529 plans have emerged as a powerful tool for families planning future education expenses These specialized savings accounts were introduced by Congress in 2001 and offer a unique combination of tax advantages investment growth and flexibility making them an ideal choice for families and individuals looking to invest in the future of education, Investments in a 529 plan grow tax-free meaning that any investment income or capital gains will not be taxed as long as withdrawals are used for qualified education expenses While there isnt a federal tax deduction for contributions many states offer tax deductions or credits on state income tax for contributions to their states 529 plan Its important to understand the specifics of funding…, Ways to fund 529 plans, Funding a 529 plan can start with as little as a few dollars and grow substantially over time thanks to the power of compounding interest and strategic contributions, Consistent contributions,  Like any long-term investment 529 plans thrive on consistency Regular scheduled contributions can turn modest sums into significant savings thanks to the compound interest effect Setting up automatic transfers from a checking or savings account ensures you stay on track without thinking about it each month, Gift contributions,  Transform birthdays holidays and graduations into opportunities for educational investment 529 plans often allow for gift contributions which means relatives and friends can contribute directly to your or your childs future education, Lump-sum contributions,  Windfalls tax refunds or bonuses present a golden opportunity to boost your 529 plan balance In 2025 you can gift up to $19000 per recipient without those contributions counting toward your lifetime gift tax exemption So if you have three kids and three 529 plans and are a single parent you can contribute $19000 each or $57000 total in a year without having to report those contributions to the…, What can 529 plans be used for, The timing of distributions from a 529 plan is crucial to ensure they align with the payment of qualified education expenses To avoid penalties and taxes 529 distributions must be used for qualified expenses in the same tax year the expenses are incurred Qualified Expenses include Tuition and fees for the total amount of college or vocational school tuition Some states also allow K-12 tuition for…, How can you make withdrawals, When its time to pay for education expenses you have two primary options for making payments from your 529 plan Direct payment Many 529 plans allow direct payment to the educational institution Direct payments simplify the process and ensure the funds are used for qualified expenses Reimbursement If youve already paid out-of-pocket for qualified expenses you can reimburse yourself from the 529…, Managing leftover funds, There are several strategies for managing leftover funds in a 529 plan each with its implications, Change the beneficiary,  The flexibility of 529 plans allows for the beneficiary to be changed to another family member such as a sibling cousin or even the account holder themselves for further education pursuits, Transfer to a Roth IRA,  Effective January 1 2024 529 account funds may be transferred to a Roth IRA if the account has been maintained for at least 15 years and the amount being transferred was contributed at least 5 years prior The Roth IRA also must be that of the 529 accounts designated beneficiary since 529 plans are considered part of the beneficiarys estate While the aggregate transfer amount is capped at $35000…, Non-qualified withdrawals,  You can make non-qualified withdrawals but these will be subject to income tax and a 10% penalty on the earnings portion of the withdrawal This option should be the last resort A 529 plan is a versatile and beneficial tool for financing education but maximizing its benefits requires understanding and strategic planning By carefully managing contributions timing distributions correctly and wisely…

On behalf of the firm we are pleased to share that we have deepened our partnership with Women Employed (WE through support for WE’s Summer Leadership Program alongside two family foundations WE is a Chicago nonprofit that has worked to improve the economic status of and remove barriers for women since 1973 At Mesirow we prize the dynamic evolution of a workplace that values diverse thought and…

Raising or caring for a loved one with special needs comes with unique challenges including financial planning This guide explores the essential aspects of financial planning for individuals with disabilities We delve into navigating public benefits legal tools like Special Needs Trusts investment strategies and insurance planning By understanding these areas you can ensure your loved one…, Special needs planning defined,  , Special needs planning refers to the process of preparing for the financial and care needs of individuals with disabilities or special needs This planning ensures that these individuals receive the necessary support throughout their lives without jeopardizing their eligibility for government benefits  A comprehensive plan for an individual with special needs will include consideration for things…, Eligibility for public benefits , Public benefits are a resource that may be available to the individual with special needs These benefits are either “means-tested” or “non-means-tested” , Means-tested benefits, include benefits such as Supplemental Social Security (SSI Medicaid VA Aid and Attendance and Subsidized Housing As means-tested benefits these are subject to asset limits income limits or both , Non-means-tested benefits, include benefits such as Social Security Disability Insurance (SSDI Medicare and VA Compensation With these benefits there are no asset or income limits  Here’s the catch with the means-tested benefits — if you have over $2000 in assets as a single individual with disabilities or $3000 in assets as a couple you are ineligible to receive SSI Assets can include income of a spouse in the household…, Legal needs Setting up a Special Needs Trust, A Special Needs Trust (SNT allows money and other assets to be held in trust for the benefit of a person who is receiving (or may in the future receive assistance from a means-tested public assistance program without having those assets counted toward the program’s asset limits (and thus disqualifying the beneficiary The hallmark of a SNT is that distributions can only be made if they supplement…, ABLE accounts and investment planning , In addition to Special Needs Trusts Achieving a Better Life Experience (ABLE accounts are another useful planning tool that can help provide assets for a special needs individual ABLE accounts are tax-advantaged accounts that can be used to save for qualifying disability-related expenses  The first $100000 of contributions into an ABLE account will not count against the means-based benefits such…, Example 1, John is an ABLE account owner and works for a company that does not provide a retirement plan His income in 2025 is $50000 Since he does not participate in an employer-plan his account can exceed the Annual Contribution limit of $19000 by $14580 , Example 2, Angela is an ABLE account owner and works for a company that does not provide a retirement plan Her income in 2025 is $10000 Since she does not participate in an employer-plan her account can exceed the Annual Contribution limit of $19000 to $10000, Investment planning, Investment goals as part of the overall financial plan may be different for individuals with special needs than those without special needs Things to consider include  The individuals age Level of need and how that may change over time Time horizon for when the individual may need to begin accessing the funds Those with longer time horizons and with greater opportunities to make income will not…, Insurance needs , A comprehensive special needs plan looks beyond when the parent or guardian will no longer be around Life insurance can provide that peace of mind knowing that the individual will have access to assets even after the parent passes away and funds from the parent’s employment are no longer available Policies will often be used to fund a Special Needs Trust upon the policyholder’s passing This can…, Putting it all together , Holistic comprehensive planning is essential for individuals with special needs Building a trusted team of advisors can provide a peace of mind that the individual will be taken care of even after the parents are no longer around to help If you have a family member with special needs your Mesirow Wealth Advisor will be happy to help you create a plan that meets your needs   Published January 2025, https//wwwforbescom/sites/sergeiklebnikov/2023/04/30/special-needs-financial-planning-smart-advice-for-families-coping-with-disabilities/, https//wwwamericanbarorg/content/dam/aba/publications/probate_property_magazine/v23/2009-aba-rpte-pp-v23-4-july-august-issuepdf, https//wwwablenrcorg/what-is-able/what-are-able-acounts/, https//wwwillinoisablecom/, https//wwwspecialneedsallianceorg/the-voice/your-special-needs-trust-snt-defined-2/

There have been many times in our nation’s history when unforeseen circumstances or economic shifts have created significant change Although the history books have not yet been written on what we are all going through now it is probable that for many of us changing circumstances are impacting both short- and long-term priorities, With that in mind now may be a good time to take a moment to stop think and review where you are where you are going and what it will take to get there In other words now is the perfect to time to go back to basics and review your financial plan against potential changing life goals Needs change over time and often life events trigger the need to take action Listed below are some examples of some…, Life Event, Potential actions to take, Plan a wedding, Update account beneficiaries and successor trustees Determine life insurance needs and recommend appropriate solutions Confirm account registrations are properly titled, Purchase a home , Review mortgage and home equity line financing alternatives Understand the need for comprehensive property and casualty insurance Review personal umbrella liability policy terms and coverage, Expecting a child or grandchild, Develop and implement a college savings or gifting strategy Understand the benefits and drawbacks of 529 College Savings Plan accounts Review life insurance coverage to account for growing families Work with outside advisors to ensure estate planning reflects changing objectives, Off to college, Understand the filing requirements for FAFSA/CSS financial aid profiles Prepare an asset spending plan to minimize taxes and maximize financial aid eligibility Discuss medical power of attorney college-provided health insurance and the other alternatives available to full-time students, Change jobs, Understand workplace retirement and health benefit packages (including employer retirement matching or profit sharing contributions health coverage disability and long term care insurance Establish 401(k deferrals and select new investment instructions Consider options for previous employer’s retirement plans and portable insurance benefits Understand how High Deductible Health Plans affect…, Plan for retirement, Develop and implement a retirement plan savings strategy Ensure “catch-up” contributions are used for those age 50 or older Discuss the features of long term care insurance and the benefits that it offers, Retirement, Identify a personalized Social Security claiming strategy to maximize expected lifetime income Discuss Medicare health care coverages available for those age 65 or older Analyze workplace pension payment options such as receiving a lump sum benefit versus lifetime income Plan for retirement account Required Minimum Distributions Understand the benefits of Qualified Charitable Distributions for…, Aging parents or grandparents, Develop a gifting plan to remove assets from the taxable estate Be sure the end-of-life planning wishes (such as powers of attorney medical care living wills etc are clearly communicated to loved ones and family, Annual financial checkup, Review updated personal financial statements Update asset values liabilities and current net worth Reconcile cash flows income living expenses and savings Develop a written savings and cash flow plan to prepare for leaving a legacy retirement income education expenses and/or unexpected financial needs Ensure savings are directed to the most efficient account types Maintain safety and liquidity to…, Year end planning, Harvest tax losses and use carryforwards to reduce capital gains taxes Accelerate ordinary income if lower-rate tax brackets are unused Understand how deductions income phase outs and the Alternative Minimum Tax interact We provide our clients with comprehensive wealth management and investment advice Together with the families we work with we have in-depth conversations to understand each…, Published January 2025

In preparation for tax time many of our clients look for opportunities to maximize their charitable contributions especially in a “windfall” year One way to do this is with a Donor Advised Fund which allows donors to make a charitable contribution receive an immediate tax benefit and then recommend grants to charities over time, Our clients often make their charitable contributions is by donating to a donor advised fund Think of this as an easier and less costly alternative to a charitable family foundation How a donor advised fund (DAF works You donate either cash or appreciated stock to the donor-advised fund and receive the allowable charitable tax deduction You with the support of your advisor control the investments…, Give appreciated stock , The full value goes to the donor-advised fund The Fund does not have to pay capital gains on the appreciated stock, Give more in a windfall year , You can maximize your deduction and then give to charity over time, Receive only one charitable deduction notice , on the contribution even though the grants are going to multiple charities Next steps The concept is simple and the approach is savvy That said this type of donation should be integrated into your overall charitable giving strategy Discuss this with your wealth advisor to see how best to maximize the benefit of the donation as well as the long term impact on your financial plan , Published  February 2025, https//givingusaorg/wp-content/uploads/2022/06/GivingUSA2022_Infographicpdf

Combining a bottom-up and top-down strategy for long-term success, Most active investing entails bottom-up fundamental analysis By analyzing valuation metrics and financial statements investors try to determine what to buy what to sell and when However when investors use similar processes they may produce strikingly similar blind spots when external influences are not considered We believe the ability to incorporate exogenous factors into one’s decision making…