A college education comes with a big price tag. If you’re considering college for your child or even for yourself, it’s prudent to set aside money to cover the costs. Here’s what you need to know to use a 529 plan to maximize your college savings.

• A 529 plan permits individuals to save for college while minimizing the taxes on their investments. The number 529 actually comes from the IRS tax code where the tax advantages of the plan get spelled out. After investing in a 529 plan, you can withdraw the money for qualified education expenses without paying taxes on any gains.
• A qualified education expense is not limited to tuition. You can pay for fees, books and supplies, even room and board under certain conditions. Because state governments administer the plans, some states offer deductions or credits on your state income tax return for making a contribution to a 529 plan.
• While you can participate in another state’s 529 plan, remember that tax advantages for contributions may only be available in your home state. Currently there is no deduction or credit on a federal tax return at the time of contribution.
• A 529 plan can be transferred between beneficiaries, but it cannot be used by more than one beneficiary at a time. The transfer feature can be useful because unqualified withdrawals are both taxed at regular income rates and penalized by 10%. If you have more than one child, you can effectively roll any leftover funds to a younger sibling.
• Some states offer a prepaid tuition option as their 529 plan. A prepaid plan allows you to lock in today’s tuition costs, but it may restrict you to in-state schools. Before investing in a prepaid plan, try to make sure that the included options will cover the educational needs of the beneficiary.

Parents want to give their children every advantage, and higher education is a valuable benefit. The tax savings of a 529 plan can help stretch the dollars you have for a college education. Higher education and lower taxes, what a great combination! 

Hundreds of years ago, Christopher Marlowe noted “Money can’t buy love, but it improves your bargaining position.” Money may not be able to buy love, but it certainly tries its hardest on Valentine’s Day. Spending on Valentine’s Day gifts approaches $20 billion dollars annually.   

Sweets for the sweet.

Chocolate is a popular gift on Valentine’s Day. Candies are included in nearly half of all Valentine’s gifts. That amounts to over 35 million packages of chocolate that cost over a billion dollars! In 2008, Thornton’s produced the largest ever box of chocolates, a massive 3,725 pounds. Retail prices of much smaller assortments suggest the record-setting box might sell for $52,150 (if it could go on a store shelf).

A rose by any other name...

Nearly three-quarters of male gift givers choose flowers for their sweethearts. A bouquet of a dozen red roses is the most common arrangement. There is a definite price bump for Valentine’s Day. This classic choice runs about $75 the week of Valentine’s Day, about 20% higher than the rest of the year. The Guinness Book of World Records reports the largest bouquet of roses contained over 150,000 blooms. Priced per dozen, that amounts to $937,500. Ouch!

Diamonds are a girl’s best friend.

Estimated spending on jewelry gifts goes over $4 billion dollars. Many women hope for a Valentine’s Day proposal, and on average, 220,000 women will get their wish. In the United States, the average engagement ring costs a bit more than $6,000 and weighs just over a carat. The largest diamond of gem quality was the Cullinan diamond. It weighed 3106 carats; that’s almost a pound and a half of diamond. 

Don’t be just another statistic this Valentine’s Day. Celebrate with a thoughtful gift or a memorable experience, even if it’s for just you. Actually, about 15% of women will send themselves flowers for the big day. Regardless of your relationship status, here’s to a Happy Valentine’s Day.

We often plunge into the New Year with great intentions, but fast-forward a few weeks, and we’re already losing steam on our resolutions. If your New Year’s resolution needs a little pick me up, read on for some suggestions to increase your chance of success.

Buddy up to give your motivation a boost.

If you’re struggling, you might have a friend who is feeling the same way. Discuss your goals, and find a way to be accountable to each other. It’s often easier to stick with your plan when you know someone will be checking up on your results. In addition, getting support and positive feedback will strengthen your resolve.   

Changing habits takes time.

Don't get discouraged if you don't see results immediately. Find a way to mark your progress visually. If you’re trying to replace a bad habit with a good habit, try recording the number of days that you have practiced your new habit in a way you can see. You can check off days on a calendar, or create a countdown of sticky notes on your wall. Seeing how far you have come will help you resist the temptation to backslide.

Break your big goal into smaller ones.

If you find yourself fighting too hard to reach your target, you might need to aim for closer targets first. Think small and specific instead of big and vague. You can create dramatic changes if you have a step-by-step plan. To replace a vague goal like “I want to lose weight,” decide how you will measure your progress, such as pounds lost, inches lost, or a different clothing size. Then set up the actions you will need to take to meet your goal. For example, your first action might be to cut a high-calorie treat from your diet, and a second action might be to add exercise three times per week. Add one action step at a time instead of doing everything at once. 

Every now and again you will have an off-day where you feel like you aren’t making headway. Forgive yourself and don’t give up. Reassess your goals, review your progress, and give it another try the next day. A positive attitude and persistence will see you through to the end.

The outdoor temperature is dropping, and so is your motivation to exercise. Who wants to go outdoors for a walk or a bike ride in this weather? Don’t let your healthy habits get frozen out by the cold. Adapt to the changing seasons and find new ways to keep fit.

Bundle up!

Brave the cold, and add winter sports to your fitness regimen. Downhill and cross-country skiing both burn calories and challenge your muscles. Locate an ice-skating rink. Skating requires strength and coordination, plus it’s a great aerobic exercise. An all-out snowball fight with the kids is a fun way to get the whole family playing.

Choose an indoor exercise location.

You might have to change up your routine a little, but you can exercise indoors. Many shopping malls open their doors early to walkers. Count your laps or run a stopwatch to estimate your total distance. Ask around to find a gym for the winter months. You’ll want a gym that offers month-to-month rates, so you can stop when the weather gets nicer. If nothing else, choose an exercise DVD, and work out in the comfort of your own living room.

Buddy up with a friend.

If you’re struggling to find your motivation, chances are someone else needs a little help too. Commit to each other for regular exercise outings together. Meeting up with a friend provides a little extra push to lace up your shoes and get out the door.

Between the hustle of the holidays and the icy temps outside, exercise slides by the wayside. You can overcome the urge to slack off by getting support from your friends and substituting winter or indoor activities for your usual routine. Have a fun and fit winter!

It's tax time! The Internal Revenue Service plans to open the 2014 filing season on January 31, 2014. The delayed opening date is a result of the significant delays the IRS experienced in October following the 16-day federal government closure.

So, what's new for your 2013 return? Keep reading for highlights on some of the changes.

• Additional Medicare Tax.Beginning in 2013, a 0.9% Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than:
  • $125,000 if married filing separately,
  • $250,000 if married filing jointly, or
  • $200,000 for any other filing status.
• Change in tax rates. The highest tax rate is now 39.6%.
• Tax rate on net capital gain and qualified dividends. The maximum tax rate of 15% on net capital gain and qualified dividends has increased to 20% for some taxpayers.
• Medical and dental expenses. You can deduct only the part of your medical and dental expenses that is more than 10% of your adjusted gross income (7.5% if you are age 65 or older).
• Personal exemption amount increased for certain taxpayers. Your personal exemption is increased to $3,900. But the amount is reduced if your adjusted gross income is over certain limits based on your filing status.
• Limit on itemized deductions. You may not be able to deduct all of your itemized deductions if your adjusted gross income is over certain limits based on your filing status.
• Home office deduction simplified method. If you can take a home office deduction, you may be able to use a simplified method to figure it.
• Standard mileage rates. The 2013 rate for business use of your car is increased to 56½ cents a mile. The 2013 rate for use of your car to get medical care is increased to 24 cents a mile. The 2013 rate for use of your car to move is increased to 24 cents a mile.

Be sure to contact your tax professional for more information. Don't wait till the last minute!

When talking nutrition, you hear about good fats and bad fats. Take a moment to learn about the role of fat in nourishing the body, and how you can get more health-boosting fats in your diet while cutting back on the dangerous fats.

A healthy diet is not a fat-free diet. Your body needs a modest amount of fat to properly process certain vitamins and minerals. Fat is the most calorie dense of the macronutrients (carbohydrates and proteins are the others), so it provides energy and helps you feel full longer. The USDA recommends consuming 20-35% of your total calories as fat, but encourages restricting saturated fats and Trans fats; the “bad fats.”

Because of their physical nature, saturated fats and Trans fats contribute to the buildup of cholesterol in your blood putting you at risk for major health problems. Minimize the amount of saturated fat you eat to less than 10% of your total calories. Dairy products and beef contribute the most saturated fat in the average diet. Try low-fat milk and cut back on red meat. Some Trans fats occur naturally in meat, but the worst culprit is the hydrogenated or partially hydrogenated oils used in processed foods like cookies, cakes, and other ready-made baked goods. Try to eliminate these Trans fats entirely.

So where can you look for the fats you should be eating? Monounsaturated fats and polyunsaturated fats are the “right” kind. Try snacking on lightly salted nuts and seeds instead of a bag of chips. Add some avocado to your next meal. Soybean oil, soy milk, and tofu are all classified as polyunsaturated. Salmon and tuna provide a special type of polyunsaturated fat called omega-3 which appears to play a role in supporting brain health and reducing serious health conditions including cancer.

The bottom line is - don’t fear the fat. Use your smarts to restrict unhealthy fats and choose the right amount of healthy fat for your body.