Finance is Fun: March 26, 2013 

Take care of you- As parents it is easy, it is your heart, to give all you have for your child. It hurts your heart when they struggle physically, in every way. So the temptation is to take away all pain by sacrificing your own welfare, your strength, everything you have for your child.That philosophy of total self-sacrifice is terrible in developing strength for your growing child. It creates a weak and needy person when what you want is to bring up a resilient, caring, strong individual.     So, first, take care of your future. As an example of your worth and to make sure that in your retirement you can live independently. Saving for education- There are at least three tools that can be used for your child’s education. These vary in how they are taxed, in who has control of the assets. They all have pros and cons and to get a better understanding of what might be the best choice for you, speak with an advisor or do your homework.529- Tax-deferred savings in which the participant has control and used for almost all post-secondary education from pursuing a medical degree to a trade school. In the State of Maine the accounts are called NextGen. Available either on your own – the paperwork is given to you at the hospital or birthing center or available with more investment options though an advisor these accounts limit a child’s control. And with some teenagers, you know that can be a benefit.Joint savings accounts- Held at a brokerage or through your local financial institution, a joint account allows a child to access the money sometimes before you’d like them to have it and for purposes unplanned. Taxes are paid each year on the growth in these accounts. You have lots of flexibility in its management. Roth accounts- IRAs can be used for ‘qualified higher education expenses.’ I am not a tax expert but these withdraws are free of penalty in the event they do not exceed the expenses, they are used for the account owner or the account owners spouse, child, or grandchild, even your spouse’s grandchild.There are many more details that these few minutes cannot probe, As I said before, speak to an expert or do your homework before deciding on what strategy works best for you.Citation: securities and advisory services offered through Wall Street Financial Group, Inc. Registered Investment Advisor. Member FINRA/SIPC. Wall Street Financial Group, Inc. and Norumbega Financial are separate entities, independently owned and operated. (CR9047)