Why UGMA/UTMA Accounts Are the Perfect Holiday Gift

If you have a special child in your life, you may be wondering what to put under the tree this year. One long-lasting and truly meaningful way to show the child in your life that you care is by taking a few minutes to set up a UGMA/UTMA account and give them a leg up in life.

The earlier you open a UGMA or UTMA account for a child, the longer your initial gift has to grow, thanks to the magic of compound interest. For example, investing just $5 a day from birth at an 8% return could make that child a millionaire by the age of 50. By setting up a UGMA/UTMA account, you’re really giving your beneficiary a present that grows all year round. Now, that’s a gift they’re sure to remember!

What is a UGMA/UTMA account?

UGMA is an abbreviation for the Uniform Gifts to Minors Act. And UTMA stands for Uniform Transfers to Minors Act. Both UGMA and UTMA accounts are custodial accounts created for the benefit of a minor (or beneficiary).

The money in a UGMA/UTMA account can be used for educational expenses (like college tuition), along with anything that benefits the child – including housing, transportation, technology, and more. On the other hand, 529 plans can only be used for qualified educational expenses, like summer camps, school uniforms, or private school tuition and fees.

 

It’s important to keep in mind that you cannot use UGMA/UTMA funds to provide the child with items that parents or guardians would be reasonably expected to provide, such as food, shelter, and clothing. Another important point is that when you set up a UGMA/UTMA account, the money is irrevocably transferred to the child, meaning it cannot be returned to the donor.

 

Tax advantages of a UGMA/UTMA account

The contributions you make to a UGMA/UTMA account are not tax-deductible in the year that you make the contribution, and they are subject to gift tax limits. The income that you receive each year from the UGMA/UTMA account does have special tax advantages when compared to income that you would get in a traditional investment account, making it a great tax-advantaged option for you to invest in the child you love.

 

Here’s how that works. In 2020, the first $1,100 of investment income earned in a UGMA/UTMA account may be claimed on the custodian’s’ tax return, tax free. The next $1,100 is then taxed at the child’s (usually much lower) tax rate. Any income in excess of those amounts must be claimed at the custodian’s regular tax rate.

A few things to be aware of with UGMA/UTMA accounts

While there’s no doubt that UGMA/UTMA accounts have several advantages and a place in your overall financial portfolio, there are a few things to consider before you open up a UGMA/UTMA account:

 

  • When the child reaches the age of majority (usually 18 or 21, depending on the specifics of the plan), the money is theirs, without restriction.
  • When the UGMA/UTMA funds are released, they are factored into the minor’s assets.
  • The value of these assets will factor into the minor’s financial aid calculations, and may play a big role in determining if they qualify for certain programs, such as SSDI and Medicaid.

Where you can open a UGMA/UTMA account

Many financial services companies and brokerages offer UGMA or UTMA accounts. One option is the Acorns Early program from Acorns. Acorns Early is a UGMA/UTMA account that is included with the Acorns Family plan, which costs $5 / month. Acorns Early takes 5 minutes to set up, and you can add multiple kids at no extra charge. The Acorns Family plan also includes  Acorns Invest, Later, and Spend so you can manage all of the family’s finances, from one easy app.

 

During a time where many of us are laying low this holiday season due to COVID-19, remember that presents don’t just need to be a material possession your loved one unwraps, and then often forgets about. Give the gift of lasting impact through a UGMA/UTMA account.

The post Why UGMA/UTMA Accounts Are the Perfect Holiday Gift appeared first on MintLife Blog.

Source: mint.intuit.com

How To Balance Working And Going To College

5 Tips For Working Students In CollegeMore and more are choosing to attend college and work at the same time.

Whether you are working a part-time or a full-time job, it can be tough to balance both. There are many working students in college who are able to manage both, but there are also many who aren’t able to.

If you don’t balance them both correctly, it may lead to stress, lower grades, low-quality work being produced, and more.

No one wants that and I’m sure you don’t either.

Related: 21 Ways You Can Learn How To Save Money In College

This is supposed to be the time of your life where you are growing and changing, not feeling like you are drowning in everything that is going on around you.

There are ways to get around it and manage both successfully at the same time, though.

I took a full course load each and every semester, worked full-time, and took part in extracurricular activities. It was definitely hard and I won’t lie about that. However, sometimes a person doesn’t have a choice and has to do everything at once or maybe you are choosing to multi-task and you are wanting to better manage your time.

Related post: How I Graduated From College In 2.5 Years With 2 Degrees AND Saved $37,500

Whatever your reason may be, below are my tips for working college students. The tips below are what helped save me!

 

Carefully plan your class and work schedule.

My first tip for working college students is to carefully plan your class and work schedule.

Some students just choose whatever classes are offered. However, it is much wiser to carefully craft your school and work schedule so that everything flows together efficiently with minimal time wasted.

You can do this by researching into what classes are offered when and trying to eliminate any gap that may be in-between each class. Having an hour or two break between each class can quickly add up. Also, if you happen to have time off between classes, then using this time to do your homework and/or study can be a great use of time as well.

Related post: How I’m a Work-Life Balancing Master

 

Eliminate any time that may be wasted.

There are many time sucks that you may encounter each day. A minute here and a minute there may add up to a few hours wasted each day.

The time you save could be used towards earning more money at your job, studying, socializing, or whatever else it is that you need or want to do. For working college students, every minute is important.

There are many ways to eliminate any time wasters including:

  • Cut down on your commute time. If you can find a job near your college campus then you can eliminate a lot of traveling time.
  • Prep your meals ahead of time. If you can bulk make your meals instead of individually making each one, you will be able to save a lot of time.
  • Be aware of how much time you spend on social media and TV. The average person wastes many, many hours on social media and watching TV. Cutting back on this may save you hours each day without you even realizing it.

Related post: 75 Ways To Make Extra Money

 

Separate yourself from distractions.

Working college students experience a lot of distractions.

Noise in the background, such as with a TV that is on or a party your roommate may be throwing, can distract you from what you need to be doing. If you are trying to study or do homework then you should try to find a quiet place to get work done.

You may want to close your bedroom door, hide the remote from yourself (trust me, this works!), go to the library, or something else.

Related: 16 Best Online Jobs For College Students

 

Have a to-do list and a set schedule.

Having a to-do list is extremely helpful for working students in college because you will know exactly what has to be done and by when. You will then have your responsibilities sitting there right in your face so that you will have to face reality.

Plus, I know that when I am stressed it can be easy to forget things, so having a to-do list eliminates any valuable minutes I may waste debating about whether I forgot to do something.

 

Working students in college need to be realistic.

While one person may be able to work like crazy and attend college at the same time, not everyone can do that.

If your grades are dropping, then you may want to analyze whether you should drop your hours at work or school. What is more important to you at this time and for your future?

With the tips above for working students in college, you’ll be able to rock both your job and your college classes at the same time. Don’t forget to fit in time for fun as well. Good luck!

Are you one of the many working college students out there? Why or why not?

 

The post How To Balance Working And Going To College appeared first on Making Sense Of Cents.

Source: makingsenseofcents.com

Does Renters Insurance Cover Storm Damage?

Your apartment comes with precautions like smoke and carbon dioxide detectors and alarm systems. But what about extreme weather events and natural disasters?

Your landlord’s insurance may only cover the building structure. But you’ve done your due diligence and signed up for renters insurance, insurance coverage that protects you and your belongings inside your rental.

But depending on the natural disaster, your policy could not be exhaustive enough and provide you with enough coverage. Sure, a tornado may be included, but not a big flood or landslide.

According to esurance, the average renter owns about $20,000 in personal property. That’s a lot of valuables, many of which are unable to be replaced.

Learn more about what kind of storm damage renters insurance covers — and what it doesn’t — and how to make sure you’re covered. If you’re not sure about your coverage, don’t hesitate to reach out to your insurance agent.

You’re covered for these

Most renters insurance policies cover damage from hail, lighting, windstorms, wildfires and the weight (think ceiling/roof) of ice, snow and sleet.

These perils, as they’re called by the insurance company, are often covered and you may receive a reimbursement to replace your damaged items.

If the wind breaks a window and your living room furniture gets ruined from the hurricane-force winds, you may be covered under your policy.

When speaking to your agent, depending on how bad the storm damage is, make sure that your policy covers alternative housing while repairs are ongoing. Your renters insurance may pay for you to stay at a hotel in the meantime.

You’re not covered for flood damage

Nearly 41 million Americans currently live in flood zones. But renters insurance does not cover flood damage, just water damage caused by appliances.

If there’s a high risk of floods in your area, consider an umbrella flood policy to protect yourself and your belongings. First, use the FEMA Flood Map to identify your area and its risk of flood.

If you need protection, the National Flood Insurance Program, a community program insurance policy, offers access to participating flood insurance providers. Before signing, ask how soon until the policy goes into effect — 30 days is the standard.

The flood policy will help you return your property to pre-flood conditions, according to FEMA.

flooding

Or earth movement

Half of U.S. residents are at risk for damage from an earthquake, according to the United States Geological Survey’s (USGS). Most people think of California and the Pacific Northwest. But there are many spots around the country that exhibit earthquakes with enough magnitude to cause damage. Just last December, scientists recorded a 4.4 earthquake in Tennessee.

Earth movement doesn’t only include earthquakes, but also landslides and volcanic eruption. None of these events are included in your renters insurance coverage.

Depending on your home’s location, you may consider buying an additional policy for earthquake, landslide or earth movement protection. According to USAA, there are grants available in California to discount the price of earthquake insurance.

For landslides, an additional policy is required. It’s based on the property’s slope, house value, closeness to nearby mountains and hills and frequency of landslides. It’s expensive so be sure that your home needs it before pulling the trigger.

Choosing reimbursement

The main issue will be replacing your valuables after the storm damage. When looking for the best policy for you, talk to your agent about the benefit of replacement cost coverage vs. actual cash value coverage.

Depending on your items, one may be better than the other. Replacement reimbursement gives you the value amount for the item as if it was purchased today. The actual cash value is the depreciated value of it before the damage occurred.

How can your property manager help?

After the incident, follow up with your landlord or property manager to confirm the timeline of repairs. If the storm damaged the outside of the structure and deemed your home less than optimal for living, inquire about reimbursement for alternative living costs.

Inventory all damaged belongings once it’s safe to do so after the storm. Let your landlord know that you’re coordinating as well with your renter’s insurance. You’ll be glad that you have an up-to-date policy to help you get back on your feet during this scary time.

The post Does Renters Insurance Cover Storm Damage? appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.

Source: apartmentguide.com

How To Clean An Iron To Make It Look Brand New

Cleaning an iron is a household task that’s easy to forget about. However, with all the shirts to press, sheets to smooth and pants to unwrinkle, it’s no wonder our irons get worn out. Giving your iron the TLC it needs can be simple and way cheaper than opting for a newer model.

There are many different ways to clean and shine your iron using some elbow grease and a few items you may already have in your home. Keeping your iron clean is necessary to keep the chore easy and productive, so check out these tips to clean an iron without any fancy cleaning products required.

1. Clean with baking soda

Baking soda is used to clean almost anything, whether it’s your household appliances, fruits and veggies or your iron. You can create a stain-fighting paste using two tablespoons of baking soda mixed with one tablespoon of warm water. Gently rub the paste on a cool iron plate, coating areas that have mineral deposits. Wipe the paste off using a damp cloth.

Pro tip: Avoid getting the paste in the iron’s steam holes. If you manage to get it in there, use a damp cotton dipped in distilled water or a wooden toothpick to clean it out.

2. Clean with sea salt

person filling up water tank in an iron

Believe it or not, using salt to clean your iron can get the job done. Turn your iron on the hottest setting and lay out a brown paper bag or newspaper on your ironing board. Sprinkle a generous amount of salt over the paper bag or newspaper and begin to iron the salty surface. Continue this process until the salt takes away all the dirt on your iron. After this, wipe the salt residue away with a damp cloth.

Pro tip: Iron in circular motions to maximize the amount of dirt you take off.

3. Clean with a towel and vinegar

If your main issue with your iron is corrosion, the towel and vinegar trick will make it look good as new! Soak a towel in vinegar and then set the iron onto the towel with the soleplate facing down. Let the iron sit in the vinegar-soaked towel for 30 minutes before wiping it down.

Pro tip: Place your soaked towel in a bin or other container to avoid vinegar seeping into unwanted areas.

4. Clean an iron’s steam holes

person steaming their iron

A common problem with dirty irons is the steam holes getting clogged. A good indication of some much needed cleaning is when the iron sputters and leaves mineral-filled or rusty water spots on clothing. Mix ½ cup of vinegar and ½ cup of distilled water into the iron’s reservoir and inspect the steam ducts in an upright position.

Use an old toothbrush, wooden toothpick or cotton swab to clear away build-up. Test the iron by heating it up and depressing the steam button until the steam flows out freely. Let the iron cool before pouring out the mixture into the reservoir.

Pro tip: Never use metal to clean the soleplate of your iron as this could scratch or damage it.

5. Clean with nail polish remover

Not only does nail polish remover clear away nail polish, but also the gunk on your iron plate! Heat up your iron and dip a cotton ball into some acetone nail polish remover. Use a heat-protecting glove like an oven mitt and wipe the cotton ball along the surface of the hot iron. This method helps dissolve any unwanted residue on your iron. Let your iron cool and wipe away excess nail polish remover.

Pro tip: Perform this cleaning method outside so that your household doesn’t breathe in the strong chemical fumes.

6. Clean with paracetamol

An unusual yet excellent hack for cleaning your iron (especially with burnt residue) is paracetamol (like Tylenol). In fact, any acetaminophen tablet will do. First, turn your iron on the highest setting. Once the plate is hot, use an oven mitt or other heat-protecting glove to press the pill directly onto the burnt area of your iron. The pill should melt into a gel which then dissolves the burnt spot on your iron. Use a damp cloth to clean the soleplate and repeat if necessary.

Pro tip: Don’t use tweezers or pliers to press the pill onto your hot iron. One slip could result in scratching your iron or burning your fingers!

7. Clean an iron with wax paper

someone holding an iron upright

Similar to the salt trick above, you can use wax paper with coarse salt to clean your iron. Place wax paper on your ironing board or a cutting board and sprinkle about a tablespoon of sea salt over the wax paper. Heat the iron to its highest temperature and iron the salt without applying much pressure. The residue will stick to the salt and your iron will be good as new!

Pro tip: Make sure the steam function is off while you perform this cleaning trick.

8. Clean with toothpaste

Toothpaste not only clears the plaque on your teeth but the muck on your iron as well. All you need to do is smear a small amount of white toothpaste on any affected areas on your iron’s soleplate. Leave the toothpaste there for a few minutes before wiping it away with a clean cloth.

Pro tip: Finish things off by filling your iron’s reservoir with distilled water and setting it down on a towel. Steam your iron leaving in for an additional few minutes to work through.

9. Clean with dryer sheets

Iron assisting with laundry

Dryer sheets have more uses than freshening up your drying clothes. One way to use a dryer sheet you may not have heard of yet is to clean your iron. Simply rub the soleplate with dryer sheets while the iron is on its lowest heat setting. As soon as you feel the dryer sheet get too hot, grab a fresh one. Repeat this process until the iron is clean.

Pro tip: It’s always a good idea to wear a heat-protecting glove or mitt when touching an iron soleplate. You should be fine while in the lowest setting, but be cautious.

10. Clean an iron with ice cubes

If you accidentally left your hot iron near something plastic, you probably have a bit of a mess to deal with. However, melted plastic is easy to get off an iron by using simple items like a big bowl, ice cubes and a plastic knife or spatula. Place your iron in a bowl or pan full of ice to harden the plastic. If your plastic is already hardened, you can skip this step. Now take a plastic knife or spatula and scrape the plastic away, then wipe it down with a damp rag until you feel the iron’s surface to be smooth.

Pro tip: It’s crucial to get plastic off your iron before you use it again, otherwise the plastic will melt into your garments.

How often should I clean my iron?

The answer to this question heavily depends on how often you use your iron. On average, you should make it a habit to clean your iron every other month to remove mineral deposits. If your iron begins to dull or you see any build-up on the soleplate, then you can do a quick cleanse to avoid having to do a deeper clean.

What is the black stuff on my iron?

someone wiping down their iron

Most people notice their iron is dirty when they see “black stuff” on the soleplate. The “black stuff” you see is a result of burn marks, dirt, dust, spray starch and fabric fiber buildup. Additionally, if you leave water inside your iron, it could begin to rust cause rusty spots. It’s important to maintain your iron to avoid it from damaging or ruining your clothing.

Maintaining a clean iron

To maintain a clean iron, there are a few things to consider. First, try using distilled water rather than ordinary tap water in your iron. Tap water contains minerals which over time results in rust and mineral build-up. Another consideration to avoid rust and mineral build-up is to make sure you empty the reservoir and place it in an upright position before storing it in your laundry room.

To keep your iron’s soleplate sleek and shiny, never iron over metal zippers, buttons, snaps or any other decorative item. The plate will last much longer and keep your iron maintenance low. Maintaining an iron may seem low on the to-do list, but it’s a great laundry hack that will save you a lot of time in the long-run.

The post How To Clean An Iron To Make It Look Brand New appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.

Source: apartmentguide.com