even if the child is not your own.

Plan Ahead

While it may be unrealistic to work one’s way through college like in decades past, all hope is not lost. Like all investment strategies, your biggest ally is time. With the right strategy and an early start, a debt free education really is possible.

Seeking the American Dream of Home Ownership

by I Am Benchmark

Are you living the American Dream?

Most of us have a pretty good idea about what the American Dream is. In case you don’t, we looked it up:

[quote]“The American Dream is a national ethos of the United States, a set of ideals in which freedom includes the opportunity for prosperity and success, and an upward social mobility for the family and children, achieved through hard work in a society with few barriers.” – source: Wikipedia.com[/quote]

If we carry this definition further, we find that many Americans see homeownership as an important part of that dream. Let’s look at some recent statistics.

Existing home sales in May of this year were 9.2% higher than the same time last year. Home sales in the Midwest and Northeast saw gains of at least 10%.

If the growth of home sales alone isn’t enough to convince you that owning a home is “living the American Dream,” there’s more. Studies have shown that purchasing a home is making an investment that will appreciate over time. What does that mean? Let’s look at an example. If you already own your home, you are enjoying an average of 7.9% gain in the value of your home just in the last year!

In addition to the financial benefit, owning your home is a slice of freedom. No paying rent to a landlord. No sharing an apartment complex floor with 30 other people. It’s yours.

As the housing market continues to show signs of strength, now could be the best time to invest in your piece of the American Dream. Whether you are looking for a home that is worth $100K or $1M, at Benchmark, we are here to welcome you into the rising trend of homeownership. You will receive more than just another set of keys…you will be given the keys to your HOME.

Fact Sources: NAR’s Existing Home Sales Report 6/22/15

Thinking About Investing in Rental Real Estate?

by bmadmin

It’s easy to get thrown off by the appearance of a property, your emotions, or what the media is saying. Here are four ways to avoid making that mistake if you are thinking about investing in rental real estate:

Reality Check One: Who is Your Target Market?

If the property is a good fit for your target market, it doesn’t matter if you wouldn’t live there. A renter may enjoy the property.

Reality Check Two: Are You Emotionally Involved?

Emotions shouldn’t be involved in buying a rental property, but it’s something to be wary of. If, at any point in the negotiations, you feel you can’t walk away from the deal, you need to take a step back and review everything! When your emotions are involved, you can’t make rational decisions. It is also a good idea to have a trusted adviser to bounce ideas off and receive confirmation when the property is good.

Reality Check Three: Are the Numbers Really What They Say They Are?

The numbers might look good on paper, but will the rent cover all the expenses? Make sure the numbers are what the sellers say they are. Get copies of any leases to verify rents. Check market rental rates for the area to make sure the current tenants aren’t under or overpaying. And make sure you obtain copies of the bills you’ll be responsible for (taxes, utilities, insurance, etc.).

Reality Check Four: Are You Judging the Book by Its Cover?

Many opportunities are missed because a property makes a negative first impression. The best deals are often those that look rough but can be easily rehabbed. Some properties may need a major face-lift to maximize its potential – but don’t judge a property strictly on its looks or you may miss out on a deal that could pay off big in the long run.