Perspectives Blog

Capture five tax benefits with a 529 college savings plan

Columbia Management, Investment Team | March 21, 2014

…is not subject to the new 3.8% net investment income surtax. Owning a home. A financially secure retirement. A college education for a child or grandchild. These are aspirations most of us can relate to. Fortunately, there are tax incentives available to help you pursue these substantial financial goals. In the case of college savings, 529 plans offer distinct tax advantages over other college savings vehicles. With a 529 plan, parents, relativ…

Five college savings myths set straight

Columbia Management, Investment Team | August 6, 2014

For college savers, 529 plans offer various tax benefits, flexibility and control. 529 account owners have a choice of state plans, regardless of residency or income level. 529 account beneficiaries can use funds at any eligible educational institution and for a number of expenses in addition to tuition. A 529 college savings plan is one of the smartest ways you can save for college, offering tax benefits, flexibility and control. Unfortunatel…

Could a 529 plan help you pay less for college?

Columbia Management, Investment Team | May 22, 2014

College savings plans offer an important tool for managing the cost of higher education. Saving in advance could offer a significant cost savings compared to taking loans during college. Use our 529 Savings vs. Loans Calculator to run your own personalized estimate. Saving for college early on can greatly benefit you in the long run. By saving in an investment vehicle such as a 529 college savings plan, you may be able to avoid relying on loan…

Ahead of the trends – Washington update on retirement savings initiatives

Columbia Management Learning Center , | July 31, 2014

Various federal government initiatives, including tax reform, will impact the way Americans save for retirement. Trends to watch include enforcement, pension de-risking and participant empowerment measures. Staying current on changes can help you identify critical retirement savings decision points. Retirement security is the financial issue that is most disconcerting to Americans.* Likewise, the current administration

Interest rates in a highly indebted economy

Zach Pandl, Portfolio Manager and Strategist | October 13, 2014

…tly equal nominal GDP growth in this case. Exhibit 5: Stable debt-to-income ratio with lower rates and/or higher savings The dotted line, labeled “s > zero”, shows the same thing except with positive private sector savings. In this case, the debt stock could remain stable even with interest rates above nominal growth, because the private sector is running the equivalent of a budget surplus. Lately, our estimate of the private sector savings b…

Millennials, are you ready to take the next steps?

October 9, 2014

…nd aggressively to take advantage of the potential benefits of dollar cost averaging and to give your retirement savings a solid start. Lesson 3: Take advantage of retirement savings options Many financial professionals recommend contributing to an employer’s 401(k) plan at least the maximum amount that the employer will match. So if the company matches up to 5%, employees should consider contributing 5% each pay period. Not taking advantage of a…

Trust accounts and the net investment income tax

Abram Claude, Vice President, Columbia Management Learning Center | November 14, 2014

…hat are exempt from the NIIT, include charities and retirement plans charitable remainder trusts, Archer medical savings accounts, health savings accounts (HSAs), qualified tuition programs, and Coverdell education savings accounts. Next in this series: Asset allocation and asset location: How both contribute to after-tax return Asset location: Its role in after-tax return and retirement planning What you may have missed: Strategies for busine…