Beware! Don't Fall Into "The College Money Pit Trap!" | Evan Giokas - E80
- May 7, 2024
- 1:11:34
- Full Episode
Jesse starts this episode discussing his "50/50 rule" of college savings. Jesse also talks about 529-to-Roth conversions (why they're overrated!), the FAFSA, and other financial tools at our disposal for college planning.
Evan Giokas then joins the show to dive deeper into a college admissions conversation. Evan is the founder of The College Confidence Coach, which helps students through their higher educational journey. Evan covers what a "conative assessment" is, how to be cost-conscious when preparing for college, how to start college conversations with your child, and the importance of showing your values to college admissions staff..
If you're preparing a child for college, this is the episode for you!
Key Takeaways: • How to start the college conversation with your child • What is the Conative Assessment? • What is the college money pit trap? • How to be cost-conscious in college planning • How to optimize your FAFSA • The "50/50 Rule" for college saving • The pros and cons of 529–to-Roth conversions
Mentions:
🌐 Website: https://www.thecccoach.com/
👉🏼 LinkedIn: https://www.linkedin.com/in/evan-giokas-56443746/
📚 The Important Details Behind 529-to-Roth Conversions: https://bestinterest.blog/the-important-details-behind-529-to-roth-conversions/
📚 Follow the 50/50 Rule for College Saving: https://bestinterest.blog/the-50-50-rule-for-college-saving/
📚 University of the People: https://www.uopeople.edu/
More of The Best Interest:
Check out the Best Interest Blog at bestinterest.blog (https://bestinterest.blog/)
Contact me at [email protected]
The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.
Brief Summary
Evan Kokis discusses college financial planning and decision-making for students and parents, emphasizing the 50/50 rule for saving and understanding motivations.
Key points
- Understanding 529 Plans. Exploring the benefits and downsides of 529 college savings plans.
- The 50/50 Rule for College Savings. A balanced approach to saving for college using both 529 plans and taxable accounts.
- Roth Conversion Rule Explained. The new Roth conversion rule allows $35,000 from 529 accounts to be converted to Roth IRAs, growing tax-free.
- Timing Restrictions on Conversions. Investors must hold 529 accounts for at least 15 years before they can convert to Roth IRAs.
- Navigating College Decisions. Evan Giokas discusses the importance of guiding students through their college decision-making process.
- Understanding Conation. Evan explains the concept of conation and its relevance to decision-making for students.
Episode highlights
- Understanding 529 PlansExploring the benefits and downsides of 529 college savings plans.“What if my kid decides not to go to college?”5:24May 7, 2024
- The 50/50 Rule for College SavingsA balanced approach to saving for college using both 529 plans and taxable accounts.“The 50/50 rule provides the best of both worlds.”13:42May 7, 2024
- Roth Conversion Rule ExplainedThe new Roth conversion rule allows $35,000 from 529 accounts to be converted to Roth IRAs, growing tax-free.“That's a wonderful thing!”20:07May 7, 2024
- Timing Restrictions on ConversionsInvestors must hold 529 accounts for at least 15 years before they can convert to Roth IRAs.“The 529 account must be held for the designated beneficiary for at least 15 years.”20:45May 7, 2024
- Navigating College DecisionsEvan Giokas discusses the importance of guiding students through their college decision-making process.“It's hard to ask a 17-year-old to make that decision all by themselves.”29:41May 7, 2024
- Understanding ConationEvan explains the concept of conation and its relevance to decision-making for students.“Conation helps understand how unique talents align to different career paths.”36:50May 7, 2024
- The Theory of ConationUnderstanding the instinctive needs that drive cognitive performance can transform career paths.“Conation is the belief that before we have an emotional response, we have an instinct.”38:11May 7, 2024
- The College Money Pit TrapMany students face delays in graduation due to changing majors, leading to increased costs.“The longer you’re there, the more you’re paying; it’s not rocket science.”44:23May 7, 2024
