1 00:00:01,626 --> 00:00:03,951 Welcome to the kitchen table finance podcast 2 00:00:04,324 --> 00:00:06,863 where we make retirement planning easy and enjoyable. 3 00:00:07,673 --> 00:00:10,458 Discover practical advice to create a retirement strategy 4 00:00:10,458 --> 00:00:13,004 that fits your lifestyle and budget. Get ready 5 00:00:13,004 --> 00:00:16,505 for market updates, intriguing finance headlines, book reviews, 6 00:00:17,078 --> 00:00:20,106 special guests and inspiring case studies. So grab 7 00:00:20,106 --> 00:00:21,939 your favorite cup of coffee and join us 8 00:00:21,939 --> 00:00:23,692 at the table as we talk about everything, 9 00:00:23,851 --> 00:00:25,060 Fine, in retirement. 10 00:00:25,616 --> 00:00:27,684 We're here to support you in achieving the 11 00:00:27,684 --> 00:00:30,150 retirement of your dreams. Let's jump right in. 12 00:00:33,903 --> 00:00:35,652 Hey, Dave. How are you doing today? I'm 13 00:00:35,652 --> 00:00:36,686 doing great, Nick. How are you? 14 00:00:37,560 --> 00:00:40,105 I am doing well. Thank you for asking, 15 00:00:40,343 --> 00:00:40,661 sir. 16 00:00:41,473 --> 00:00:43,229 I know we usually go into a little 17 00:00:43,229 --> 00:00:45,383 bit about what the weather is doing today, 18 00:00:45,622 --> 00:00:48,016 but not even worth because we have a 19 00:00:48,016 --> 00:00:48,415 special guess, 20 00:00:49,866 --> 00:00:51,702 We're gonna skip right over. And Know everybody's 21 00:00:51,702 --> 00:00:53,457 gonna be real bummed about missing out on 22 00:00:53,457 --> 00:00:56,011 our weather conclusion our little chat. Yeah. 23 00:00:57,302 --> 00:01:01,209 I digress. Because today, we have Diane Brewer, 24 00:01:01,687 --> 00:01:04,956 who is the director of the Michigan education 25 00:01:04,956 --> 00:01:07,148 trust and oversees the 26 00:01:07,607 --> 00:01:08,486 05:29 27 00:01:08,486 --> 00:01:11,602 savings plans along with Michigan Education Trust. And 28 00:01:11,602 --> 00:01:13,614 so we have a bunch of questions for 29 00:01:13,614 --> 00:01:15,292 her. But before we do that, Diane, would 30 00:01:15,292 --> 00:01:17,290 you like to introduce yourself to the listeners 31 00:01:17,290 --> 00:01:18,488 and tell us a little bit about yourselves? 32 00:01:19,287 --> 00:01:22,439 Thank you. I'm Diane Brewer. I'm Mig. Executive 33 00:01:22,500 --> 00:01:25,540 director for the Michigan Education Trust, and that's 34 00:01:25,540 --> 00:01:28,120 the state's prepaid 05:29 35 00:01:28,180 --> 00:01:30,920 college savings plan. And I've been here 36 00:01:31,474 --> 00:01:33,093 starting my 20 first year 37 00:01:33,471 --> 00:01:34,031 this year. 38 00:01:34,670 --> 00:01:38,526 So I came in basically as a presenter 39 00:01:39,079 --> 00:01:40,059 and Outreach 40 00:01:40,438 --> 00:01:40,938 specialists 41 00:01:41,717 --> 00:01:44,295 helping make payments to out state schools 42 00:01:44,754 --> 00:01:46,932 and just helping parents 43 00:01:47,311 --> 00:01:48,690 grandparents and their students 44 00:01:49,639 --> 00:01:51,864 get to college and pay for with this 45 00:01:51,864 --> 00:01:55,282 little student debt or no student debt. Yeah. 46 00:01:55,759 --> 00:01:56,077 Great. 47 00:01:56,569 --> 00:01:58,398 I love it. And actually, that brings up 48 00:01:58,398 --> 00:02:00,149 a good question I have. Sounds like you've 49 00:02:00,149 --> 00:02:02,376 been there from, like, the ground up, When 50 00:02:02,376 --> 00:02:04,603 did the 05:29 51 00:02:04,603 --> 00:02:05,889 plan. When do that? Start. I don't even 52 00:02:05,889 --> 00:02:07,395 know. I feel like that's some knowledge I 53 00:02:07,395 --> 00:02:10,487 should have. But... Yeah. That's okay. The met 54 00:02:10,487 --> 00:02:10,987 program 55 00:02:11,518 --> 00:02:14,414 actually pre dates... Start 05:29 56 00:02:14,551 --> 00:02:14,949 statue. 57 00:02:15,744 --> 00:02:17,279 That was the first prepaid 58 00:02:18,449 --> 00:02:22,043 program in the nation, So the premise is 59 00:02:22,043 --> 00:02:25,564 that you're offering credit hours at today's price 60 00:02:25,938 --> 00:02:28,403 for use in the future. So when you're 61 00:02:28,403 --> 00:02:29,436 buying credit hours, 62 00:02:30,009 --> 00:02:31,930 for a newborn, you know that it's going 63 00:02:31,930 --> 00:02:35,370 to be 18 years of tuition increases before 64 00:02:35,370 --> 00:02:38,338 that trial goes to college. Yeah. And, you 65 00:02:38,338 --> 00:02:40,907 know, they've got 15 years from high school 66 00:02:41,123 --> 00:02:43,590 graduation to use that. So maybe there's a 67 00:02:43,590 --> 00:02:47,177 gap year or... For or military service, you 68 00:02:47,177 --> 00:02:49,636 know. Sure. When they Are ready to go 69 00:02:49,636 --> 00:02:52,016 to college then, the trust makes up the 70 00:02:52,016 --> 00:02:52,516 difference 71 00:02:53,142 --> 00:02:55,762 because college has gone up those years. It's 72 00:02:55,762 --> 00:02:56,477 not the 73 00:02:57,271 --> 00:02:59,653 liability of the purchaser to make up the 74 00:02:59,653 --> 00:03:01,718 difference. It's the trust that's making up the 75 00:03:01,718 --> 00:03:03,661 difference. And that's how you're saving 76 00:03:04,192 --> 00:03:07,522 by pre planning on college tuition. And those 77 00:03:07,522 --> 00:03:09,901 jumps says I'm sure you're aware are very 78 00:03:09,901 --> 00:03:12,378 low. Large these days in terms of yeah. 79 00:03:12,696 --> 00:03:14,364 I hope that tuition is going up every 80 00:03:14,364 --> 00:03:15,181 year. So 81 00:03:15,555 --> 00:03:16,508 We know it goes up. 82 00:03:17,223 --> 00:03:17,461 Yeah. 83 00:03:18,176 --> 00:03:20,898 Yeah Yes. Large So I think 1 of 84 00:03:20,898 --> 00:03:23,375 the big burning questions that we always get 85 00:03:23,375 --> 00:03:25,852 from listeners is kind of how do you 86 00:03:25,852 --> 00:03:29,054 take the met? Program that you just talked 87 00:03:29,054 --> 00:03:31,064 about. And then the Michigan 88 00:03:31,439 --> 00:03:33,664 education savings plan, which is the, you know, 89 00:03:33,823 --> 00:03:34,777 05:29 90 00:03:34,777 --> 00:03:36,247 version and how do you 91 00:03:36,623 --> 00:03:38,637 differentiate between those 2? How do you 92 00:03:39,172 --> 00:03:41,562 suggest that parents decide which route to go? 93 00:03:41,881 --> 00:03:43,952 Yeah. And we here that a lot ourselves 94 00:03:43,952 --> 00:03:46,602 too. And So here within the Department of 95 00:03:46,761 --> 00:03:50,277 Treasury, when we say Michigan Education Trust, we 96 00:03:50,277 --> 00:03:50,777 also 97 00:03:51,235 --> 00:03:51,475 oversee. 98 00:03:52,208 --> 00:03:54,857 Me space. So Met, and Me 99 00:03:55,233 --> 00:03:58,201 are what we call direct sold. So there's 100 00:03:58,577 --> 00:04:01,698 no commission structure. There is a program, Michigan 101 00:04:01,857 --> 00:04:04,805 Advisor plan that does have a commission structure, 102 00:04:04,964 --> 00:04:07,753 but what I can address today is the 103 00:04:07,753 --> 00:04:08,253 differences 104 00:04:08,629 --> 00:04:09,448 between Met 105 00:04:09,839 --> 00:04:10,738 an Me. 106 00:04:11,115 --> 00:04:13,188 Perfect. And how an individual would make up 107 00:04:13,188 --> 00:04:14,623 their mind. And first, 108 00:04:15,340 --> 00:04:15,978 I would say, 109 00:04:16,696 --> 00:04:18,392 this can be used together 110 00:04:18,704 --> 00:04:21,414 Yeah. Perfect world because we're always asked this 111 00:04:21,414 --> 00:04:25,002 question. Because Meta is specific to tuition. The 112 00:04:25,002 --> 00:04:27,646 only exception really is scholarship. Or you can 113 00:04:27,646 --> 00:04:29,180 use that money for other 114 00:04:29,555 --> 00:04:30,032 instances. 115 00:04:30,430 --> 00:04:32,657 And Me is very broad. It could be 116 00:04:32,657 --> 00:04:33,635 used for to 117 00:04:34,184 --> 00:04:36,578 and room board and books and lab fees 118 00:04:36,578 --> 00:04:38,653 and all those other things that come along 119 00:04:38,653 --> 00:04:39,930 with college experience. 120 00:04:40,568 --> 00:04:42,813 So in a perfect world a student would 121 00:04:42,813 --> 00:04:44,560 have some tuition locked in with Met, 122 00:04:45,274 --> 00:04:47,735 and then there would be an Vs account. 123 00:04:48,212 --> 00:04:50,593 However, that doesn't fit everybody's. 124 00:04:51,323 --> 00:04:53,885 Budget that doesn't fit everybody's 125 00:04:54,258 --> 00:04:56,796 desire for how much and what they can 126 00:04:56,796 --> 00:04:57,827 do for their student. 127 00:04:58,541 --> 00:04:59,041 So 128 00:04:59,429 --> 00:05:02,536 They're perfectly open and free to, make a 129 00:05:02,536 --> 00:05:03,036 choice 130 00:05:03,492 --> 00:05:05,564 depending on what's going to work best for 131 00:05:05,564 --> 00:05:05,803 them. 132 00:05:07,013 --> 00:05:09,479 So with Med, in both of these plans, 133 00:05:10,275 --> 00:05:12,503 because they're both are 05:20 nines, so we'll 134 00:05:12,503 --> 00:05:14,427 hear them a lot people say. You know, 135 00:05:14,585 --> 00:05:16,011 I don't know about Matt. I want that 136 00:05:16,011 --> 00:05:19,181 05:29. Well, we're both 05:20 nines, which means 137 00:05:19,181 --> 00:05:21,161 we both have the same tax advantages nhs. 138 00:05:21,320 --> 00:05:21,733 You Okay. 139 00:05:22,689 --> 00:05:24,363 The thing about 05:29 140 00:05:24,363 --> 00:05:25,739 college savings vehicles 141 00:05:26,434 --> 00:05:27,709 is the tax savings. 142 00:05:28,187 --> 00:05:28,347 So... 143 00:05:29,158 --> 00:05:31,863 As a Michigan resident using a Michigan program, 144 00:05:32,261 --> 00:05:34,727 you get a schedule 1 deduction for monies 145 00:05:34,727 --> 00:05:35,602 that you put in. 146 00:05:36,174 --> 00:05:36,971 On the programs. 147 00:05:37,370 --> 00:05:40,024 And with methods the full contract value 148 00:05:40,720 --> 00:05:41,698 with Me, 149 00:05:42,474 --> 00:05:44,628 there are caps as to what you can 150 00:05:44,628 --> 00:05:47,774 claim each year or an individual is 5000 151 00:05:47,833 --> 00:05:51,022 or for couples filing jointly, it's 10000. 152 00:05:51,341 --> 00:05:53,973 And that's every year that you're contributing to 153 00:05:53,973 --> 00:05:56,058 the program now, you can put in more, 154 00:05:56,217 --> 00:05:57,672 but what you can claim 155 00:05:58,524 --> 00:06:00,535 is that 5 or 10000 dollar 156 00:06:01,228 --> 00:06:03,001 deduction. And then federally, 157 00:06:03,789 --> 00:06:04,903 all 05:29 158 00:06:04,903 --> 00:06:05,403 programs 159 00:06:05,859 --> 00:06:06,916 have the advantage 160 00:06:07,372 --> 00:06:09,703 of not being taxed on earnings 161 00:06:10,238 --> 00:06:11,751 as these accounts are growing. 162 00:06:12,965 --> 00:06:14,884 In the end endgame, when these are used 163 00:06:14,884 --> 00:06:18,105 for qualified higher education expenses, you're not taxed 164 00:06:18,165 --> 00:06:18,665 either 165 00:06:18,965 --> 00:06:19,764 on the earnings. 166 00:06:20,499 --> 00:06:22,497 You would be taxed on the earnings if 167 00:06:22,497 --> 00:06:25,234 you pull the money out for other expenses 168 00:06:25,613 --> 00:06:27,531 or the child didn't go to college at 169 00:06:27,531 --> 00:06:28,091 that point, 170 00:06:29,623 --> 00:06:32,335 It's based on the earnings only because these 171 00:06:32,335 --> 00:06:36,163 05:29 plans are already after tax dollars. You've 172 00:06:36,163 --> 00:06:38,397 already paid taxes on what you've put in. 173 00:06:39,529 --> 00:06:41,767 So fees there would just be on the 174 00:06:41,767 --> 00:06:42,166 earnings. 175 00:06:42,886 --> 00:06:45,043 The way I would put it to a 176 00:06:45,043 --> 00:06:46,961 client, I think, and it it'd be interested 177 00:06:46,961 --> 00:06:49,134 in your take on this is that with 178 00:06:49,134 --> 00:06:49,935 the Me, 179 00:06:50,254 --> 00:06:52,415 your department is taking the investment risk. 180 00:06:52,975 --> 00:06:56,175 Yes. Right. The the client knows their outcome, 181 00:06:56,495 --> 00:06:58,660 kind of like a... A pension plan or 182 00:06:58,660 --> 00:07:01,444 or some other product like that where you're 183 00:07:01,444 --> 00:07:04,308 paying today's dollars for future tuition. You don't 184 00:07:04,308 --> 00:07:06,473 have to worry about whether The market is 185 00:07:06,473 --> 00:07:08,467 up, the market is down. You just know 186 00:07:08,467 --> 00:07:10,382 that you have certain amounts of tuition covered 187 00:07:10,382 --> 00:07:13,015 where the Me, you're taking on some investment 188 00:07:13,015 --> 00:07:14,882 risk. But you're gaining some flexibility. 189 00:07:16,049 --> 00:07:18,431 Exactly. Good. I like the idea of working 190 00:07:18,431 --> 00:07:19,463 of using them together. 191 00:07:20,177 --> 00:07:22,413 Haven't done that, very often. I've had some 192 00:07:22,413 --> 00:07:24,077 clients with some of each, but usually, they 193 00:07:24,077 --> 00:07:27,248 were independent decisions done at different times. And 194 00:07:27,248 --> 00:07:30,850 we've spoken with Very purchasers who have started 195 00:07:31,089 --> 00:07:31,589 Me, 196 00:07:32,050 --> 00:07:35,169 knowing that as their Me grows, then they 197 00:07:35,169 --> 00:07:37,421 would lock in some credit hours. They might 198 00:07:37,421 --> 00:07:38,854 build it out to the point where they've 199 00:07:38,854 --> 00:07:41,719 got a semester worth of tuition and roll 200 00:07:41,719 --> 00:07:44,209 it over because rollover are acceptable 201 00:07:44,584 --> 00:07:46,097 between 05:29 programs. 202 00:07:46,987 --> 00:07:48,577 So they can be used that way too. 203 00:07:49,134 --> 00:07:50,588 So the Me 204 00:07:51,122 --> 00:07:51,622 program, 205 00:07:52,235 --> 00:07:55,257 I believe there's several different options as far 206 00:07:55,257 --> 00:07:57,985 as, like, how much tuition you wanna purchase 207 00:07:57,985 --> 00:07:59,185 and how to pay for that. Is that 208 00:07:59,185 --> 00:08:02,865 correct? Yes. There's 3 different options for the 209 00:08:02,865 --> 00:08:05,045 plans that we offer, and then there's different 210 00:08:05,105 --> 00:08:06,716 options on the pricing. Structure. 211 00:08:07,351 --> 00:08:10,210 So we have 2 university level programs, 212 00:08:10,687 --> 00:08:12,457 a full limited university 213 00:08:13,069 --> 00:08:14,045 level program 214 00:08:14,513 --> 00:08:16,971 and then we have a community college program. 215 00:08:17,209 --> 00:08:19,905 So first, you decide which program you wanted. 216 00:08:20,064 --> 00:08:22,046 Maybe you live in an area, you've got 217 00:08:22,046 --> 00:08:24,927 us... Strong community college or child's a little 218 00:08:24,927 --> 00:08:27,157 bit older, maybe they're in middle school, and 219 00:08:27,157 --> 00:08:29,387 you... And they've got a particular leaning and 220 00:08:29,387 --> 00:08:31,233 you think this is gonna be great. We're 221 00:08:31,233 --> 00:08:33,145 going to go to the local community college. 222 00:08:33,703 --> 00:08:35,797 So you can lock in the in district 223 00:08:36,014 --> 00:08:38,563 tuition with the contract, or maybe you don't 224 00:08:38,563 --> 00:08:40,077 know, but you want them to go to 225 00:08:40,077 --> 00:08:40,577 universe 226 00:08:40,888 --> 00:08:42,637 or maybe there's a legacy legacy, 227 00:08:43,034 --> 00:08:44,307 and you want them to go to the 228 00:08:44,307 --> 00:08:46,135 same place you want to. So you know 229 00:08:46,135 --> 00:08:47,884 that... Well, this is 1 of the more 230 00:08:47,884 --> 00:08:49,713 expensive schools in the state. I want the 231 00:08:49,713 --> 00:08:52,205 full benefits of program, I want them to 232 00:08:52,205 --> 00:08:54,365 be completely covered if I buy 30 credits, 233 00:08:54,605 --> 00:08:56,125 I wanna know of I've got 30 credits. 234 00:08:57,404 --> 00:08:59,665 The difference with the limited benefits program 235 00:09:00,058 --> 00:09:02,361 is that for most of the colleges it 236 00:09:02,361 --> 00:09:04,823 will pay based on what you buy 30 237 00:09:04,823 --> 00:09:06,729 for 30. And I use 30 because that's 238 00:09:06,729 --> 00:09:08,580 usually what it takes for a year 239 00:09:09,764 --> 00:09:12,401 But knowing that, the pricing is a little 240 00:09:12,401 --> 00:09:12,880 bit less, 241 00:09:13,520 --> 00:09:15,138 and there are some schools 242 00:09:15,757 --> 00:09:17,275 with higher cost than others. 243 00:09:18,168 --> 00:09:19,520 We look at it and go well, if 244 00:09:19,520 --> 00:09:21,667 the school is over a hundred and 5 245 00:09:21,667 --> 00:09:23,416 percent of the weighted average with a limited 246 00:09:23,416 --> 00:09:25,563 benefits program. We have to pro down. 247 00:09:26,293 --> 00:09:28,860 What we can actually cover. You may have 248 00:09:28,916 --> 00:09:31,062 purchased 30 credit hours thinking, 249 00:09:32,652 --> 00:09:34,321 I went to Ferris, my wife went to 250 00:09:34,480 --> 00:09:36,326 Ferris, my child old is going to go 251 00:09:36,326 --> 00:09:38,959 to fairs. They're even talking about going to 252 00:09:38,959 --> 00:09:40,634 fairs because this happened in my family. 253 00:09:41,511 --> 00:09:43,026 Everybody was going to go to fairs. And 254 00:09:43,026 --> 00:09:44,622 then in the end, you know, as a 255 00:09:44,622 --> 00:09:47,027 senior and in a high we're like, hey, 256 00:09:47,187 --> 00:09:49,178 U of them has this great program. It's 257 00:09:49,178 --> 00:09:50,692 just what I want, and that's where I'm 258 00:09:50,692 --> 00:09:52,923 going. Well, you of them then because of 259 00:09:52,923 --> 00:09:54,857 the price structure with the limited benefits 260 00:09:55,248 --> 00:09:56,066 we would cover 261 00:09:56,679 --> 00:09:57,577 27 262 00:09:57,633 --> 00:09:59,780 out of 30 and the student we'll get 263 00:09:59,780 --> 00:10:01,371 the rest. So you still get a good 264 00:10:01,371 --> 00:10:04,495 benefit. But it's another option for someone who 265 00:10:05,123 --> 00:10:06,874 you know, believes in that kind of a 266 00:10:06,874 --> 00:10:08,943 structure going, yeah, Well... And we can, you 267 00:10:08,943 --> 00:10:11,489 know, kind coach people on ways to make 268 00:10:11,489 --> 00:10:11,967 up for that. 269 00:10:12,855 --> 00:10:14,519 Obviously, if you have a 4 year met 270 00:10:14,519 --> 00:10:16,658 and you're in that situation. If you pay 271 00:10:16,658 --> 00:10:19,115 those 3 credit hours when they're freshman, 272 00:10:19,844 --> 00:10:22,238 going come a lot less than paying it 273 00:10:22,238 --> 00:10:23,914 when they run out as a senior. 274 00:10:24,393 --> 00:10:26,468 Yeah. That surprises a lot of people with 275 00:10:26,468 --> 00:10:26,968 the 276 00:10:27,425 --> 00:10:27,585 jumps. 277 00:10:28,477 --> 00:10:31,345 Yeah. Yeah. Because there's different fee structures for 278 00:10:31,345 --> 00:10:34,634 junior and Seniors. Yeah. And is plus the 279 00:10:34,692 --> 00:10:37,321 annual tuition increases because those don't stop. 280 00:10:38,131 --> 00:10:39,084 Because you're in college. 281 00:10:39,878 --> 00:10:42,101 So, you know, we'll help people mitigate as 282 00:10:42,101 --> 00:10:43,450 much as we can. But those are the 283 00:10:43,450 --> 00:10:45,673 3 different options, You would say, well, yes, 284 00:10:45,832 --> 00:10:48,154 I won't met of which plan do I 285 00:10:48,154 --> 00:10:51,103 want. And then beyond that, there's... How am 286 00:10:51,262 --> 00:10:54,784 I going to pay which pricing option, what 287 00:10:54,944 --> 00:10:57,980 I like. When that started, it was all 288 00:10:57,980 --> 00:11:00,218 lump sum. It was 1 year, 2 year, 289 00:11:00,537 --> 00:11:03,035 3 year or 4 year. And as 290 00:11:03,429 --> 00:11:06,802 times have progressed as tuition have gone up 291 00:11:06,940 --> 00:11:10,212 as there's more 05:29 programs now to bounce 292 00:11:10,212 --> 00:11:10,850 ideas off, 293 00:11:11,424 --> 00:11:13,342 and see what working for people. 294 00:11:14,541 --> 00:11:17,098 It wasn't maybe after just the first year, 295 00:11:17,258 --> 00:11:18,697 people said, well, I'd like to do this, 296 00:11:18,857 --> 00:11:20,535 but I need a monthly purchase plan. 297 00:11:21,110 --> 00:11:24,070 So there's a monthly purchase plan. And for, 298 00:11:24,309 --> 00:11:25,669 about the last 8 years, 299 00:11:26,389 --> 00:11:27,350 people have been saying, 300 00:11:27,990 --> 00:11:30,643 I need a lower entry point. So now 301 00:11:30,643 --> 00:11:31,999 there is pay as you go. 302 00:11:32,716 --> 00:11:34,790 And that's working out very nicely like, 303 00:11:35,588 --> 00:11:38,698 the obligation there is that you open the 304 00:11:38,698 --> 00:11:40,704 contract by purchasing 1 credit hour. 305 00:11:41,260 --> 00:11:43,085 And after you purchase at 1 credit hour, 306 00:11:43,244 --> 00:11:46,576 you can make deposits at will, minimum 25 307 00:11:46,576 --> 00:11:48,402 dollars. So you have to keep in mind, 308 00:11:48,640 --> 00:11:50,193 credit you know, what are the current 309 00:11:50,972 --> 00:11:52,809 credit hour costs? If I put in a 310 00:11:52,809 --> 00:11:55,366 hundred dollars, Yes, I'm buying fractions of credits, 311 00:11:55,526 --> 00:11:56,645 but those can add up, 312 00:11:57,457 --> 00:12:00,187 and and it's a great gifting opportunity 313 00:12:00,802 --> 00:12:02,872 let cram and grandpa grandparents aunts and uncle 314 00:12:02,872 --> 00:12:03,270 uncles know, 315 00:12:04,067 --> 00:12:06,393 basically, all they need to know is contract 316 00:12:06,393 --> 00:12:08,469 number. They don't see any information they can 317 00:12:08,469 --> 00:12:10,385 go online and they'll they'll see them the 318 00:12:10,385 --> 00:12:11,822 name of the student. They'll go, yes. I'm 319 00:12:11,822 --> 00:12:13,418 giving money to the right student, you know, 320 00:12:14,296 --> 00:12:17,208 and make a gift toward the 05:29 321 00:12:17,507 --> 00:12:18,386 net in 322 00:12:18,945 --> 00:12:22,061 Me has a gifting program too. I yeah. 323 00:12:22,381 --> 00:12:24,094 I remember when I started 324 00:12:24,467 --> 00:12:25,603 my daughter's 325 00:12:25,977 --> 00:12:28,916 Me back in maybe 2003. 326 00:12:30,108 --> 00:12:32,428 It... Everything was still paper back then. And 327 00:12:32,508 --> 00:12:35,061 I remember that the monthly statements actually had 328 00:12:35,061 --> 00:12:38,433 deposit slips that you could give to grandparents 329 00:12:38,492 --> 00:12:41,055 aunts and uncles And I remember talking to 330 00:12:41,055 --> 00:12:42,805 clients back then because it was fairly common 331 00:12:42,805 --> 00:12:45,214 for grandparents to buy savings bonds for. 332 00:12:45,669 --> 00:12:45,828 Yes. 333 00:12:46,559 --> 00:12:46,879 To 334 00:12:47,437 --> 00:12:49,034 do do take the give 335 00:12:49,592 --> 00:12:52,487 give grandparents those deposit slips instead of 336 00:12:52,865 --> 00:12:55,121 having them buy savings bonds for birthdays 337 00:12:55,674 --> 00:12:58,151 Anyway, I kinda missed those paper coupons. Well, 338 00:12:58,311 --> 00:12:59,829 we could probably work in and get you 339 00:12:59,829 --> 00:13:00,069 feel. 340 00:13:01,028 --> 00:13:02,786 I I think you can download a form 341 00:13:02,786 --> 00:13:04,005 for that but those 342 00:13:05,035 --> 00:13:06,942 Well, I'll tell you, Diane, what I don't 343 00:13:06,942 --> 00:13:09,486 miss is having to make tuition payments and 344 00:13:09,486 --> 00:13:11,473 say for college anymore. I'm beyond that now. 345 00:13:14,592 --> 00:13:16,666 Congratulations. Thanks. Which is the help of the 346 00:13:16,985 --> 00:13:20,277 Michigan Education savings plan. So I'm curious. 347 00:13:21,230 --> 00:13:21,730 Obviously, 348 00:13:22,110 --> 00:13:24,269 not everybody goes to College and Michigan to 349 00:13:24,269 --> 00:13:26,670 which I always say, if you aren't looking 350 00:13:26,670 --> 00:13:28,565 hard enough out of Michigan like, every 351 00:13:29,160 --> 00:13:30,429 we have such great schools. I don't know 352 00:13:30,429 --> 00:13:31,858 why people leave is what I'm trying to 353 00:13:31,858 --> 00:13:33,842 say fun. They do. And I know that's 354 00:13:33,842 --> 00:13:35,588 a worry for parents of, like, what happens 355 00:13:35,588 --> 00:13:36,778 if my kid goes out of state. 356 00:13:37,509 --> 00:13:39,350 Mom, and there are some provisions. Right? That. 357 00:13:39,589 --> 00:13:42,309 Correct? Definitely. A wonderful question and we hear 358 00:13:42,309 --> 00:13:44,309 that a lot. But since day 1, there's 359 00:13:44,309 --> 00:13:46,809 always been a provision. It's really a formula. 360 00:13:47,124 --> 00:13:48,979 What we do is we calculate 361 00:13:49,834 --> 00:13:51,907 what we would have been sending to a 362 00:13:52,146 --> 00:13:53,284 Michigan public university 363 00:13:53,660 --> 00:13:56,382 on behalf of your child. So different contracts 364 00:13:56,382 --> 00:13:58,846 will have slightly different formulas. But let's say 365 00:13:58,846 --> 00:14:00,061 you've got a full benefits 366 00:14:00,514 --> 00:14:02,501 contract and your student decides to go out 367 00:14:02,501 --> 00:14:04,448 of. State, We would look at the average 368 00:14:04,664 --> 00:14:06,756 tuition of the Michigan Public universities 369 00:14:07,131 --> 00:14:09,041 in the year that your student presents their 370 00:14:09,041 --> 00:14:11,923 paperwork to us. You know, 15 years down 371 00:14:11,923 --> 00:14:14,075 the road or 18 whenever it was purchased 372 00:14:14,075 --> 00:14:15,829 for them. When they tell us they're going 373 00:14:15,829 --> 00:14:17,444 out of state, we look at the average 374 00:14:17,582 --> 00:14:17,741 tuition, 375 00:14:18,474 --> 00:14:20,226 per year. We look at the number of 376 00:14:20,226 --> 00:14:22,537 years or the number of credit hours in 377 00:14:22,537 --> 00:14:24,073 some cases and 378 00:14:24,449 --> 00:14:26,759 multiply those 2 figures, and we divide it 379 00:14:26,759 --> 00:14:27,658 out by 4 380 00:14:28,129 --> 00:14:30,759 payout over 4 years. So we've always been 381 00:14:30,759 --> 00:14:33,469 able to accommodate those students reasonably who are 382 00:14:33,469 --> 00:14:35,541 going out of state? Is it going to 383 00:14:35,541 --> 00:14:37,872 cover their full tuition, like order in Michigan, 384 00:14:38,112 --> 00:14:39,630 probably not. Right. 385 00:14:40,429 --> 00:14:41,728 There was a time 386 00:14:42,187 --> 00:14:44,839 where there were some schools where we'd actually 387 00:14:44,839 --> 00:14:47,316 be sending leftover over money back because I've 388 00:14:47,316 --> 00:14:49,393 been paying bills for students for, you know, 389 00:14:49,633 --> 00:14:51,311 more years ago. And 390 00:14:51,790 --> 00:14:54,271 you know, Florida Kentucky, Georgia, They had good 391 00:14:54,271 --> 00:14:56,652 schools, but they had a lot of public 392 00:14:56,652 --> 00:14:59,748 funding and their tuition just weren't that high. 393 00:14:59,907 --> 00:15:00,145 So 394 00:15:00,796 --> 00:15:02,384 They go to school. We'd pay the bill. 395 00:15:02,543 --> 00:15:04,051 And the end of this summer, we'd send 396 00:15:04,051 --> 00:15:05,878 the money back to the... What we call 397 00:15:05,878 --> 00:15:07,942 the refund does and they usually the purchaser. 398 00:15:08,419 --> 00:15:11,457 On. Like, but that's not so much the 399 00:15:11,457 --> 00:15:11,957 case 400 00:15:12,572 --> 00:15:15,281 anymore. But there's always been those provisions for 401 00:15:15,281 --> 00:15:17,511 not only outer state schools, but we have 402 00:15:17,511 --> 00:15:19,699 another formula for in state, private 403 00:15:20,154 --> 00:15:22,382 institutions. So if they're going to do a 404 00:15:22,382 --> 00:15:25,407 k College or university of Detroit, 405 00:15:26,282 --> 00:15:28,944 Davenport, we can also make payments to those 406 00:15:29,319 --> 00:15:29,557 institutions. 407 00:15:31,226 --> 00:15:32,998 Do you work for Michigan State University? 408 00:15:33,452 --> 00:15:35,996 Are you looking for solid retirement planning advice? 409 00:15:36,488 --> 00:15:38,716 Reach out to Dave Nick, hosts of the 410 00:15:38,716 --> 00:15:41,205 kitchen table finance podcast and certified 411 00:15:41,580 --> 00:15:42,296 financial advisors. 412 00:15:43,012 --> 00:15:45,652 They specialize in the unique benefit plans offered 413 00:15:45,652 --> 00:15:48,193 by Ms and how to capitalize on all 414 00:15:48,193 --> 00:15:50,416 you have available to you through your investments. 415 00:15:51,051 --> 00:15:52,798 Sure. You can glance at your package once 416 00:15:52,798 --> 00:15:55,119 a year and check some boxes offered or 417 00:15:55,119 --> 00:15:56,957 you can make your money work for you. 418 00:15:57,596 --> 00:15:59,514 Find out if you're getting everything you could 419 00:15:59,514 --> 00:16:01,831 be with your Ms asu retirement plan by 420 00:16:01,831 --> 00:16:05,120 contacting shot well rudder bear financial planners at 421 00:16:05,120 --> 00:16:08,073 sr b advisors dot com or simply search 422 00:16:08,073 --> 00:16:10,947 for the kitchen table finance podcasts wherever you 423 00:16:10,947 --> 00:16:11,825 get your podcasts, 424 00:16:12,558 --> 00:16:15,589 That's the kitchen table finance podcast hosted by 425 00:16:15,589 --> 00:16:17,662 shot well Rudder Bear financial planners. 426 00:16:18,859 --> 00:16:20,932 When when we're dealing with clients on the 427 00:16:20,932 --> 00:16:21,491 planning end. 428 00:16:22,223 --> 00:16:25,648 Usually the objections focus around, well, what if 429 00:16:25,648 --> 00:16:27,639 what if this happens? What if my son 430 00:16:27,639 --> 00:16:29,550 doesn't go to college. What if my daughter 431 00:16:29,550 --> 00:16:30,528 gets a scholarship, 432 00:16:30,919 --> 00:16:33,236 Yeah, it seems to me that the evolution 433 00:16:33,236 --> 00:16:35,974 of these plans in general has been to 434 00:16:36,033 --> 00:16:37,971 eliminate and reduce those 435 00:16:38,430 --> 00:16:38,670 objections. 436 00:16:40,601 --> 00:16:43,954 Yeah. We've always always had a provision for 437 00:16:43,954 --> 00:16:44,454 scholarship. 438 00:16:44,832 --> 00:16:46,769 That's a beautiful place to be 439 00:16:47,148 --> 00:16:48,286 because the scholarship. 440 00:16:48,839 --> 00:16:51,788 We've got options, especially if it's a full 441 00:16:51,788 --> 00:16:52,607 tuition scholarship 442 00:16:53,223 --> 00:16:55,956 because you can transfer those benefits to another 443 00:16:56,253 --> 00:16:56,572 child. 444 00:16:57,384 --> 00:16:59,378 You can cash it out, and then you've 445 00:16:59,378 --> 00:17:01,053 got the money for the room in the 446 00:17:01,053 --> 00:17:03,047 board and the books or whatever you would 447 00:17:03,047 --> 00:17:05,599 like to do with it. Partial scholarships, we 448 00:17:05,599 --> 00:17:06,716 usually work with the school. 449 00:17:07,449 --> 00:17:09,705 So that the student gets their full 450 00:17:10,243 --> 00:17:13,117 partial scholarship and all of their met money. 451 00:17:13,436 --> 00:17:16,012 In that instance, we'll let them pass left 452 00:17:16,724 --> 00:17:18,955 meant money into room and board and those 453 00:17:18,955 --> 00:17:19,991 other expenses. 454 00:17:20,469 --> 00:17:22,780 So there's always been those options, and there's 455 00:17:22,780 --> 00:17:25,585 always been a provision for the instance when 456 00:17:25,585 --> 00:17:28,297 your child says I'm not going to... You 457 00:17:28,297 --> 00:17:31,030 can get the money back based on tuition 458 00:17:31,168 --> 00:17:33,402 increases over the years, you're entitled to your 459 00:17:33,402 --> 00:17:33,800 earnings. 460 00:17:34,453 --> 00:17:37,084 But that's when your earnings will be subject 461 00:17:37,084 --> 00:17:39,795 to income tax at your tax rate plus 462 00:17:39,795 --> 00:17:42,607 a 10 percent equity fee for 463 00:17:43,399 --> 00:17:45,237 simply cashing it out and not using it 464 00:17:45,237 --> 00:17:46,936 for education. So 465 00:17:47,714 --> 00:17:49,653 my understanding is some recent 466 00:17:50,192 --> 00:17:52,029 legislation even made a little bit more flex. 467 00:17:52,444 --> 00:17:55,661 As far as move money into roth Ira 468 00:17:55,800 --> 00:17:58,517 so you can start saving for retirement. Yes. 469 00:17:58,757 --> 00:18:01,490 That is currently under works. And we don't 470 00:18:01,490 --> 00:18:04,149 know all the details yet. And we're still 471 00:18:04,210 --> 00:18:06,789 deep dependent on all of the federal 472 00:18:07,409 --> 00:18:09,813 regulations. But what we know is that the 473 00:18:09,813 --> 00:18:12,675 opportunity to Exists now to take leftover over 474 00:18:12,675 --> 00:18:13,629 05:29 475 00:18:13,629 --> 00:18:15,799 monies and roll them into a Roth Ira 476 00:18:16,094 --> 00:18:18,834 for the beneficiary. For the 477 00:18:19,287 --> 00:18:22,938 student, not for the purchaser owner. And we 478 00:18:22,938 --> 00:18:24,866 know that the account 479 00:18:25,334 --> 00:18:26,526 the 05:29 480 00:18:26,526 --> 00:18:29,332 account had to have been in existence for 481 00:18:29,388 --> 00:18:30,024 15 years. 482 00:18:30,660 --> 00:18:33,760 And the smaller rules are still to be 483 00:18:33,760 --> 00:18:35,469 clarified, but, It's a, 484 00:18:36,245 --> 00:18:38,659 you know, it's a it's a very exciting 485 00:18:38,877 --> 00:18:41,988 option. Yes. It's it's always fun that 486 00:18:42,705 --> 00:18:45,271 you know, Congress can pass these rules and 487 00:18:45,271 --> 00:18:46,226 make these broad 488 00:18:47,021 --> 00:18:48,294 proclamation, and then they live leave it up 489 00:18:48,294 --> 00:18:50,123 to folks like you to work out the 490 00:18:50,123 --> 00:18:52,920 details after the fact. Right? Yeah. Yes. And 491 00:18:52,920 --> 00:18:55,382 that and that's what's going on. You, we've 492 00:18:55,382 --> 00:18:58,638 belong to, as a 05:29, we belong to 493 00:18:58,638 --> 00:19:01,988 the college savings pro program that. Savings plan 494 00:19:01,988 --> 00:19:04,846 network, which is part of Nas, the National 495 00:19:05,005 --> 00:19:05,505 Treasures 496 00:19:06,752 --> 00:19:07,943 association for the State Forge, 497 00:19:08,499 --> 00:19:09,928 and they're doing a lot of work, 498 00:19:10,738 --> 00:19:12,888 to clean up the details so we can 499 00:19:12,888 --> 00:19:15,516 be able to tell people, you know, exactly 500 00:19:15,516 --> 00:19:17,268 how this is going to work. We're not 501 00:19:17,268 --> 00:19:19,755 quite there yet, but we're getting there Another 502 00:19:19,755 --> 00:19:21,994 great option. It sounds like so I think 503 00:19:21,994 --> 00:19:24,634 that's gonna be super helpful for people. We 504 00:19:24,634 --> 00:19:26,315 another, you know, another reason, 505 00:19:26,715 --> 00:19:28,690 another reason off the list of 506 00:19:29,289 --> 00:19:31,287 objections to savings for college is the way 507 00:19:31,446 --> 00:19:33,205 I look at it, It's probably not going 508 00:19:33,205 --> 00:19:35,442 to actually be relevant for most of our 509 00:19:35,442 --> 00:19:37,894 clients. But if it's another thing that 510 00:19:38,413 --> 00:19:39,790 makes it psychologically 511 00:19:40,168 --> 00:19:42,560 easier for a parent or grandparent to put 512 00:19:42,560 --> 00:19:44,554 money aside for college. I'm all for it. 513 00:19:44,794 --> 00:19:47,367 As our way here. We're, you know, accommodating 514 00:19:47,585 --> 00:19:49,136 the federal initiative 515 00:19:49,513 --> 00:19:50,570 to accommodate 516 00:19:51,106 --> 00:19:54,054 trade schools and apprenticeship. We've got a bit 517 00:19:54,054 --> 00:19:56,205 of a hurdle here in Michigan about the 518 00:19:56,205 --> 00:19:57,241 tax free status, 519 00:19:57,734 --> 00:20:00,875 which we're currently working on. There's some, 520 00:20:01,174 --> 00:20:03,255 you know, going to be some legislation. That 521 00:20:03,255 --> 00:20:04,375 will maybe loosen that up, 522 00:20:05,108 --> 00:20:07,340 people have always been able to, and you 523 00:20:07,340 --> 00:20:09,891 wouldn't probably realize it unless you called in 524 00:20:09,891 --> 00:20:12,123 and talk to us, but people we've always 525 00:20:12,123 --> 00:20:14,608 been able to... At least work out a 526 00:20:14,608 --> 00:20:15,722 refund for someone who says, 527 00:20:16,439 --> 00:20:18,668 what we saw most often when I started 528 00:20:18,668 --> 00:20:20,362 paying bills was, c 529 00:20:20,738 --> 00:20:21,215 programs. 530 00:20:21,868 --> 00:20:22,586 And then 531 00:20:23,224 --> 00:20:23,963 Emt programs 532 00:20:24,660 --> 00:20:25,160 and, 533 00:20:27,930 --> 00:20:29,786 electrician through community colleges 534 00:20:30,323 --> 00:20:31,062 and sometimes 535 00:20:31,613 --> 00:20:34,019 that individual having that refund 536 00:20:34,472 --> 00:20:37,196 and then themselves certifying as to, 537 00:20:37,888 --> 00:20:39,420 you know, what was a qualified 538 00:20:39,809 --> 00:20:41,805 spence and what was. And so we've always 539 00:20:41,805 --> 00:20:44,199 been able to accommodate, but now with this 540 00:20:44,199 --> 00:20:45,556 broader federal language, 541 00:20:45,955 --> 00:20:48,325 we've got more room, but we have to 542 00:20:48,444 --> 00:20:50,515 clear the hurdle of making a tax free. 543 00:20:50,913 --> 00:20:53,224 And that's what we're working on. Good. Awesome. 544 00:20:53,383 --> 00:20:53,463 Good. 545 00:20:54,339 --> 00:20:55,136 That's important stuff. 546 00:20:55,948 --> 00:20:58,022 Most important programs right now for sure. Yeah. 547 00:20:58,660 --> 00:20:59,378 Yeah. Good. 548 00:21:00,175 --> 00:21:02,887 So I'm curious, Diane, in your 20 years 549 00:21:02,887 --> 00:21:05,381 of experience. I'm sure you've seen a lot 550 00:21:05,534 --> 00:21:08,188 have you seen, are there common mistakes or 551 00:21:08,405 --> 00:21:10,240 misunderstandings that you see people make when it 552 00:21:10,240 --> 00:21:11,277 comes to these programs? 553 00:21:11,835 --> 00:21:13,691 1 mistake is that 554 00:21:14,388 --> 00:21:16,718 what we see is people that feel like 555 00:21:16,718 --> 00:21:18,476 they've waited too long and it's not going 556 00:21:18,476 --> 00:21:19,275 to make a difference. 557 00:21:20,074 --> 00:21:22,951 And that's simply not true because anything you 558 00:21:22,951 --> 00:21:25,122 can put in in save something you're not 559 00:21:25,122 --> 00:21:27,754 going to have to come up with right 560 00:21:27,754 --> 00:21:30,227 in the road. We see people concerned about 561 00:21:30,227 --> 00:21:32,380 how having a 05:29, 562 00:21:32,620 --> 00:21:33,837 they're at Me 563 00:21:34,627 --> 00:21:37,905 how it's going to impact their financial aid 564 00:21:38,040 --> 00:21:40,183 eligibility. Well, my child isn't going to be 565 00:21:40,183 --> 00:21:42,579 able to get, you know, the pull Mh. 566 00:21:42,897 --> 00:21:45,357 Free money if I've saved up too much 567 00:21:45,357 --> 00:21:45,596 money. 568 00:21:46,310 --> 00:21:47,286 And that's 569 00:21:48,294 --> 00:21:50,382 05:20 nine's are actually the 570 00:21:51,009 --> 00:21:52,047 the least offensive. 571 00:21:52,605 --> 00:21:55,340 Yes. Yeah. To what contributes to the family 572 00:21:55,479 --> 00:21:55,638 income. 573 00:21:56,436 --> 00:21:58,692 It's, like, 5.56 574 00:21:58,751 --> 00:21:59,251 percent 575 00:21:59,960 --> 00:22:02,104 somewhere around there it might be off I 576 00:22:02,104 --> 00:22:03,692 think you're... I think you've put right on. 577 00:22:03,930 --> 00:22:07,240 Yeah. You mean, whereas if the student was 578 00:22:07,836 --> 00:22:09,507 account was set up for the student in 579 00:22:09,507 --> 00:22:11,973 their name, it's 20 percent. And if you 580 00:22:11,973 --> 00:22:13,586 pull money out of your 581 00:22:14,041 --> 00:22:17,023 04:01 k or your Ira rates, it's 50 582 00:22:17,081 --> 00:22:19,972 percent. Yeah. That... So it really 583 00:22:20,349 --> 00:22:22,900 is a good place to be. So that's 584 00:22:22,900 --> 00:22:23,777 something that 585 00:22:24,589 --> 00:22:28,442 is helpful when people understand that. And for 586 00:22:28,581 --> 00:22:28,900 met, 587 00:22:30,896 --> 00:22:32,892 we've always fought... While you can't use it 588 00:22:32,892 --> 00:22:33,451 out stay. 589 00:22:34,183 --> 00:22:37,200 Ego here. It changes form. Those are the 590 00:22:37,200 --> 00:22:40,218 most common. Mh. It it's interesting to me 591 00:22:40,218 --> 00:22:42,777 that that provision has been around. Forever because 592 00:22:42,857 --> 00:22:44,850 I had I had actually thought Diane that 593 00:22:44,850 --> 00:22:46,605 that was a change in the last 10 594 00:22:46,605 --> 00:22:47,482 or 15 years. 595 00:22:48,439 --> 00:22:50,512 I'm married. So so I was a victim 596 00:22:50,512 --> 00:22:52,680 of that miss forever reception myself there for 597 00:22:52,680 --> 00:22:54,754 a while. Most of our students do stay 598 00:22:54,754 --> 00:22:58,024 in state. You know, there's a this percentage 599 00:22:58,024 --> 00:23:00,258 is quite small that go out state, but 600 00:23:00,258 --> 00:23:03,216 we do have... We've worked with over 2500 601 00:23:03,216 --> 00:23:04,590 different other state 602 00:23:04,963 --> 00:23:08,141 institutions in a few outside the country. If 603 00:23:08,141 --> 00:23:09,118 they are eligible, 604 00:23:09,984 --> 00:23:13,330 to accept federal aid under the Department of 605 00:23:13,809 --> 00:23:16,062 Education in their degree granting, we can pay 606 00:23:16,518 --> 00:23:18,445 out of countries calls too. And we've done 607 00:23:18,445 --> 00:23:19,798 that on a few seconds. 608 00:23:20,515 --> 00:23:22,824 So we talked about some of the mistakes, 609 00:23:23,063 --> 00:23:25,373 Diane, but I'm sure you've seen your share 610 00:23:25,373 --> 00:23:27,544 of 6 assess stories do you have any 611 00:23:27,544 --> 00:23:29,384 that you can share with us? Oh, 612 00:23:29,865 --> 00:23:32,365 we have people coming forward on a regular 613 00:23:32,504 --> 00:23:35,231 basis and what we started... Seeing about 10 614 00:23:35,231 --> 00:23:36,524 years ago was, 615 00:23:37,214 --> 00:23:37,714 the 616 00:23:38,087 --> 00:23:39,063 generational aspect 617 00:23:39,595 --> 00:23:41,285 of people coming to a 618 00:23:41,673 --> 00:23:44,139 My child needs a met contract. My parents 619 00:23:44,139 --> 00:23:46,923 or my grandparents put me through college with 620 00:23:47,082 --> 00:23:48,196 Met and I must. 621 00:23:48,768 --> 00:23:50,201 Do this for my child. 622 00:23:50,758 --> 00:23:53,225 And so I was looking through a a 623 00:23:53,225 --> 00:23:54,657 few of them this morning. 624 00:23:55,135 --> 00:23:56,885 And just as an example, 625 00:23:57,443 --> 00:23:59,768 we had heard couple years ago from a 626 00:23:59,768 --> 00:24:02,979 young man, and he was telling us that 627 00:24:03,754 --> 00:24:04,653 his parents 628 00:24:05,189 --> 00:24:06,959 got him a met a when he was 629 00:24:06,959 --> 00:24:09,116 in middle school, and they told him about 630 00:24:09,116 --> 00:24:11,194 it. Now, this is a another thing we 631 00:24:11,194 --> 00:24:13,591 hear, you know, some parents tell their children 632 00:24:13,591 --> 00:24:15,682 about it and use it as incentive. And 633 00:24:15,682 --> 00:24:17,909 others want to surprise them with it. But 634 00:24:17,909 --> 00:24:18,409 in 635 00:24:19,022 --> 00:24:21,407 his case, they told him about it, and 636 00:24:21,407 --> 00:24:22,997 he just kind of shrugged it off, 637 00:24:23,649 --> 00:24:26,759 you know? Yeah Yeah. Okay. You know what's 638 00:24:26,759 --> 00:24:29,073 that? Yeah. Okay. That's nice. Thanks mom and 639 00:24:29,232 --> 00:24:32,981 Dad. Well, when he was of college age, 640 00:24:33,634 --> 00:24:36,660 He went to Grand Rapids community college for 641 00:24:36,660 --> 00:24:37,137 2 years, 642 00:24:37,854 --> 00:24:40,801 and he enjoyed it. He did well, happened 643 00:24:40,801 --> 00:24:43,521 to meet his wife there. And then they 644 00:24:43,521 --> 00:24:44,976 both went on to 645 00:24:45,430 --> 00:24:48,316 G u to Grand Valley State University. 646 00:24:48,930 --> 00:24:50,282 They both got their degrees. 647 00:24:50,933 --> 00:24:51,433 And 648 00:24:51,806 --> 00:24:54,347 got married after then and what they noticed 649 00:24:54,347 --> 00:24:55,561 was that he had 650 00:24:56,173 --> 00:24:59,507 a lot less college debt, practically no college 651 00:24:59,507 --> 00:25:02,237 debt as opposed to his wife who didn't 652 00:25:02,237 --> 00:25:04,953 have him at. But they're both very successful, 653 00:25:05,113 --> 00:25:07,430 and he has a business now north of 654 00:25:07,510 --> 00:25:10,170 Grand Rapids and his wife works and manufacturing. 655 00:25:10,621 --> 00:25:11,414 And when he had 656 00:25:12,206 --> 00:25:14,267 contacted us, they have a 2 year old 657 00:25:14,267 --> 00:25:16,186 at that point. So it's isn't it's been 658 00:25:16,186 --> 00:25:18,733 a couple years, but they were determined that 659 00:25:18,733 --> 00:25:20,961 he was going to come out like his 660 00:25:20,961 --> 00:25:24,702 dad did with the relatively low college death. 661 00:25:25,353 --> 00:25:27,524 And so that's just 1 of the many 662 00:25:27,581 --> 00:25:28,399 success stories 663 00:25:28,774 --> 00:25:29,887 will hear in a year. 664 00:25:30,524 --> 00:25:31,978 Sometimes people will 665 00:25:32,369 --> 00:25:34,521 when they think about saving for college shelf, 666 00:25:34,919 --> 00:25:36,296 they'll think all or nothing 667 00:25:36,912 --> 00:25:37,412 and 668 00:25:38,028 --> 00:25:40,913 something is better than nothing. So Yeah. You've 669 00:25:40,913 --> 00:25:42,667 got a situation to go in and just 670 00:25:42,667 --> 00:25:45,379 do a lump sum 4 year met contract. 671 00:25:46,575 --> 00:25:49,048 Maybe you do 1 year met. If you've 672 00:25:49,048 --> 00:25:49,846 got children, 673 00:25:50,419 --> 00:25:52,492 If you're gonna be in the situation where 674 00:25:52,492 --> 00:25:54,327 they're close together and you're going to have 675 00:25:54,327 --> 00:25:56,400 2 or maybe even 3 in college at 676 00:25:56,400 --> 00:25:57,198 the same time. 677 00:25:57,916 --> 00:26:00,404 Having a year or 2 of met, for 678 00:26:00,404 --> 00:26:02,182 each of them can make a big difference 679 00:26:02,721 --> 00:26:03,860 because you can 680 00:26:04,878 --> 00:26:07,116 manipulate when you're going to use that to 681 00:26:07,116 --> 00:26:07,515 help out. 682 00:26:08,649 --> 00:26:11,769 Right. In my lifetime, I've dealt with at 683 00:26:11,769 --> 00:26:12,269 least 684 00:26:13,289 --> 00:26:14,909 3 parents of triplets. 685 00:26:16,263 --> 00:26:16,823 Half, man. 686 00:26:17,702 --> 00:26:19,460 And, you know, they're always 687 00:26:20,099 --> 00:26:22,756 very, very happy in taking a a deep 688 00:26:22,816 --> 00:26:25,533 of breath, you know, because they'll come, all 689 00:26:25,533 --> 00:26:28,172 they have to say is, how do I 690 00:26:28,227 --> 00:26:28,544 activate this? 691 00:26:30,128 --> 00:26:30,628 We 692 00:26:31,413 --> 00:26:33,561 no problem. You can do that online now. 693 00:26:33,800 --> 00:26:35,153 It used to be a paper form. 694 00:26:36,267 --> 00:26:38,814 So there's just all kinds of success stories 695 00:26:38,814 --> 00:26:41,294 and ways to look at this. And ways 696 00:26:41,294 --> 00:26:43,461 to look at 05:29 as a tool 697 00:26:43,834 --> 00:26:45,818 to do what you want to do for 698 00:26:45,818 --> 00:26:48,613 your children and for your grandchildren. I love 699 00:26:48,613 --> 00:26:50,705 it. I love that part. It's interesting 700 00:26:51,241 --> 00:26:52,595 so my kids have 701 00:26:53,073 --> 00:26:54,688 Mu plans, and 702 00:26:55,064 --> 00:26:56,577 I have a son who's 12 now. 703 00:26:57,308 --> 00:26:59,293 We have conversations, about I kinda wanted to 704 00:26:59,293 --> 00:27:00,483 use it as a way to, like, teach 705 00:27:00,483 --> 00:27:02,706 him how saving and investing works. And so 706 00:27:02,706 --> 00:27:04,453 we have conversations around it. Well, 707 00:27:05,103 --> 00:27:06,614 as a 10 year old, you know, he 708 00:27:06,614 --> 00:27:08,205 looks at those numbers and he goes, why 709 00:27:08,205 --> 00:27:09,477 can I have that now? I wanna buy 710 00:27:09,477 --> 00:27:09,875 a fishing. 711 00:27:11,306 --> 00:27:13,612 And we have those conversations around, well, future 712 00:27:13,612 --> 00:27:15,697 cohen will be real ups if we spend 713 00:27:15,697 --> 00:27:17,531 all your college money on fishing rights. 714 00:27:18,090 --> 00:27:19,526 And so I kinda use it as a 715 00:27:19,526 --> 00:27:21,599 great way to teach my kids about, like, 716 00:27:21,759 --> 00:27:23,593 saving and investing and how important it is. 717 00:27:23,753 --> 00:27:24,731 So it's just 718 00:27:25,123 --> 00:27:26,956 interesting how people look at that. 719 00:27:27,833 --> 00:27:29,187 So I think we just figured out who 720 00:27:29,187 --> 00:27:31,498 our next podcast guest is gonna be. 721 00:27:32,549 --> 00:27:33,742 Oh, I'm sure he would love it. 722 00:27:37,003 --> 00:27:37,322 Cool. 723 00:27:38,276 --> 00:27:39,094 I'm curious. 724 00:27:39,644 --> 00:27:42,125 With your experience, what do you think the 725 00:27:42,125 --> 00:27:44,684 future holds for college savings plans? You think 726 00:27:44,684 --> 00:27:46,544 there'll be more changes or 727 00:27:47,098 --> 00:27:49,334 more importance put on it? Well, certainly, we're 728 00:27:49,334 --> 00:27:52,367 striving for more importance to be put on 729 00:27:52,367 --> 00:27:52,867 it 730 00:27:53,725 --> 00:27:55,321 because whether it's... 731 00:27:56,611 --> 00:27:59,464 A trade a community college, a degree or 732 00:27:59,464 --> 00:28:00,732 an advanced degree. 733 00:28:02,158 --> 00:28:03,609 The workforce needs 734 00:28:04,239 --> 00:28:04,739 educated 735 00:28:05,198 --> 00:28:06,657 individuals to do 736 00:28:07,036 --> 00:28:07,776 so many 737 00:28:08,315 --> 00:28:10,173 different functions. So 738 00:28:10,552 --> 00:28:11,991 this is a way to help. And yes, 739 00:28:12,151 --> 00:28:14,105 we have to stress the importance 740 00:28:14,724 --> 00:28:17,924 of knowing what opportunities are out there to 741 00:28:17,924 --> 00:28:18,164 help. 742 00:28:18,884 --> 00:28:21,924 I think 05:20 nine's are going to continue 743 00:28:21,924 --> 00:28:22,999 to be flexible 744 00:28:23,534 --> 00:28:24,750 as the face of 745 00:28:25,126 --> 00:28:26,103 education changes 746 00:28:26,877 --> 00:28:28,014 as other 747 00:28:28,708 --> 00:28:29,924 options come available, 748 00:28:30,554 --> 00:28:32,869 as the federal government gives us a greater, 749 00:28:33,987 --> 00:28:34,226 scope, 750 00:28:34,865 --> 00:28:36,621 we're going to adapt to those and make 751 00:28:36,621 --> 00:28:38,617 the most of them. Make the most of 752 00:28:38,617 --> 00:28:39,356 it for 753 00:28:40,068 --> 00:28:42,378 You know, our citizens are children, 754 00:28:42,936 --> 00:28:43,095 everybody. 755 00:28:43,892 --> 00:28:45,666 Absolutely love it. Well, this has been 756 00:28:46,042 --> 00:28:48,034 fantastic, Diana. I could sit here and listen 757 00:28:48,034 --> 00:28:49,960 you tell us stories. All day long. 758 00:28:51,232 --> 00:28:53,142 I could. I do have some work to 759 00:28:53,142 --> 00:28:56,140 do, but no. I appreciate you joining us 760 00:28:56,895 --> 00:28:58,803 is there, what would you tour our listeners? 761 00:28:58,962 --> 00:29:00,233 What would you say is the best way 762 00:29:00,233 --> 00:29:03,493 to get more information about these programs? 1 763 00:29:03,493 --> 00:29:06,368 way is to visit our website, and it's 764 00:29:06,368 --> 00:29:08,905 set with met dot com, 765 00:29:09,936 --> 00:29:11,364 or you can go to. 766 00:29:12,315 --> 00:29:13,212 Mi saves 767 00:29:13,759 --> 00:29:16,240 dot com. And there you'll find 768 00:29:16,559 --> 00:29:18,799 the logos for all 3 programs, and you 769 00:29:18,799 --> 00:29:20,420 could read up on met 770 00:29:20,720 --> 00:29:22,967 me s p and even get some more 771 00:29:22,967 --> 00:29:24,160 direction on Map. 772 00:29:24,876 --> 00:29:27,819 So great sources of information there. They'll give 773 00:29:27,819 --> 00:29:28,217 you 774 00:29:28,868 --> 00:29:31,589 ways to set up 1 on 1 meetings 775 00:29:31,882 --> 00:29:35,055 with met staff with Me staff and talk 776 00:29:35,055 --> 00:29:37,450 more about the programs and you know, how 777 00:29:37,450 --> 00:29:40,705 you get started because course I actually done 778 00:29:40,705 --> 00:29:43,245 mine these days. Yeah. Yeah. Yes. It's very 779 00:29:43,245 --> 00:29:45,960 easy. Yes. You Very cool. I didn't realize 780 00:29:45,960 --> 00:29:46,675 you had so many 781 00:29:47,231 --> 00:29:49,375 resources where you can actually meet with people 782 00:29:49,375 --> 00:29:51,758 too. I think that's fantastic. So... And I 783 00:29:51,758 --> 00:29:53,743 have both of those websites booked bookmark. I 784 00:29:53,743 --> 00:29:56,390 will tell you. So I'm a frequent visitor. 785 00:29:57,188 --> 00:29:57,688 But 786 00:29:59,982 --> 00:30:02,776 Well, with that, Dave Diane, and it has 787 00:30:02,776 --> 00:30:04,786 been applied, diane. Thank you so much for 788 00:30:04,786 --> 00:30:07,418 joining us, and we appreciate all that you. 789 00:30:07,658 --> 00:30:09,492 Thank you for having. Thanks me. I appreciate 790 00:30:09,492 --> 00:30:10,943 it. Diane. It, fun. 791 00:30:12,935 --> 00:30:15,484 Gather around and follow the kitchen table finance 792 00:30:15,484 --> 00:30:17,930 podcast to learn about money and simple ways 793 00:30:18,049 --> 00:30:20,435 you can invest right now. You can find 794 00:30:20,435 --> 00:30:23,799 more practical advice at sr advisors dot com 795 00:30:23,935 --> 00:30:27,314 and contact that for personal planning by emailing 796 00:30:27,450 --> 00:30:29,915 info at sr advisors dot com. 797 00:30:33,495 --> 00:30:33,549 Aim 798 00:30:42,125 --> 00:30:43,184 This is a 799 00:30:43,484 --> 00:30:43,984 media 800 00:30:44,365 --> 00:30:44,605 production.