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

Published: April 24, 2015, 6:08 p.m.

Today I handle your questions and comments.

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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.

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Then, I answer these questions:

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  • 35:48\xa0Dear Joshua,\xa0I have a question regarding a specific method for paying for my children's college education. \xa0Putting 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).\xa0I 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.\xa0Assuming (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
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  • 44:04\xa0Joshua, 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:\xa0Should I continue the life insurance at work even after I get from outside? Will the 2 ever be mutually exclusive?\xa0Should I search for an agent? If so, are there any websites that can help me find one?\xa0Are websites like Accuquote reliable?\xa0How else should I compare the products of various providers? -Vikram
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  • 1:01:52\xa0Joshua, I wanted to ask you to consider a podcast show around radical ways to lower the cost of owning a home. \xa0Not the typical advice out there, \xa0but more along the lines of buying a property that meets your families needs but that could provide rental income to offset your mortgage too.\xa0Cash 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.\xa0-Todd
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  • 1:20:16\xa0Joshua,\xa0While 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?\xa0-Harout
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Enjoy the show!

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Joshua

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