GA Education Update, Financial Leftovers, and Sex, Drugs & Hedge Funds?!

December 17, 2007

Georgia Education Update:
If you are a Georgia listener then Christmas has come early this year. As of December 11th the GA 529 plan has been drastically improved (probably because of the pressure of competition between the different 529 plans). The big improvements included:

** Georgia state income tax deduction update – For tax years beginning on or after January 1, 2007, contributions to an account are deductible up to $2,000 on behalf of any Beneficiary for Georgia income tax purposes. A Georgia taxpayer is not required to itemize his or her deductions to make this adjustment to income. Furthermore, there are no longer annual income limitations to claim this deduction.

** New Investment Options – Effective December 11, 2007, the Path2College 529 Plan will add the 100% Fixed-Income Option. Effective March 10, 2008, the Plan will also add the Money Market Option.

** Lower Fees – Total annual asset-based fees for each of the previously available Investment Options have decreased from .78% to:
** .65% for the Managed Allocation and Aggressive Managed Allocation Options
** .50% for the 100% Equity Option
** .71% for the Balanced Fund Option

I have also covered in today’s show “10 Little Expenses that add up fast” according to Bankrate.com (click here for the link) This is probably a great time to have this discussion since the Holiday season can lead to some run away expenditures. Remember with money especially, you have to sweat the small stuff.

Great news out there in the world of mutual funds. Fund companies are starting to move away from redemption fees that were implemented to stop the institutional trading scandals that occurred back in 2004. Fund companies have found other ways to stop these bad practices without penalizing the masses. Check out the full article in InvestmentNews by Ilana Plyak (click here for link)

Remember there are quite a few Snake Oil salesmen out their, so be very careful when you get lunch and dinner invitations in the mail for financial seminars. Check out the article in InvestmentNews by Joseph Borg titled “Remember, there’s no such thing as a free lunch” (click here for link)

Also covered from InvestmentNews by Sara Hansard titled “401(k)s not enough for young workers” (click here for link)

The last article from today’s show came from reading Boston Gal’s Open Wallet Blog (click here for link). Boston Gal had an entry titled "Sex, drugs, hedge funds, and outrageous cable bill?!?". The entry linked to an article that appeared in the New York Times about the death of Seth Tobias titled "A Lurid Aftermath to a Hedge Fund Manager’s Life" by Andrew Ross Sorkin. I was shocked by his cable bill just like the Boston Gal, but I think that this also shows that you need to pay attention to who you are working with. If the excesses of the investment industry lead to more individuals like Mr. Tobias it will not be long before we have shows titled "Behind the Money" similar to the "Behind the Music" episodes on VH1.

One small request…. If you like the content of the Money Guy show please let your friends and family know about us and also feel free to leave a positive comment on iTunes. I believe that much of our success has come from our prominent location on iTunes and your positive comments. Thank you for your support and for being an active audience!

TAGGED WITH: 529 plans



Most Recent Episodes

Financial Advisors React to Money Advice from ChatGPT

Will ChatGPT be your new financial advisor? In this react episode, we’ll break down some money advice from ChatGPT and compare it to our own thoughts and opinions. Enjoy the Show? Sign up for the Financial Order of Operation (FOO) Online Course! Sign up for our Know...

Financial Planning 101 (By Age) 2023 Edition

Throughout every decade, there are different areas of your financial life that come in and out of focus. In this episode, we'll discuss what you need to focus on by age, pitfalls to watch out for, and how to know you're doing it right. In this episode, you'll learn:...

Is the 2023 Housing Crash Around the Corner?

Housing prices skyrocketed after the pandemic to all-time highs, and mortgage rates have more than doubled since 2020. Homes are harder to purchase for more Americans, which means it’s more important than ever to make sure you are ready to buy before purchasing. In...

Watch This Before Rebalancing Your Investment Portfolio!

85% of Americans don’t rebalance their 401(k). Are they making a huge mistake? In this episode, we’ll discuss the “why” behind rebalancing, how to do it, and the data on whether or not rebalancing can increase your return. In this episode, you’ll learn: What...

Don’t Make This HUGE 401(k) Mistake!

Americans are making a HUGE mistake in their 401(k) that could cost them thousands by retirement. We’ll talk about why this is happening and how you can avoid making the same mistake in this Q&A episode! For more information on how to make the most out of every...

Alex Hormozi’s Top Money Advice! (Financial Advisors React)

In this episode, we react to Alex Hormozi's financial advice. Enjoy the Show? Sign up for the Financial Order of Operation (FOO) Online Course! Sign up for our Know Your Number Course! Check out our Net Worth Tool! Get FREE downloads full of financial advice from...

Everything You Need to Know About Finances in Your 20s

In this episode, we discuss everything you need to know about finances in your twenties. In this episode, you’ll learn: The top financial advice for your twenties How to start building wealth and the steps you should take Enjoy the Show? Sign up for the Financial...

The Most Valuable Asset in Building Wealth!

This episode will show you how to maximize the most valuable resource you have - starting right at this moment. What is it, you may ask? It’s TIME. If you give your money time to grow, you’ll be amazed at how much your dollars can become - it’s incredible! How wild is...