it

Is It Too Late For Me To Start Investing For College?

Malisha is with us in Maryland yeah

probably I can't get it to turn off so

my bad I hit the wrong one

all right Malisha is here in Maryland

I'm Alicia how are you good afternoon I

am great nice to talk with you days sure

how can I help my question is my son is

16 in the 10th grade hopefully going to

the 11th is it too late to invest in the

529 here in the state of Maryland well

you could but it's not gonna do much

okay so because here the point of the

529 is it grows tax-free your son is how

old again 16 he just turned 16 we got we

got two years all right and so you put

$10,000 in and it grows 10% it made

$1000 and the thousand dollars is not

taxable so this is a hundred and fifty

dollar discussion $200 discussion it's

not it's a it doesn't really it doesn't

really break the bank that you're taxed

for this two year period of time so you

can do it it won't hurt anything unless

he didn't use the money for education

and then you've gotten yourself set up

into a penalty but the the growth is not

going to be substantial so the tax

savings due to the 529 is not going to

be substantial does that make sense yeah

that makes sense

and I kind of figured it was too late

I'm too late to save money for college

it's just the 529 doesn't give you any

big tax benefit because it's - you're

not gonna have a lot of growth it's too

late to have a lot of growth oh yeah

yeah but it's not to like to throw a

bunch of money aside for college and get

the kid into school and get him into

something and get a Ford that you pay

cash for right well I have a back-up

plan and I don't make a lot of money I'm

45 I'm trying I'm trying to purchase my

first home and I only grows about 50 52

thousand a year and I do have debt so I

have money set aside for a home but I'm

hoping that I can apply for as many

grants as I can get involved some

city I have about 5,000 satisfied I have

just about 3,000 and my son savings

account that I put aside myself which

was very difficult but I did it and in

like a lot of other folks I do live

paycheck to paycheck but I'm okay there

is no that do you have about fourteen

thousand you don't need to buy a house

travel stop you don't need to buy a

house to get rid of that mmm-hmm I've

heard you say that yeah you knew I was

going to say it so let's get rid of the

debt let's get the emergency fund bill

let's get you on a tight budget so

you're not living paycheck to paycheck

to accomplish some of these goals we'll

look for extra income and begin to clear

your debts out of there and then we can

be in a position to maybe just some cash

out of the budget help him as he goes

along

okay now let's switch gears don't switch

gears and talk about him okay

he's your single mom yeah you make

$50,000 in Baltimore

he's going to qualify for a lot of

different kinds of scholarships even

some need-based stuff so he is now and

you are now in the get him some

scholarships business like I want you to

apply I want him to apply for a thousand

scholarships between now and the time he

graduates I'm not exaggerating one

thousand of them

he'll get turned down for most of them

he'll get a bunch of free money he also

needs to get his butt out there and get

a job and he's gonna be working the

whole time he's in school he also needs

to pick a school that he can afford

which is the cheapest school out there

cuz he's broke there's nothing wrong

with that is exactly what I did when I

went to school a lot of people did that

hold on I'm gonna send you Anthony

O'Neal's book to show you exactly how to

do this without any student loan debt as

a broke single mom it's called debt-free

degree I'll show you how to do it he

doesn't have to have debt he can go to

school