529 Plans Explained—3 Tax Traps Parents Must Avoid - E31
Michael and Brady break down everything you need to know about 529 plans: the education savings tool that parents, grandparents, and families often hear about but rarely understand in full. They reveal how these plans work, the tax advantages, common pitfalls, and strategies to maximize flexibility without jeopardizing retirement goals. Whether you’re saving for your child’s first semester or thinking long-term for your grandkids, this episode arms you with the clarity and confidence to make smart financial decisions about higher education.
Key Timestamps:
(00:00) - What is a 529 plan?
(04:00) - Tax advantages and triple benefits
(07:00) - FAFSA and financial aid considerations
(10:00) - Risks, penalties, and inflexibility
(13:00) - Strategic uses and family planning
(16:00) - In-state vs. out-of-state costs
(20:00) - Building a flexible financial plan
(25:00) - Tuition projections and realistic funding
(28:00) - Investment strategies inside 529 plans
(30:00) - Secure Act 2.0 and Roth conversion benefits
Key Topics Discussed:
Financial Fortitude, Genesis Wealth Planning, Brady Hemmerle, Michael Acosta, Financial Wellness, Wealth Building, Financial Psychology, Financial Advisor, Finance Coach, Student Loan Debt, Finance Guidance for High Earners, Business Owner Finances, Hiring a Financial Advisor, Student Loan Forgiveness, Tax Strategies, Retirement Planning, Investing Strategies, Financial Guidance for High Earners, Smart Money Moves for High-Income Professionals, Tax, Wealth & Investment Strategies for Top Earners, Financial Planning for Doctors, Lawyers & Execs, Wealth Management Tips for High-Income Earners, Expert Advice on Taxes, Investing & Growing Wealth, High Earner Money Talk, Financial Wisdom for 6-Figure+ Entrepreneurs, Smart Strategies for Managing High Income
Money, Taxes & Freedom for High-Earning Professionals, The Dave Ramsey Show, BiggerPockets Podcast, The Motley Fool Money Show, We Study Billionaires, ChooseFI, Afford Anything, 529 college savings, Education tax benefits, FAFSA planning, Retirement vs college savings, Secure Act 2.0
Mentions:
Website: https://www.genesiswealthplanning.com/
Michael’s LinkedIn: https://www.linkedin.com/in/michaelracosta/
Brady’s LinkedIn: https://www.linkedin.com/in/brady-hemmerle-cfp%C2%AE-75043013a/
Financial Health Checkup: https://www.livingbalancesheet.com/lbsVision/lite/michaelracosta
UNC Chapel Hill Cost Breakdown (2024)
Secure Act 2.0: 529 to Roth IRA Conversion Rules
FAFSA Asset Assessment Rates by Account Type
This podcast is for informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice. Guest speakers and their firms are not affiliated with or endorsed by PAS, Guardian, or Genesis Wealth Planning and opinions stated are their own. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. All investments and investment strategies contain risk and may lose value.
Michael Acosta is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 6115 PARK SOUTH DRIVE, SUITE 200, CHARLOTTE NC, 28210, 704-5528507. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. Genesis Wealth Planning is not an affiliate or subsidiary of PAS or Guardian. CA Insurance License # 0M50974. 7237198.19. Expiration 10-27.
