And for work quite well watch -- Christopher sands who. Partner and founder of worst point so we'll see. Tired of the same sales pitches disguised as financial advice -- is a certified financial plan. Investment. Here's Chris and. This afternoon Austin, Texas. I'm so glad to be back review after. Two or three week hiatus how long was that tells me it was a three week hiatus. Where I ran off California -- it is an important business and and Scott Morgan took over the show and I'm sure did a fantastic job -- -- the ratings on the -- here -- and I mean what's a retired my number one van. Fun lions are just lighten -- we didn't we didn't have enough hands and fingers should not happen yeah New York State's calling me wanna syndicate the show. That's been really excited that we can take just turn around time to get our chosen wells California hasn't kind of Californians. To cost. The -- -- you know what I -- similar California's is a nice place to visit there really is it's a tough place to live. And make a living the same kisses school like good stuff but as a tourist pretty darn nice. I I went to our office and more -- as the week before this and hung out the San Diego and it was really great against pro golf. One of my favorite places in the world America roof. Look to exploit you and you've been to the new office oh and did so cool town had -- download -- -- saw the picture yeah your social media that's very that's very at a and a threat. Well the most people ignore me and -- The console the president's. There's some good schools out -- to. There are some good -- C San Diego university San -- universities in royal children where Iowa. I. Heard that one as you heard Alan. -- we'll -- -- they do in -- -- -- we're really excited to have you folks with us today we're not allowed 529 plans. Which almost everybody asked me about and people seem to have some clear not so clear notions about what they aren't what they can do for -- -- -- about -- -- where we're gonna throw that around among us here the first restart Buffalo News item. Well I always noting this week. Thanks to -- there. The numbers are a little bit a little old but I was noting that the the three year return now the emerging markets. This is -- march 31 is eight point 35%. How over the three years average compound -- again Osama knows that -- exceed the or return home. That's not that's not -- -- you -- in the S&P 500 is exceed fifteen points 73 does that mean I should sell my emerging markets fund and by S&P. Interestingly. -- Or voted to investors actually pulled out last you may you may remember last June when there was a bit of turmoil in the emerging markets in part -- we do because our fed said they were gonna. A stop the quantitative easing which means equipment are interest rates may be were gonna go up and now it's like 'cause. Some of the emerging market countries sexy raise their interest rates and I was like cause lack of capital all I kind of stuff. So there was about 32 billion dollars worth. The money coming out of those emerging markets but since then the last eleven months 221. Billion dollars gone back into those markets and even those markets went down -- 15% glanced last summer -- -- -- -- person has come back and then some and so some -- investors have actually on. All of -- -- and actually buying when things are low -- -- -- to that is the trick yeah. Although I guess he could have jumped out right for went down and letting go down -- and then jump back in you know when there's another guy on the radio apparently continue to -- the red light goes off -- -- I've got a question that's been just -- that means I'll -- long time. If emerging market goes down is it still emerging and edge and it is a conundrum isn't an -- submerging the yeah. So how her job markets and with the merger are -- I think we need to have a leveraged index first emerging markets. He might be right there is 9% of the total market capitalization of the world is emerging markets 52% of all the population is an emerging markets now so global opportunity there I would think. That you it is astounding to think about it. The fact that in the Third World they still mostly don't have cars they still mostly don't have air conditioners they mostly don't have all the things that we take for granted Iran. The basic standard of living here. And don't get it. You know there muted than those parts of the world are continuing to develop as a -- be optimistic that they I think some of them have social phones that ring do that a little bill when he. That was Nelson read from our San Diego does -- -- -- -- emerging markets there an important part of a diversified portfolio. And the thing as a a lot of investments that I see -- people Suleiman emerging markets that when you look at their emerging markets allocation while attempts large cap emerging markets you know with it and you don't see a lot of us what you wanna be allocated to their small and value as well so that's a good thing to look at it in your portfolio -- nowadays -- not too many years ago you couldn't help small emerging -- they just just couldn't get that. And you portfolio ninety and emerging small value of that and I says his say people good luck in the -- yeah. They I got me a little piece of news from embedded news -- at this. University systems of their the United States I'd like to shear zone where all you all this other news hounds the did you know this came out and. Wall Street Journal reports that 44%. Of college students between the ages of sixteen and 24 Tom held down either part time or full time work during 2013 that's down from the peak of 56 so. Kids' artwork and for -- them all right all their -- -- all their money from -- -- great college costs are rising over the last decade public four year university has arisen that tuition for public four year university has risen 37%. To 181400. Dollars in private university customers in 24% how we're gonna pay for that exactly. That begs the question kids aren't working as much color to a -- what will lose the five point nine created was that. Bush won. Maybe maybe it is a long time ago I would -- -- one -- what got the conversation starlets. Last week we talked Mario's we have this -- and Carla Collins she was she has she says she currently has eight grandchildren and achieve great grandchildren. And they're all under ecology and she wanted to she should know. When by trying to win -- each of them this -- one account for all of them and make distributions as necessary being that and that was so that's a sort of got us on this would be a good idea to have her. -- show the door to answer that question right after the break so astonished to see on the -- Even though only paying dad and I'm. Between ramping government spending and uncertainty about our economic future most Texans are having doubts about their own financial future. Are you ready to take a serious look at your financial goals using the experience the only certified financial planner practitioner is it worth point. Would you like a second opinion under current advisor who may be selling you investments and insurance for commission's -- -- when he radioed I've come to make an appointment or call 8885447. 760. That's worth point radio dot com 8885447768. Welcome back to work quite well watch giving you an unbiased people under the hood of wealth management. Investment and financial planning. Once again here's Christopher advanced life. Welcome back off then we are talking 539 plans today. And Scott was just treating a question from where is this a blister from. Kyle and Kyle. Marsha Marsha from Kyle. Wanted to know she has how many grandchildren. -- -- Grandchildren and two great -- because like ten total Scioscia has ten potential beneficiaries -- -- -- just a lot of money you know and we don't know him make a big -- hopefully. College education those ten kids. Should she set up one giant one or eight little ones. Right but typically when do one so they don't have the -- -- ten accounts antenna piece of -- worked and then you have. There's. Typically maintenance fees and each one and all kind of self. And so generally peoples of the ideas why why do -- just one account and I make this the distributions as necessary. And you know play and that's like -- I setup and Ira to safer. My first year retirement and then another hour for my second year Virginia and now this is just sick it's again it's only good thoughts. And but typically doesn't work very well this number well ways another reasons why are you limited in the amount of contributions. Yes you are there is can you look through to all eight of them and contribute to do one as much as you could have contributed to eight or ten. -- -- -- -- I'm not sure exactly I know what -- -- -- beyond -- so much in and night and that might be no limitation. -- you've gone whether I was going with -- -- is purposely nearly so well in this you know there's there might be if I don't bring enough there's. In Maine the -- is he might be -- dollars a year and then I tell them something by foreign policy remain is these. Well number one and allow animals say he knew what don't have me Nancy's number one number twos if you wouldn't end so much per month. Or so much per year they waive its. And and if you have so much in their in total well wave that so there's a lot times there is not the anyways let -- or is that sometimes on non non issue. In the the other part is you have to credential we're different ages. So when you're putting the investment in there you know -- get one investment allocation DA in a two year old and eight year old an eleven year old just gets messy in terms of the allegation. So that becomes a big trouble we hear -- were probably help you come up with a one allocation to suit over. Well McCain but what it is like of their retirement income stream yen where you do pick an allocation to pay a stream overtime yeah heavily he can be killed difficult and that that becomes old bit of an issue I think. And and nothing becomes a what happens if the did you pass away as list comptroller of the count. And the person who is the -- takes over you. Those -- really know what your intentions were. And so you lose you lose some control over. What you had originally thought because they take control over those accounts and then they have control they can change the beneficiaries of the -- -- that account and indeed it becomes a little messy -- bank and so it's. Nothing you can do it the other way I generally don't recommend that you make a master account with Alan. So let's go back a little bit blisters were talking about a 529 plans if you didn't know 51 in my plans are week to. Basically you can be an owner you can and invest in and relatives. Can invest in investment accounts to pay for a ground tuition. And didn't tax benefits -- tax benefits yeah. It's considered a gift -- -- rest basically in 1996 put codified. 529 plans so. You gift. TU a 529 plan and you can actually -- five years is that gifting and there's you get that gift tax exclusion for the year. But you gotta watch out. Because there are some bumps you know generation skipping and estate issues on that but that's kind of another issue but. Political Livan mentioned the primary text and yes the tax benefit number one it gross tax free. Which is very cool. And then when it's used for qualified. Education. You pull up the money that not only is the principle that you used extreme but the big gains spot on and on that investment. Are our tax free as well so I'm -- I -- is that I usually win the capital gains tax was 15% -- Texas with no state income tax snow state capital gains tax. I was not excited about these could save you 15% -- in such a big deal but now that the tax is gone not a point to in some cases almost 25%. And for people out of state you know appearing California and your -- 35% capital gains tax and I think he start to look really attractive. Right yeah -- did it this a good plane in. And you can change the beneficiary to some people worried some people worry that they're you know have been too much in there and then and then they. -- the -- does go to college turn those into the services so much and doesn't need the money we can always change the beneficiary. And I have always never pass I've just -- don't. You know when we do the planning a trip back into what member -- and and ultimately in the paper. For tuition and room and board elect and most of it is. Don't try to bully on that a 100% -- MAB 775%. -- some wiggle room there that you may -- -- take some money out of pocket or are yet to them otherwise but don't try to don't try to get to under precinct and they may get some. Tuition discounts like color scholarship or they'll do work study or something like that so don't don't try to name a 100%. Mean and need. What is the Max funding. Let's -- into what 141000 dollars a year yet and in the you can do on in one year you can do with the five years of that does accelerated gifting and much can you put in it wants them. You can exceed the gifting them. You can exceed the five times 141000. I think it's the flatness of binding but five years and wants I think it's -- -- -- the six the announcement OK because there are maximum. That it can grow to. Now there's there's no limit now know although I had won Iowa client to we we're trying to transfer. He's got quite a substantial amount in there and and the the state would not allowing the transfer has the full balance that he has in there. It was interesting they said. Will launch transfer and Texas a couple 100000 dollars an account. And they said the SEC more than that they won't -- -- -- -- Partial what are the other issues do what we want other concerns you might have about the uses the fees and expenses and so it every state has one of these right now. There's -- state administered all fifty states have type two. -- earned it yet generally in the there's certain state tax benefits. For for that. And it puritan state that really does have. Deductibility for the contribution or attacks you don't really have to worry about it indexes and as a matter -- we don't listing context of -- there's no -- -- -- and this is a good question because we think about this. -- You gotta think about whether or not that deductibility. On the contributions at the state level. Actually makes up for the investments and the costs of the the -- itself ready and awaited tax gonna Padilla -- the potentially not a great investment yes -- for example I'm unfamiliar with they West Virginia. Plan that uses dimensional funds and every client that I've looked at that's looked around that they love that plan because of the investments in the cost of not. That they're not eliminate the attacks -- -- to -- so if you're if you're -- -- -- like Texas you really don't need to look at the tax benefits of any of the statements correct you're looking at the investment options of fees and expenses. He's a -- of administration and you know can you download the data into your software and manager and so -- -- attacks that it's not huge because that's the state income tax -- times union -- 101000 dollars and -- temple in your state income tax rate -- -- 6% what do you say 600 dollars and that's not yet mainly the federal tax on him. Tax free -- and distribution rate options now. All right we'll take a break now and we come back -- talk about some of the estate planning benefits of using five tornado. Okay. Then. Between -- government spending and uncertainty about our economic future most Texans are having doubts about their own financial future are you ready to take a serious look at your financial goals using the experience the only certified financial planner practitioner is it worth point. Would you like a second opinion on your current advisor who may be selling you investments and insurance for commission's -- worth when he radioed I've come to make an appointment or call 8885447. 760. That's worth -- point radio dot com 8885447760. Welcome back to work quite well watch giving you an unbiased people under the hood of wealth management. Investment and financial planning. Once again here's Christopher advanced life. Ladies and gentlemen we are talking about 529 plans here today. Before I forget. Let me tell you that you can find is it -- point radio dot com. You can find us on FaceBook Twitter and Linkedin if you search for work point with a -- All one word. And we love Q have you like us. Join us the setter. And -- to stay in touch it that way you can also post your questions there. And we'd love to hear from you and who read your questions on the air -- If you. Post them there. So it. We're in our discussion about five to nine plans and some -- to me which was -- the accelerating gifting. One of the most common use is I've ever had for 529 plans specially since I didn't used to be such a fan because the capital gains tax was so low. Was the accelerated -- So. Graham on grandpa have. And a state that would be subject to estate tax. And the first thing. -- we usually try and do have -- -- grandpa don't wanna pay the estate and who want their state -- as we begin trying to reduce the value of the state. The estate in the eyes of the IRS and one thing that. 529 plans allow you to do is accelerate. Five years of gifting into one year. So normally you know you can give your daughter Sally. 141000 dollars in one year and not. Use up any of -- what we call a gift tax so there's actually attacks just like there's an estate tax on the things you give people during your life. But there's an exemption which is 141000 dollar per person per year. So -- Graham Mungro empire had two kids they could each give 28000. Dollars to each kit and right but. Let's say grandma and grandpa are worth a lot of money 101000020 million dollars. And they really are gonna face a tremendous estate tax. What would Graham -- -- can do is do five years of gifting which is 70000. Dollars per child. So they can give a 140000. Dollars per child I do these numbers rights contract that's look at me like don't blow it benefit if I could have been gone for a really cracked up and I know. California doesn't weird things to your brain and a half and so you could get 280000. Dollars out of these states right then and there. And then that begins to grow. Outside of the estate where -- rather than inside this which is a pretty powerful tool and you know I've I've had situations where grandma grandpa have. You know eight or ten grand kids. And so they're doubling down on the the 140000. Per grand -- they're they're chipping out millions. In year one and reducing the value that a state and -- Is some happy parents do. This is suddenly -- they're not saving for college anymore. Yeah it did is really low level of financial plan that is really powerful that way and some great advantages -- many great things to his. You can. I just opened fire -- and I plant for my kids less or more little worn little Morgan. -- coming about for myself a lot of my name my son doesn't have a son. You did look at the congratulations Christopher of course had -- -- different Morgan who have a junior political. Forever known as little somebody hit. I mean the communities don't or really old and shriveled up and he's like looking down on -- been there will be little old men. -- -- coping as you open this account for look Chris for when it comes around it and grandma. Christopher or grammar -- and can contribute seeking contribute. -- Kristofferson can contribute didn't. I'm so that's the really cool thing another thing like I'm going back to this estate planning issue were you -- -- agreement could be you do have to watch out. -- it does affect all this generation transfer. That generation skipping transfer taxed so you can't wanna planned that out with Steve -- attorney as well. Blow another cool thing is unified Korean -- plan. Let me just tell you folks what that means. It will. The IRS is concerned if all if one generations say grandpa skips the kids and begins gifting to the grandkids because. Those assets are gonna have a chance to grow. Over the life of a really young person and there are the IRS is afraid they're not gonna get their tax money. So they have a special tax. Just for the situation called generation skipping tax. And Morgan rightly says you should check with your estate planning attorney and CPA to make sure that you don't trigger it. When you do this accelerated fifty and it really makes you document your communications with the IRS and hold on of that stuff 'cause it did those email never -- -- it just may disappear. I don't play a ball so I don't know. But it's funny they never they never lost all the information about alleged acts. Because I've heard him finally you know tax I don't know it's funny how there -- some of the things -- go on with what you're so I just want to wrap the. -- up with. Open up a plan it's great family members extended -- can contribute. Another cool thing is have you heard of you promise. No well it's basically it's this network of retailers and online store to -- get a credit card. Every purchase that is made by you or what are your relatives. A -- percentage to 3% of that person purchased. Goes in. Three money to your kids' education plan bird funding so. You can submit -- money buying stuff and could you funneled in into our turnaround plan. It it goes directly to the 529 plan so while yes so website. Well if you for example -- you promise you promised dot com to pro stock and had actually links up with those West Virginia DE FE 529 plans -- album -- for got a -- -- -- and yet you just to -- to all your friends and to. Saying I do fund my kids every diaper that you buying -- -- from Youkilis and this this is great you go to the mall you spend your money back and I can go to college and an element in half again let that happen after the so -- got. But will put that you promise on our website is -- resources so. That's an excellent I think the other thing is that that was. It was a good question for Marcia and so some -- to anyone else has a question that would. Prompt us to for this show idea of these. I go to our website and go door -- point radio dot com there yelling just. Is gonna say get a question will answer it directly to you he is who will then and I answered Marcia directly so. But it it was a good idea press -- of primary on answered her would you love to get feedback him from your listeners and because we cannot. Fortified -- show content. With the information that that answers your question yeah. So what else about -- trying to -- I think you yet that did they're they're the pros -- and as you said that things have changed in less than the other thing that and and and -- thing on earlier at bank is that do you get a get a pay attention to like all the other -- investment account should get a pay attention is on a set and forget early because of the markets change and I had a client back into those neat. That they they knew they were very aggressive and they weren't. And do it and listening plantations say they they became a client that pretend that she had lost a lot of money because she wanted to -- abandoned the fight to a nine plan. Because she lost almost money in the in the in the kid was still like ten years old. And but you know she was just very aggressive and she had lost all money and she just wasn't paying attention. You know would. Five tour and -- player you've heard of life cycle. In funds and this is the 1 area where I am a fan. Of doing what they call you yours too. College. End it where the they have these portfolios that automatically manage themselves may become. More conservative. So when you get to college or close to college you're basically all fixed income. Which is really where you wanna be because if you get to that point you made all they gain over the last fifteen years. And it's -- you don't want to housed at soccer yeah -- so this is the one kind of financial area where I am a fan of these automatically kind of shifting purple is they go from but what. What if you can get a scholarship. In unit redirect the money to grandkids later then you can just. Get online and make the change in seeing him get. Fifteen years now to call unintended beneficiary I was I was prompting -- conversation -- advisor Dennis Cooper Missouri political -- base -- -- -- space to portfolios within those spike to a -- plans at the yeah and and really that's not quite -- -- they say years to college so. You're right it's essentially a maps out as -- everybody I really liked those and I can be thirty and -- Start there you go Alex you know like go -- it then so you -- grandpa got his college degree in his seventies. While -- was that it was not show up at school the student rush street. I'm -- my dorm room that bad guy at the rest streets of Austin all right doesn't. Anybody have any last thoughts because we're gonna sign up could have any bad dancer I don't think it's good to be back -- and -- we'll see you next week. And have a great.