Another Reason to Open a Roth IRA: Paying for College

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I was reading the business section of the LA Times when I came across this nugget:

Because you make Roth IRA contributions with after-tax dollars, you can withdraw them at any time without taxes or penalties, just like 529 plans.

I knew that. I’ve done that, but it never occurred to me to contribute with the intention of using that money for college costs. Do you know what that nugget means? It means that:

  • Instead of opening two accounts and having to schedule two contributions, you can open one.
  • You can take out the money you put in, not the interest that you’ve earned, to pay for college costs after letting it grow for years and years.
  • If you don’t end up using it for college expenses you can let it continue to grow until retirement.
  • If you do want to use the money for college costs, the money in your Roth IRA with not count against your child for financial aid like a 529 plan would.

That is revolutionary. You can contribute, let the money grow, it won’t count against your kid when you apply for financial aid (FAFSA, scholarships, loans, etc.), and you can leave it there to continue to grow until you need it for retirement. The absolute best part? You can leave the funds left in the account after you die to your spouse OR any beneficiary that you designate and that money can continue to grow.

There seems to be no downside to opening a Roth IRA.

 

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Virtual Book Launch June 8th

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As you all know, I am ecstatic about the printing of the 2nd edition of 10 Things College Students Need to Know about Money! I’m so excited that for the first time ever I’m hosting a virtual book launch on Facebook. What is a virtual book launch you ask? Good question.  *wink*

A virtual book launch is an opportunity for you to ask me about the book, win some cool gifts and score an AMAZING discount on the book. I’m so excited.

Sign up to receive my emails and get another gift.

Subscribe to our mailing list

See you Wednesday, June 8th between 6:30pm and 8:30pm Pacific Standard Time.

Graduating? A few financial tips.

bookphotoCollegeKidsShay Olivarria, financial education speaker and the author of 10 Things College Students Need to Know About Money 2nd edition, was included in the an article geared towards sharing a few tips for students that graduating this year. Nine women were included. Shay’s tips:

“Keep your credit scores high by taking a look at your credit reports for free at AnnualCreditReport.com (the only place you can get them for free). [Also] learn about the five parts of a credit score and leverage your scores to save money (and deposit fees on utilities) on car loans and home loans in the upcoming years.”

“You created a plan to graduate from college and you worked that plan to bring graduation to fruition. You can do the exact same thing with personal finances. Make a plan and execute that plan. Welcome to adulthood.”

Read the rest of the advice by visiting Student Loan Hero.

 

Shay Olivarria is the most dynamic financial education speaker working today. She speaks at high schools, colleges, and companies across the country. She has written three books on personal finance, including Amazon Best Seller “Money Matters: The Get It Done in 1 Minute Workbook”. Shay has been quoted on Bankrate.com, FoxBusiness.com, NBC Latino and The Credit Union Times, among others. To schedule Shay to speak at your event visit www.BiggerThanYourBlock.com. 

 

 

A Young Mother’s Dream Scholarship

Young-Mothers-Dream

I just saw this message on Facebook:

If you know of any high school seniors (entering their Senior year this Fall) that would be a candidate for the scholarship program POSSE, please please send an email to geneva@youngmothersdream.org!Today is the FINAL day for submissions Great opportunity for a full 4-year college scholarship… Please share & recommend! Thank you

The scholarship is from an organization call A Young Mother’s Dream. Get your application in today.

WEBINAR: Using Your Financial Aid Check to Build Wealth

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The second free webinar in the series (check out the first one here) is Using Your Financial Aid Check to Build Wealth. In this dynamic webinar you’ll learn how to leverage the money you have to build wealth. We’ll talk about student loans, checking accounts and investing for retirement using compound interest. You’ll learn how to turn $100 from your financial aid into $36k. This webinar is free, but there are only 25 spaces.

REGISTER HERE

 

Update:

In case you missed the live event, you can watch the replay here https://www.anymeeting.com/WebConference-beta/RecordingDefault.aspx?c_psrid=EF52D9848549

 

Teen Dating Violence Awareness Poster Contest

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February is National Teen Dating Violence Awareness Month. To get the word out about this very serious subject, the domestic violence help center, A Better Way in Victorville, CA, is hosting it’s second annual poster contest!

The Black Voice News says:

The poster contest is open to all high school students. The theme is “Teen Dating Violence”. The Grand Prize is $300, 2nd place is $200 and 3rd place is $100. All entries must be received by January 31, 2013.

All of the contest forms and guidelines are available online. For more information call A Better Way at (760) 955-8010.

DomesticViolenceTeenGirl

A bit about teen dating violence from A Better Way:

NOW FOR SOME STATS…
Dating Violence iscontrolling, abusive, and aggressive behaviourin a “romantic” relationship. It occurs in both heterosexual AND homosexual relationships and can includeVERBAL,EMOTIONAL, PHYSICAL OR SEXUAL ABUSE, OR A COMBINATION OF THESE BEHAVIOURS.
ONE OF FIVE TEENS IN A SERIOUS RELATIONSHIP REPORTS HAVING BEEN HIT, SLAPPED, OR PUSHED BY A PARTNER
YOUNG WOMEN, AGES 16-24, EXPERIENCE THE HIGHEST RATES OF RELATIONSHIP VIOLENCE
ROUGHLY ONE IN 10 (9%) OF TEENS HAS BEEN VERBALLY OR PHYSICALLY ABUSED BY A BOYFRIEND OR GIRLFRIEND WHO WAS DRUNK OR HIGH

FOURTEEN PERCENT OF TEENS REPORT HAVING BEEN THREATENED WITH PHYSICAL HARM–EITHER TO THEM ORSELF-INFLICTED BY THEIR PARTNER TO AVOID A BREAKUP

10 Things on Kindle for $3.50! Order Now!

I know you’ve been thinking about ordering copies of 10 Things College Students Need to Know About Money for your children, grandchildren, cousins, neices and nephews but you wanted to read it first, right? You wanted to make sure that it was a good read with real information about personal finance. Well, here’s your chance! 10 Things College Students Need to Know About Money is now available on Kindle for only $3.50 per download!

Download yours on Amazon.com now.

 

 

 

Click the image to read more about Shay speaking at Cal State Long Beach.

Shay Olivarria is the most dynamic financial education speaker working today. She speaks at high schools, colleges, and companies across the country. She has written three books on personal finance, including Amazon Best Seller “Money Matters: The Get It Done in 1 Minute Workbook”. Shay has been quoted on Bankrate.com, FoxBusiness.com, NBC Latino and The Credit Union Times, among others. To schedule Shay to speak at your event visit www.BiggerThanYourBlock.com