Local is nice if you want face-to-face, but it’s not required. If outside the state, the adviser must simply be registered to provide advice in that state.

Lots of good points, Kristin. A few clarifications/corrections:

Simple - just choose where marginal tax rates will be at that time using this handy chart below. :) But seriously, you cannot - you have to make assumptions and spread your risk out.

You’re right, you shouldn’t let the tax tail wag the savings dog. Mainly, you diversify the best you can and make adjustments as the rules change. That part will never go away.

I know it’s semantics, but the “tax free” terminology for a Roth refers to the treatment of gains in the account, vs. the treatment of gains in a Traditional IRA (taxed at ordinary income rates at the time of withdrawal).

You cannot make contributions to a Traditional IRA after age 70 1/2 (though you can into a Roth). You can retire later, but you will have to start taking Required Minimum Distributions (RMDs) out of the Traditional IRA the year after you turn 70 1/2.

One benefit of having the two types of IRAs is exactly that, Dranzerk. It can be a way to give yourself some “tax diversification”. If taxes are relatively high (historically speaking) in retirement, you can pull from the Roth IRA without increasing your taxable income and allow the money in the IRA to continue to…

Here are some real numbers I’m looking at from a client of mine. At the time, 38 year old female in good health. Putting about $300/mo into WL65 (premiums stop at age 65). Total of $102k in lifetime premiums on a $250k death benefit.

You seem to be pretty sure of your opinions, so I doubt I will change your mind, but to address some misconceptions you have:

You could miss out on a good adviser, SaveTheManualsNow. Though I am a fee-only planner (no product sales) now, I started my career as a financial planner with a firm that could sell insurance. As I mentioned in an earlier comment,

I was with you until the last statement, JullusTheodore! Commission isn’t inherently bad - I think the worst part about it (I operated under it for my first 7 years in the business) is that the true costs (sales commission, 12(b)-1 fees, expense ratios, etc.) are rarely laid out in front of the client. And yes,…

I’m not a fan of the rule either; I would LOVE to be able to put client testimonials on my website!

You are correct that you cannot judge a planner’s character by their compensation method - a schmuck is a schmuck and every compensation style can be “gamed”. However, the other metrics you mentioned can also be misleading.

Funny timing...yesterday I launched an updated version of my site with a page dedicated to explaining the different forms of compensation, how they work for you or against you, the impact it can have, etc.

Congratulations on the new baby from a fellow Texan!

If a child does not use a 529 plan, all is not lost. The funds can be changed to a different beneficiary (like a sibling, cousin, etc.), the funds can be used by the parent for education, or worst case, by withdrawing the funds the gain (NOT the full amount, only the amount above your contributions) would be subject…

They are not the same - each one is run by a fund company, and differ on investment options, and expenses. Some states have a sales tax credit for using an in-state plan, while others do not. Low-cost 529 plans include those from Vanguard, and a great advisor-led plan is run by American Funds out of Virginia.

They are still valuable, though you do lose some of the benefits of long-term tax-deferral. Make sure you have a cash reserve for yourself first, but then you can still certainly start a 529 plan!

You cannot create a 529 plan without a beneficiary (and their social security number). However, you can either start saving outside a 529 plan and then contribute after the baby is born, or if you have another child, you can contribute in their name and then transfer some into a new 529 when the baby is born. Good…

You are not limited in using your own state’s plan, though some states do provide state tax incentives for using an in-state plan. The contribution limits are $14k per person, per beneficiary, so a married couple could contribute $28k/year per child.