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A Divorced Mom’s Guide To Saving For Their Kid’s College

529

 

Are a you a single mom who puts the education of your children above your own retirement?

If so, you’re not alone. In a study referenced by Forbes, it was found that half of all single moms put their child’s education as their long-term financial priority, even above saving for their own retirement.

So, a lot of questions arise from the findings of single moms and their financial priorities. Why are divorced moms putting their kids’ college savings first when they are arguably a child’s priority?

Are there options for single moms that allow them to save for retirement and secure their children’s educational future?

What do most financial advisors recommend?

A Divorced Mom’s Guide To Saving For Their Kid’s College

Let’s dive in.

Divorced Moms Who Pay for Their Child’s Education Often Do So Out of Guilt

The above referenced study found that single parents are more likely to feel an obligation to help their adult children financially than traditional parents.

Often, single mom’s feel guilty about the divorce, not being able to spend as much time with their kids as they’d like (due to balancing careers), and because they want to give their child one less thing to think about in their future as they feel they have scarred them through the divorce.

So, what are the options for single moms to explore for a solid retirement and college savings balance?

Balancing Retirement and Your Kid’s College Fund

Most financial advisors would recommend that your retirement planning should come before that of your child. A couple of key reasons for this include the fact that retirement does not benefit from any federal loans whereas there are several ways to finance college. Further, tax breaks for investments are more generous than those for college savings, but there are ways to impactfully save for both.

What are the Best Options for College Savings?

Many single moms begin to consider their IRAs when thinking of ways to strategically pay for the education of their children. Turns out there is a much better way to save for both, and the college route generally involves what is called a 529 plan.

529 plans are qualified tuition plans and are tax-advantaged savings plans specifically designed for education-based saving. You have the option of two plans, depending on your ideal situation.

The first is prepaid tuition plans. These allow account holders to buy credits at participating educational institutions for the child’s future tuition.

The second college savings plan allows account holders to open an investment account that operates more like a traditional interest-bearing account, except directly aimed at educational savings.

Some of the benefits of a 529 plan include:

  • No dollar limit on contributions
  • You can use 529 plans to pay for elementary, middle, high school, or college
  • The ability to withdrawal the amount of any earned scholarships penalty-free
  • Protection from creditors in the event of a civil lawsuit, bankruptcy, etc.

Are there any negatives of a 529 for college savings?

There are some negatives to 529 plans. For starters, you can’t take income tax deductions for contributions, meaning you must pay federal taxes on the funds before adding them to the account. Another negative that is similar to many federal retirement plans is that you will be penalized if you withdrawal from the 529 account and don’t use the money for qualified education-based expenses.

What if My Child is Already College Age and I Don’t Have Savings?

While most financial planners would never recommend planning to use an IRA for college, there are some scenarios where it may be the only option. For example, if the divorced parent has not had time to contribute to a 529 plan, their sole option for helping their child may be to use their IRA.

The good news is that there are exceptions for IRA deductions specifically used for education expenses where no penalties will be incurred. This means you may be able to withdraw IRA earnings penalty-free, but not tax-free when you use the money for college.

This option, while not recommended, is ideal for single moms who have not planned on funding their retirement and saving for college.

In the perfect situation, a divorced mom will have multiple accounts set up to contribute to both their own retirement as well as the education of their children.

The post A Divorced Mom’s Guide To Saving For Their Kid’s College appeared first on Divorced Moms.

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Divorce Attorney Elise Mitchell's Private Files Document Blow Jobs to Judges

Judge Zayner Links Court to College Cheating Scandal


Stanford University Law School
was hoping this video would not be found. It was.

This video  connects Judge Zayner of the Santa Clara County Superior Court with the recent college cheating scandal and implicates him in a criminal medical fraud scam involving Stanford University hospitals. 

A criminal investigation is now underway to see if Zayner used his power and position as an elected judge to rig probate and divorce cases as well as civil cases involving Medicare Fraud and antitrust activity in the area’s medical industry. 

Zayner’s wife, Dawn Neisser,  was recently overheard talking about this 2012 video and how she and her husband used to skinny dip and do drugs with others on the campus in a manner that would be considered highly embarrassing to a sitting judge.  Zayner’s involvement in the pharmaceutical industry and Stanford Healthcare is also drawing attention following the exposure of the College Cheating  Scandal, where Zayner repeatedly violated the law and refused to recuse himself in cases where he was trying to rig outcomes to benefit is almamater. 

A review of Zayner’s family law and probate cases show Zayner, through his associations with the Inns of Court,  Judge Zayner provided favors and favorable rulings to lawyers with a Stanford degree. In  the county’s divorce, probate and conservatorships, Zayner allowed court fiduciaries and private judges to take over money management of the elderly and disabled in a manner that resulted in the conversion of estates to Zayner’s closest Stanford University buddies. 

An investigative  report by the San Jose Mercury News
, highlighted some of the worst cases, but what Zayner did in the county’s divorce cases may have been worse. 

Known for his stoic bench conduct, Zayner may have not been the legal mind he wanted the public to believe. A core group of local judges, lawyers, Stanford professors  tapped Zayner years ago. His political rise in the courts appears to directly correlate to family and probate cases where “winners” became big donors to Stanford’s hefty endowment., or Stanford Hospital. 

Former clerks and interns secretly kept  files of Zayner’s contacts. Those contacts are now being cross-referenced with others  indicted in the college cheating scandal, as Zayner’s family law and civil  cases are getting a new look.  

The investigation has also brought scrutiny to Judge Lori Pegg, the county’s family court presiding judge and former County Counsel for Santa Clara County. Pegg and Zayner have reportedly been working in concert to cover up scandalous child support abuses, and protect Stanford University professors  who were charged with child abuse and domestic violence in their divorce cases. Worse Lori Pegg and Theodore Zayner appear to have been working to toss out civil cases involving police misconduct, in order to save the county billons in embarrassing lawsuits. 

Zayner was also the subject of a recall effort in the summer of 2016, but a secret deal with Stanford Professor Michele Dauber and Santa Clara County District Attorney Jeff Rosen saw that recall foiled and Persky recalled instead. 

All those dots are now being connected and Judge Zayner, known for favorable rulings for  Stanford lawyers, and in cases where Stanford alum will benefit, as Zayner remained  silent on judges engaging in misconduct may get a new look. 

The innocent video produced by a sitting Judge’s wife, may not be as innocent as Judge Zayner would like it to be as a core group of disgruntled parents and students set out to do the investigation the courts refuse to do. 

If you had judge Zayner in a probate, divorce or conservatorship case- email us at: CalJohnQPublic@gmail.com

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