Ask Dave Duncan...

     At Duncan Financial Group,
 

  Question:

  I’ve heard that contribution limits are going up for   IRAs for people over age 50 this year. Is that true?

  Answer:

  Yes, starting 1/1/02, people over age 50 can put additional contributions, generally called “catch-up”, into not only IRAs, but also 401(k)s and other qualified plans. Now is an excellent time to review your contributions amount to see if an increase would be beneficial.

  Question:

  Given all that has occurred over the past two years with the stock markets and economy, should I be concerned about the future of my stock portfolio?

  Answer:

  Yes, you should. In fact, in my 22 years of experience as a financial planning professional, I  can think of no time when there wasn’t some reason to be concerned about your stock portfolio. However, the past has taught me that sticking with a diversified portfolio of stocks and other types of investments, such as bonds and money market instruments, will serve you very well over time. The key is to be patient and disciplined through the inevitable market down swings

  Question:

  I have heard that Section 529 Plans are an excellent way to save for college. Is that true?

  Answer:

  Yes, it is. Although individual circumstances may dictate that some other method for college savings may be appropriate for some people, it is fair to say that a significant majority of people may benefit by utilizing a Section 529 Plan for saving for theirs children’s college educations These provide a significant income and estate tax benefits to the donor. You must, however, at least consider a UGMA accounts, Educations IRAs, as well as regular mutual fund accounts.