183-Friday Q&A: Response to Ep. 181, Dividend Strategy in 529 Plans, Group Life Insurance vs. Individual, Lowering the Cost of Home Ownership, and Exceeding 401(k) Contribution Limits

Radical Personal Finance

Joshua J. Sheats, MSFS, CFP, CLU, ChFC, CASL, RHU, REBC, CAP

Self-improvement, Business, Education, Investing

4.2 • 1.9K Ratings

🗓️ 24 April 2015

⏱️ 91 minutes

🔗️ Recording | iTunes | RSS

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Summary

Today I handle your questions and comments.

Right off the bat, I respond to some of the sharp criticism of Episode 181. Perhaps it will be useful to clarify my intention with the show material.

Then, I answer these questions:

35:48 Dear Joshua, I have a question regarding a specific method for paying for my children's college education. Putting aside the merits of a college education in general; and putting aside thoughts that I have no obligation to pay for my children's school....let's assume that I would like to pay nearly all tuition expenses for my three daughters (ages 12, 10, 5). I see 529 plans as piggy banks that I fund, will one day need to break, spend, and never see again. However, striving to create a large enough portfolio of dividend paying stocks seems like a option in which I could pay tuition with the money strictly generated from my investments. Assuming (still a moderately big assumption on my end) that I can create the principal to generate ~$25,000 in dividends at a 4% yield, does this seem like a viable option? -Brian
44:04 Joshua, I am 42 years old and currently have life insurance from my employer. I'm trying to buy life insurance from one of the providers but have the following questions: Should I continue the life insurance at work even after I get from outside? Will the 2 ever be mutually exclusive? Should I search for an agent? If so, are there any websites that can help me find one? Are websites like Accuquote reliable? How else should I compare the products of various providers? -Vikram
1:01:52 Joshua, I wanted to ask you to consider a podcast show around radical ways to lower the cost of owning a home. Not the typical advice out there, but more along the lines of buying a property that meets your families needs but that could provide rental income to offset your mortgage too. Cash flow around homes is a large percent of take home for most families - just seems like an area that most people are not considering and could be a significant win. -Todd
1:20:16 Joshua, While listening to Podcast #36 you mentioned changing a 401K plan to be able to defer more than the $17.5K. Can you let me know where I can learn more about this? -Harout

Enjoy the show!

Joshua

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Transcript

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0:00.0	Friday,
0:02.0	and a today, got four questions lined up for you.
0:04.0	Let's see if I get through them all.
0:05.0	Number one, question on 529s,
0:08.0	how to effectively use them
0:10.0	from the purpose of just simply pulling dividends out
0:12.0	to pay for your kids
0:13.2	college, how to find and decide on various types of life insurance coverage, how to
0:18.1	lower the cost of owning a home, and what are the actual 401k contribution limits, and how does it work when you want to put more than the $17,500 in there?
0:28.0	Oh, and before we do that, a few responses to recent episode 181.
0:36.7	Not most of the audience didn't really seem to enjoy it.
0:39.8	What is Joshua's response?
0:41.6	Stay tuned. Welcome to the Radical Personal Finance Podcast. My name is Joshua Sheets and I'm your host and today is Q&A.
1:04.4	It ought to be a little bit fun. Some of these questions are interesting.
1:07.6	Most of the questions are fairly uncontroversial, but I will address a little bit of the feedback that came from recent episode 181.
1:15.6	It's the first time of any of the shows that I've done where it seems like almost nobody liked the show.
1:20.3	So what does a content producer do when nobody likes their show?
1:24.0	The way I see it, you got a couple of questions, you going to ignore it and just move on you can address it and change something or you can address it not change something and so I figured well I I probably owe just a couple little bit of feedback here to the content of the show.
1:43.6	In case you haven't heard it, episode 181 was a discussion of why we need more discussion
1:49.2	of politics and religion and philosophy and morality and ethics in modern financial
1:56.6	conversation and it certainly didn't seem to be a very well-received show.
2:01.3	I've gotten a couple of positive comments but for the most
	...

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