Kara Financial, LLC Announces Comprehensive College Planning Services

Kara Financial, LLC
Comprehensive College Planning Services

Kara Financial, LLC is proud to announce our partnership with College Funding Solutions, Inc.

The earlier we can work with the student, the more effective the program will be. This program is designed primarily for freshmen, sophomores and juniors; however, we are also able to assist Seniors in their final year as well. If you or somebody you know is concerned with ever-rising college expenses and are looking for answers and guidance regarding the transition process of high school through the acceptance of a college or university, this program can help.

Specifically, some of the services provided are as follows:
• High School Preparation Work
• SAT/ACT Preparation
• Career Planning and College Search Selection Guidance
• College Cost Comparisons
• College Funding History Comparisons
• Help with Private Sector Scholarships
• Maximizing College Grants
• Help in reducing the EFC (Expected Family Contribution)
• Filing the FAFSA (Free Application for Federal Student Aid); help with the CSS/Profile
• Learn how to avoid mistakes and pitfalls in the funding process
• Maximizing the effectiveness of Campus Visits
• Flow Charts & reminders to keep the student & family on track
• Unlimited access to your consultant when questions arise
• Evaluation of Award Letters and help with Appeal Letter (if appropriate)

College Funding Solutions, Inc. will do all of this and more. Eliminate the worries and stress
involved; even make paying for college easier on the family’s budget.

Did you know that of the 3 million new students who begin college each year, less than 50%
attain a 4-year degree? That is right. Only about 48% will ever receive their degree! Why
are so many students forced to drop out? The number one reason is money! They didn’t
plan to fail. They simply failed to plan.

We don’t offer any wild promises or quick fixes. Instead, this is a proven program designed
to provide the answers and guidance required to make that transition from high school to
college much smoother.

Please contact us to arrange a FREE family interview.
Call (855) 789-9539 or email at kara@karafinancial.net

Taking a closer look at the Roth IRA

Wouldn’t it be nice to have an account available to you where you can put money in and:

  • Earn a higher interest rate than a traditional bank savings account
  • Pull your money out when you need it without [IRS] penalties
  • NOT be forced to have to take the money out when you’re 70 ½ (and still be able to contribution after 70 ½)
  • AND….Be TAX FREE to you in retirement and/or when passed along to your beneficiaries at your death?

If you’re looking for any of these options, then a Roth IRA may be your best option!

Roth IRA Basics:

  • Contributions are made with after-tax funds and a not deductible (like Traditional IRAs)
  • You can make contributions after 70 ½ (so long as you have earned income)
  • There is not Required Minimum Distributions on Roth IRAs, so you can leave amounts in your account as long as you live
  • Qualified Distributions are Tax-Free!

Now, not *everyone* can contribution to a Roth IRA. However, if your AGI is less than $193,000 and you’re filing Married Filing Jointly, OR less than $122,000 and you’re filing Single, Head of Household, or Married Filing Separately and did NOT live with your spouse at any time during the year, than you can contribute the full limit of $6,000 ($7,000 for those 50 and over) for 2019.

Over these limits you will either have a reduced amount you can contribute OR not be able to contribute at all. Also, contributions limits to Traditional IRAs and Roth IRAs are aggregate, so you can only do a TOTAL of $6,000 ($7,000 for 50 & over) between IRA and Roth if you happen to be contributing to both types of plans. (check out IRS publication 590-A for further information)

What makes a Distribution a “Qualified Distribution”?

  • Distributions made after the 5-year period from the first taxable year in which a contribution was made to set up a Roth for your Benefit. (Note: the clock starts ticking then and does not restart if you change/switch accounts or open another Roth IRA somewhere else)
  • The payment/distribution is:
    • Made on or after age 59 ½
    • Made because you are disabled (defined by the IRS)
    • Paid out as a Death Benefit to your Beneficiary(ies)
    • Meets the requirements listed by the IRS under their First-Time Home buyer exception (up to $10,000 per buyer)

If your distribution does not meet any of the options listed above, the GAINS on the Roth IRA are taxable and assessed a 10% pre-mature distribution penalty by the IRS. One very important thing to note is the taxation and subsequent additional 10% tax penalty is on the GAINS of your Roth IRA only. Contributions are NOT TAXABLE to you because you’ve already paid taxes on them. Additionally, those contributions are what come out FIRST when you take a distribution, so you are able to withdraw funds from your Roth IRA if you need to UP TO your total contributions with no tax consequences or IRS penalties.

Setting up a Roth IRA is Simple and Easy!

You do not have to contribute the entire $6,000 to establish a Roth IRA. You can start a Roth IRA for as little as about $50 per month. (That’s $12.50/week or about the cost of a Dunkin Donuts Coffee per day!) You have a ton of account options to choose from, so you can find the investment that fits your individual need. Plus, setting it up for automatic contributions each month will help you to “set it and forget it” and stay on track for your retirement goals!

Here’s to a Tax-Free Retirement!

5 Key Factors of Your Credit Report

  1. On-time Payments: Showing a good history of paying your bills on time is important. That’s a given, right? Keep in mind that even 1-2 late payments can take your credit score down.
    • TIP: Set your monthly bills up on Auto-Pay for at least the minimum amount due – you can always adjust the amount to pay before the payment hits for a larger payment or make an extra payment to pay it down/off faster, but this way you at least know you have stream-lined the payment to be paid on time each month.
  2. Credit Utilization: This is the Percentage of your available credit that you are using. Ideally, this percentage should only be between 10-30%.
    • TIP: Paying down debt is a great way to lower your credit utilization, but it takes extra money you may or may not have. Look also to expand capacity – the easiest way is to ask your current credit card company(ies) for a credit line increase (and then DO NOT USE it). You can also try applying for another credit card with no annual fee, etc. that you do not intend to use*(see #4 below)
  3. Having a Mix of Credit
  4. Not Actively “Looking” for a Bunch of Credit and/or Applying to More than One Credit Line at time: Too many inquiries in short period of time can lower your score.
    • TIP: If you’re looking for a credit line to use or to expand capacity – Do Your Research! Look at various cards and offers before applying for anything. Use a source like www.cardhub.com find cards that also fit within your credit score for a better chance of approval.
  5. Length of Credit Relationships: The longer the relationship the better.
    • TIP: Think twice before closing out a credit card after you pay it off, especially if you have had it for a long time. If there is no annual fee and no cost to keep it open at a $0 balance, then keep it open. Another idea to keep it open and active (especially if there is some kind of rewards on the card you want) is to pay your monthly bills with it – and pay it off at the end of each month. However, if you think you would be tempted to “run it back up”, then cut the card up so you can’t use it.