Ask HTM - Home Security Cost Benefit Analysis, Advantages to Financing a Car, and 529 Impacts on Financial Aid #913
Dec 2, 2024
Listener questions spark engaging discussions on financing a car versus paying cash, and how 529 college savings plans can impact financial aid eligibility. The hosts explore the balance between the emotional and practical sides of financial decisions and delve into the evolving world of home security. They provide insights on comparing retirement plans and navigating sensitive family finance conversations, all while keeping it light-hearted and relatable!
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insights INSIGHT
Hidden Financial Motivations
Financing a car despite having cash might signal emotional discomfort with large purchases.
It could also indicate undisclosed financial struggles or a desire for a financial safety net.
volunteer_activism ADVICE
Gentle Financial Conversations
Instead of giving direct advice, ask curious questions like, "Why finance a car when you have the cash?"
This approach can open a dialogue and reveal underlying financial anxieties or past experiences.
insights INSIGHT
529 and Financial Aid
While 529 plans slightly reduce need-based aid, they have less impact than other assets.
The "grandparent loophole" allows grandparents to contribute without affecting aid.
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Let’s dive into the week with some fresh listener questions we have lined up for you! And don't just stand on the sidelines- if you have a question you’d like us to answer, toss your voice memo our way. It only takes about 90 seconds to record and you can find a step by step guide over at HowToMoney.com/ask . Regardless of how random or bizarre you might think it is, we want to hear it!
1 - How do I convince my in-laws that they’re wasting money by financing a car when they can pay cash?
2 - What kind of impact will saving in a 529 account have on my son’s ability to score financial aid?
3 - Should I choose a state provided pension or go with an Optional Retirement Plan (ORP)?
4 - Is there a way to run a cost benefit analysis on a home security system?
5 - Where should I turn for a solo 401k?
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