529 Education Savings Plan

Under the Tax Cuts and Jobs Act of 2017, the new law expanded the definition of qualified distributions for a 529 plan. Under previous law, qualified distributions were distributions for tuition, books, room & board, fees and supplies for higher education. Qualified distributions were tax-free at the federal and state level and avoided a 10% federal penalty. With the tax …

Falling Behind

It should come as no surprise that delinquencies on student loans have been on the rise given the dramatic increase in student loan debt outstanding.  As we can see from the graph below, the delinquency rate on student loan debt is now more than the rate on credit cards and mortgages and has been increasing since before the recession.  A large portion …

What CPI Tells Us About Prices

The FED justified its aggressive monetary policy in 2010 as a way to “promote a stronger pace of economic recovery”. Have prices risen in the last 15 years because more dollars are chasing fewer goods? This chart shows a cumulative increase in price on a percentage basis indexed from 2000. For reference, a growth of 2% annually (the FED’s current …