Planned Solutions

In this episode of the Planned Solutions Incorporated Podcast, the inflation breakeven rate is derived by comparing the interest rates paid on nominal Treasury bonds to the rates paid on inflation-protected Treasure bonds. It is a way for economists to gauge the inflation expectations of investors who are investing real money in these markets, as opposed to opinion surveys, making the inflation breakeven rate a historically more accurate gauge of future inflation. Recently this indicator has been falling signaling that inflation in the US may have peaked in the near term. Also, When 529 plan funds are left over after higher education expenses have been met there are several options for account holders. These include transferring the beneficiary to the next generation, using the 529 plan funds to pay down student loan balances, or taking a nonqualified distribution from the 529 plan in which the growth in the plan may be subject to income taxes and penalties. And, Charitable Remainder Trusts (CRTs) can be a