How much do you have in your checking account at the monent?

[TommyGavin 790]

if anything ever happens and we need the money, ING can be used .

like an abortion ?

 

- $600 for kids 529 plan

whats this ?

[Patriotsfatboy1 1,432]

whats this ?

 

Please tell me that you are just joking. If you have kids and you don't know about 529's, then brush up. Invest now. Recent legislation has increased their value to the average American.

 

Let me know if you are not joking.

[TommyGavin 790]

Let me know if you are not joking.

 

I aint joking - seriously

[GutterBoy 2,284]

What? First off, I don't pay the taxes up front to the mortgage company. I pay them monthly. My town bills them quarterly. Therefore, the most that the mortgage company has in their possession is 3 month's taxes (most likely 2). However, there are some instances where we dip lower than that because of increases in taxes.

 

So essentially, we might have $2k in escrow that we are making money on (remember, I get interest that is equal to a normal savings account). If you assume that large amount and 4% compounded monthly, then we are talking about a little over $6 per month MAXIMUM and that is not including what I get from the escrow interest.

 

As I stated earlier, I piss more than that away in a night (I am heading to the can right now). Maybe, if you folks would spend more time figuring out how to make more than $6 per hour, then you would not worry about this sort of thing

 

You should probably check your statement. I remember back when I used to be an escrow sucker, that they had to maintain a minimum balance of double your monthly payment. So if your taxes and insurance come to $2000/month, you have to pay $4000/month. It's much better to just pay it yourself.

[Patriotsfatboy1 1,432]

I aint joking - seriously

 

It is for higher education savings for your kids. Money is put in post tax, but is tax free from there on out.

 

I have my stuff in American Funds (Virginia has a nice plan). More info can be found here:

http://www.americanfunds.com/college/colle...enefits.htm?r=o

 

 

Basically, my kids are going to be very expensive to put through college (they don't have scholarships for stuipidity apparently), so I have to save well.

[TommyGavin 790]

thanx - I was just googling it -

 

this is from wikipedia - which type is yours ?

_______________________________________________

There are two types of 529 plans: prepaid and savings.

 

Prepaid plans allow one to purchase tuition credits, at today's rates, to be used in the future. Therefore, performance is based upon tuition inflation.

Savings plans are different in that all growth is based upon market performance of the underlying investments, which typically consist of mutual funds.

 

 

I put coins in a jar for my kids edumacation

[Patriotsfatboy1 1,432]

You should probably check your statement. I remember back when I used to be an escrow sucker, that they had to maintain a minimum balance of double your monthly payment. So if your taxes and insurance come to $2000/month, you have to pay $4000/month. It's much better to just pay it yourself.

 

No, I actually keep an eye on it. I was not a big fan of escrow originally. Once I factored in the effort to track it and the cost of stamps, it was easier to cut one check to handle it all.

 

We actually have escrow balances that go negative because our tax rates go up and our town is not good at giving advanced notice. It works out well enough that the difference in cost savings (even on a conservative basis) is not a factor.

 

thanx - I was just googling it -

 

this is from wikipedia - which type is yours ?

_______________________________________________

There are two types of 529 plans: prepaid and savings.

 

Prepaid plans allow one to purchase tuition credits, at today's rates, to be used in the future. Therefore, performance is based upon tuition inflation.

Savings plans are different in that all growth is based upon market performance of the underlying investments, which typically consist of mutual funds.

I put coins in a jar for my kids edumacation

 

Savings. Prepaid plans are typically done by state and are not really 529 plans. The '529' represents the section of the Federal Tax code that addresses this type of account.

 

I have $600 pulled from my account every month automatically to cover this for my kids. I doubt that it will cover everything, but it will definitely help. All I know is that they are going to be on their own as soon as I can kick them out the door

[GutterBoy 2,284]

No, I actually keep an eye on it. I was not a big fan of escrow originally. Once I factored in the effort to track it and the cost of stamps, it was easier to cut one check to handle it all.

 

We actually have escrow balances that go negative because our tax rates go up and our town is not good at giving advanced notice. It works out well enough that the difference in cost savings (even on a conservative basis) is not a factor.

 

You're making fun of people trying to save $15/month yet you're factoring the cost of a $.41 stamp every three months?

 

It's a state law that you have to have a minimum balance, it can't go negative, but nice try.

[Patriotsfatboy1 1,432]

You're making fun of people trying to save $15/month yet you're factoring the cost of a $.41 stamp every three months?

 

It's a state law that you have to have a minimum balance, it can't go negative, but nice try.

 

Really, it is a state law that it can't go negative? Please show me where in MA that is the case, because I can show you a statement that shows it HAS gone negative for me.

 

Again, I said that the $15 per month was not valid. I was saying that the most conservative number would put it at $6 per month. When you factor in several stamps (3 per insurance payment, 1 per quarterly tax payment), it cuts into that $6.

 

Time for you to get back to the Sanctuary, Butters.

[Birdseed 1]

$9,600

 

 

 

chump change

[GutterBoy 2,284]

Really, it is a state law that it can't go negative? Please show me where in MA that is the case, because I can show you a statement that shows it HAS gone negative for me.

 

Again, I said that the $15 per month was not valid. I was saying that the most conservative number would put it at $6 per month. When you factor in several stamps (3 per insurance payment, 1 per quarterly tax payment), it cuts into that $6.

 

Time for you to get back to the Sanctuary, Butters.

 

I see you still haven't grown up, which makes it impossible to have a rational conversation with you.

 

You're right, escrow accounts are smaht. Lenders do this to make you happy, even to the point that they will go negative on the balance frequently, and not ask you for anything in return. Don't bother reading up on this.

[Patriotsfatboy1 1,432]

I see you still haven't grown up, which makes it impossible to have a rational conversation with you.

 

You're right, escrow accounts are smaht. Lenders do this to make you happy, even to the point that they will go negative on the balance frequently, and not ask you for anything in return. Don't bother reading up on this.

 

I see that you still can't back up your claim.

 

I said that I did not like them originally, gave it a try, and I don't see the problem with it.

 

Let me know when you become rational and I will have a conversation with you, Butters.

[Birdseed 1]

Generally, escrows are not in one's best interest. Also, ignore quarterly tax payments and pay the nominal fine at the end.

 

HTH

[Patriotsfatboy1 1,432]

Generally, escrows are not in one's best interest. Also, ignore quarterly tax payments and pay the nominal fine at the end.

 

HTH

Are you talking about ignoring real estate taxes or income taxes quarterly? We are talking about real estate taxes in this discussion.

[Birdseed 1]

Are you talking about ignoring real estate taxes or income taxes quarterly? We are talking about real estate taxes in this discussion.

 

Real estate taxes in the first sentence. Income taxes in the second. I didn't mean to hijack.

[GutterBoy 2,284]

I see that you still can't back up your claim.

 

I said that I did not like them originally, gave it a try, and I don't see the problem with it.

 

Let me know when you become rational and I will have a conversation with you, Butters.

 

Here is a link explaining escrow balances:

 

http://www.hud.gov/offices/hsg/sfh/res/respafaq.cfm

 

Here is another helpful link:

 

http://www.mtgprofessor.com/A%20-%20Escrow...ure_escrows.htm

 

Also, google "class action escrow balance" and see what comes up.

 

Or, you can be an ass like you always are, and insist that paying into an escrow account is smart, in which case, I don't give a fock, seriously.

[DuckStupid 40]

Patfat, you need to do a little homework on Escrow accounts. Do you really think the Mortgage companies push for these for your benefit. Also max out a roth before you throw money in a 529. At least the roth can be used for something besides education if you do get lucky and one of your idiots gets a full ride.

[Patriotsfatboy1 1,432]

Here is a link explaining escrow balances:

 

http://www.hud.gov/offices/hsg/sfh/res/respafaq.cfm

 

Here is another helpful link:

 

http://www.mtgprofessor.com/A%20-%20Escrow...ure_escrows.htm

 

Also, google "class action escrow balance" and see what comes up.

 

Or, you can be an ass like you always are, and insist that paying into an escrow account is smart, in which case, I don't give a fock, seriously.

 

So you provided links, but did not read them? Typical. In the HUD link, it does not show where a negative escrow balance is not allowed by law. In fact, it shows that the lender is limited in the escrow amounts to be withheld.

 

Does RESPA require lenders to maintain a cushion?

 

NO. The RESPA statute and regulations do not require the lender to maintain a cushion. However, since 1976 the RESPA statute has allowed lenders to maintain a cushion equal to one-sixth of the total amount of items paid out of the account, or approximately two months of escrow payments. If state law or mortgage documents allow for a lesser amount, the lesser amount prevails.

You can call me an ass all you want (typical of you, Butters), but you have still not convinced me that my situation dictates a change. I was hoping that you would have something that was convincing. Again, you disappoint in this thread

 

Patfat, you need to do a little homework on Escrow accounts. Do you really think the Mortgage companies push for these for your benefit. Also max out a roth before you throw money in a 529. At least the roth can be used for something besides education if you do get lucky and one of your idiots gets a full ride.

 

Really. Are you an investment counselor? I find it interesting that you would try to give advice about what is good for my particular investments withouth even knowing my situation. That is what I was giving edjr grief about, what Butters needs to realize, and what you might want to consider.

 

Unless you know the full picture, you might want to reconsider tossing around the generalities. Birdseed had the right approach.

[DuckStupid 40]

So you provided links, but did not read them? Typical. In the HUD link, it does not show where a negative escrow balance is not allowed by law. In fact, it shows that the lender is limited in the escrow amounts to be withheld.

You can call me an ass all you want (typical of you, Butters), but you have still not convinced me that my situation dictates a change. I was hoping that you would have something that was convincing. Again, you disappoint in this thread

Really. Are you an investment counselor? I find it interesting that you would try to give advice about what is good for my particular investments withouth even knowing my situation. That is what I was giving edjr grief about, what Butters needs to realize, and what you might want to consider.

 

Unless you know the full picture, you might want to reconsider tossing around the generalities. Birdseed had the right approach.

 

 

I am not an investment counseler. I work in IT. HTH.

 

But. Common sense says it's stupid to put money in escrow. And if there's one thing I'm full of, it's common sense.

[Patriotsfatboy1 1,432]

I am not an investment counseler. I work in IT. HTH.

 

But. Common sense says it's stupid to put money in escrow. And if there's one thing I'm full of, it's common sense.

 

Again. I am the same as you. I was very skeptical of escrow. I did not want it and went without it for quite some time. Then I did some investigation on the risks and costs. It was not so bad on that level, so I tried it out. Thus far, it has not gone worse than I expected. In fact, I was surprised with the balance going negative on more than one occassion and with the relative ease of how I was able to change escrow accounts from one lender to another.

 

Perhaps many of the issues that Gutter spoke about earlier have caused the changes in the laws described in the links provided and it may be that lenders are not in a position to steal from you in this manner (they get you in plenty of other ways). I don't know. However, I can't see where a change is necessary.

 

With respect to the 529's, I can qualify for 529 contributions but not Roth's. That was all that I was saying. What is best for you is not what is best for me.

[DuckStupid 40]

With respect to the 529's, I can qualify for 529 contributions but not Roth's. That was all that I was saying. What is best for you is not what is best for me.

 

 

Whoa dude, I'm happy you make more money than me and have a huge cack.

 

Also regarding Escrow, if you're comfortable with it, that's your call. I prefer control of the money I have and would rather not let someone else fock me.

[Patriotsfatboy1 1,432]

Whoa dude, I'm happy you make more money than me and have a huge cack.

 

Also regarding Escrow, if you're comfortable with it, that's your call. I prefer control of the money I have and would rather not let someone else fock me.

 

I can assure you that I don't have the huge cack (ask your Mom).

Sorry, I could not resist that one

I am hung like an elevator button.

 

Getting the thread (somewhat) on topic, I was merely pointing out that many mortgages include things other than the mortgage itself and that is not necessarily a bad thing.

 

I did not imply that I make more money than you. It was merely what I qualify for and which investment vehicle makes the most sense for me. I would not want to tell you what you should or should not invest in, although I might steer you towards something for you to look into.

[DuckStupid 40]

I can assure you that I don't have the huge cack (ask your Mom).

Sorry, I could not resist that one

I am hung like an elevator button.

 

Getting the thread (somewhat) on topic, I was merely pointing out that many mortgages include things other than the mortgage itself and that is not necessarily a bad thing.

 

I did not imply that I make more money than you. It was merely what I qualify for and which investment vehicle makes the most sense for me. I would not want to tell you what you should or should not invest in, although I might steer you towards something for you to look into.

 

Hey man, it's ok. I'm not a director or VP of ###### and as such, only make a little over 6 figures. I'm comfortable with that as I don't have to deal with all that political ###### and that's enough for me to live pretty comfortably on. Don't sell yourself short. You obviously make too much money to give a fock what happens with your money. If that's the case, I'm happy for you.

[Drizzay 648]

Ok, I got a serious question...what is the "risk" of not putting your money in escrow? You don't send you payment in on time? If that is the case, it is your own fault. Here in Minny, taxes are due 5/15 and 10/15. If you can't remember this, you are a focking moron. Granted you aren't gonna save $80,000 a year by paying them yourself. But the whole point is making more of a payment towards your "mortgage" to cut down on the interest. Not to say ALL people who put money in escrow are lazy, but just keep the money yourself, and earn that extra $20 a year in intertest...that's half a carton of smokes!

[DuckStupid 40]

Ok, I got a serious question...what is the "risk" of not putting your money in escrow? You don't send you payment in on time? If that is the case, it is your own fault. Here in Minny, taxes are due 5/15 and 10/15. If you can't remember this, you are a focking moron. Granted you aren't gonna save $80,000 a year by paying them yourself. But the whole point is making more of a payment towards your "mortgage" to cut down on the interest. Not to say ALL people who put money in escrow are lazy, but just keep the money yourself, and earn that extra $20 a year in intertest...that's half a carton of smokes!

 

Hey Drizzay, where in MN you from? I didn't know you were a 'sotan.

OR, I could read and realize you're in St. Louis Park.

[Drizzay 648]

St Jewish Park...169 and Cedar Lake...abouts

 

you?

[DuckStupid 40]

St Jewish Park...169 and Cedar Lake...abouts

 

you?

 

Andover. Just north of Bunker Hills if you know where the fock that is.

[Drizzay 648]

Andover. Just north of Bunker Hills if you know where the fock that is.

 

Cheese and Rice, that's damn near Canada!

 

But damn beautiful country.

 

You work up there or in the city?

[DuckStupid 40]

Cheese and Rice, that's damn near Canada!

 

But damn beautiful country.

 

You work up there or in the city?

 

I work in Little Canada, Maple Grove, and Minnetonka. HTH.

[Drizzay 648]

I work downtown...as nice as the women are, it would still be nice to work in the 'burbs. It took me focking 45 minutes to make it from 11th st downtown to Louisiana exit on 394 today. That is some buuuuuulshit!

[TommyGavin 790]

back to the 529 - what happens if your kid does get a full scholorship and or doesnt go to college - is the money heavily taxed ? Penalized ?

[cgod 0]

back to the 529 - what happens if your kid does get a full scholorship and or doesnt go to college - is the money heavily taxed ? Penalized ?

Accounts can be transferred to siblings or certain other relatives tax and penalty free so if you have other children no need to fret. Investments in the funds as you probably know aren't pre-tax so the money you initally invested has already been taxed. Earnings are free from Federal taxes (and also state taxes in some states) for distributions on qualified expenses. You will however, be taxed at your normal rate on all earnings of non-qualified withdrawls and also pay a penalty which in most cases is about 10%. Since you can't predict enrollment or financial aid it's better to start investing now and worry about the financial implications of not using it for qualified expenses later. Sure you'll get taxed and penalized on the money but it'll still be extra in your pocket that you weren't counting on.

 

A good site with lots of helpful info is http://www.savingforcollege.com.

 

Another thing to keep in mind about 529 funds, and I will quote the excerpt from savingforcollege.com, is that 529 savings don't significantly impact financial aid calculations in most instances

 

529 plans and Coverdell ESAs may be two of the better options to save for college without jeopardizing financial aid. These are treated as assets of the account owner, not the beneficiary.

 

If a parent owns the 529 account or ESA, up to 5.6% of the value is included in EFC. If grandparents own the account, none of the value is included. A 529 account or ESA owned by the student, or by a trust or custodian for the student, will not be counted as the student's asset.

 

So, if I read it correctly, and reading comprehension was never a strong suit, it sounds like the worst case scenario is that 5.6% of the value of the account can be counted in determining financial aid. I am not sure, and thus need to reread about it, if you can transfer ownership of the account (I know you can change beneficiaries to certain relatives of the initial beneficiary) which would allow you to make that change at an ideal time to help in the financial aid process.

 

Hope I helped a bit.

[Patriotsfatboy1 1,432]

I will have to do some more digging, but recent legislation has made the 529 much more attractive than a Coverdell and I would echo much of what cgod pulled up. I would also note that even if you kid gets a scholarship, you could utilize the account for grandkids or (as I was thinking) your own education.

[cgod 0]

I will have to do some more digging, but recent legislation has made the 529 much more attractive than a Coverdell and I would echo much of what cgod pulled up. I would also note that even if you kid gets a scholarship, you could utilize the account for grandkids or (as I was thinking) your own education.

I know at one point there was some concern about distribustions being taxed even on qualified expenses after 2010 but Congress enacted legislation that basically said that those distributions will remain tax free forever (or until they decide they need another source of income.) Also, I believe the amount you can put in a Coverdell was significantly decreased (I think from $2k to $500 or something silly like that) where before it was a good idea to max out yearly contributions in a Coverdell and then put the remaining in the 529 but now with just the above circumstances (not to mention that most 529 plans allow $250k in an account some as much as $320k in contributions alone) it's usually best to just use the 529 plan as your college savings vehicle. Do the research as each state offers a plan but you are not bound to use your state's plan. The things you want to look for are what kind of benefits your state's plan gives to residents (tax free distributions, matching contributions etc.) along with (and this goes for any investment you make) such things as fees, performance etc. A lot of plans offer both static (you can control where the money is invested) and managed funds (run by a manager to reflect where you are in the process) so you have flexibility with what to do.

[cgod 0]

for TommyGavin

[TommyGavin 790]

Hope I helped a bit.

Sure did.

 

911 whats your emergency?

I need Fiancial help

Hold on I'll connrct you to cgod.

Thanks