Discussing the Fed and market reaction, as well as 529 Plan advantages
June 28, 2022
Welcome to Wealth Enhancement & Preservation’s Market Minute, where we get to update you on everything that happened in the financial markets this week. My name is Cody Moore, and I am a Wealth Advisor at Wealth E&P’s Alpharetta, Georgia office.
Last week, we had a great week in the markets. The Fed came out on Wednesday with some comments relaying that they're going to be more hawkish or aggressive towards combatting inflation, even at the risk of causing a recession. As odd as it sounds, it was actually great news to markets since inflation is obviously the top concern right now. The S&P 500 actually dropped back out of bear market territory and was up about 6% for the week, so that is great news there.
As we near August and kids are going back to college or going for the first time, it is a great time to talk about 529 Plans. If your child got a scholarship, such as the HOPE Scholarship in Georgia or your respective state, and if you’re not going to end up using your entire 529 Plan, you can actually change the beneficiary to another child. Changing the beneficiary of the 529 Plan allows for you to use those funds for a second or third child attending college later on if the first child doesn't need that money. Another advantage of 529 Plans not too widely known is that you can actually use the funds and tax advantages for a K-12 school or private school tuition as well.
If you have any other questions on this or anything else, if you want a risk profile, or if you would like a retirement projection, please feel free to reach out or visit www.wealthep.com. Otherwise, stay tuned for our Market Minute next week!
| Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing. |
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
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