Living
Tips on paying for college
Help for parents in challenging economic times
Does this story sound familiar?Ā You started saving for college when your son or daughter was very young and you thought you were on track to prepare for their college tuition payments.
You also assumed that your income would keep growing over the years to help you save even more. But now you realize the stock market is still off its October 2007 peak and your investments have not caught up either. With all the current volatility, it may seem that your investments are going nowhere. However, your kids are going somewhere ā off to college, at a cost of anywhere from $20,000 to $55,000 a year (according to the website savingsforcollege.com).
Current wisdom suggests that 529 plans are the answer to all college funding needs. Those are education savings plans operated by a state or educational institution. These plans or programs allow you to save for qualified college-related expenses with after-tax dollars and then withdraw the funds and earnings tax-free. In addition, many states offer the owner of the 529 plan full or partial state income tax deductions for their contributions to the state’s section 529 plans.
In this area, Maryland, Virginia and D.C. all offer the state income tax deductions. How valuable these are depends on the amount of the deduction and your overall income tax bracket. The contributions to the 529 plans are invested and are therefore subject to the returns of the stock and bond markets and, therefore, the principal invested could suffer a loss. If your child has many years before college, there may be time to ride out volatility and the benefits of the tax-free compounding will make the 529 plans an appropriate vehicle for college savings.
However, especially for those whose children are going to college in the next few years, it is usually a good idea not to devote all college savings to one savings vehicle such as a 529 plan. Current cash flow will be your go-to source at this stage. If you have been paying for private school and other pricey activities, you can simply redirect your disposable income.
If you were planning to use this freed-up cash flow for other expenses such as a dream vacation or a holiday home, you may have to put those dreams on hold if paying for college is your priority. Even if you have not been laying out the amount of cash needed for college but you still need to boost those college funds, you could probably find part of the money needed by adjusting your other expenses.
Depending on your tolerance for risk, there may be some short-term investments to consider, but keep in mind there will always be the risk that you will lose principal. Donāt put all your eggs in one basket. You can always share the cost with your children or ask grandparents or other relatives to consider helping out. You can also apply for a loan and hope for at least a partial scholarship.
Some people consider diverting their retirement savings into college expenses or even borrow from their retirement accounts such as a 401(k) (although they should be aware that limitations and penalties could apply). While this may free up cash flow and seem like a good idea, it is important not to forget your priorities. Remember, you can borrow from retirement savings to pay for other needs but you cannot borrow for retirement!
(The examples provided above are hypothetical and for illustrative purposes only. Actual results and your situation will vary. This material is for informational purposes only and is not intended to provide specific advice to any individual.Ā Please talk to a financial adviser prior to purchasing any investments.)
Electric vehicles are charging ahead, despite recent saber rattling by politicians. After testing a bevy of EVs, the rides below certainly got my motor running.
BMW iX (midsize SUV)
Price: $89,000-$113,000
Range: 288 to 324 miles
0 to 60 mph: 4.0 seconds
Cargo space: 35.5 cu. ft.
WHATāS TO LIKE: Fun styling. Funky steering wheel. Floating center console. Oh, and cameras, radar and other sensors hidden in the grille, which has a special coating to magically erase minor scratches and dings. I was blown away when the BMW iX debuted in 2022. Three years later, the thrill is still there. Acceleration, cornering and braking? All breathtaking, in both the base model xDrive50 and high-test M60. Gizmos now include eye-tracking software so you can change lanes simply by glancing toward one of the side-view mirrors. An expansive digital monitor above the dash holds both a 14.9-inch infotainment display and 12.3-inch digital gauge cluster. And many materials ā such as carpet and floor mats ā are recycled. A truly eclectic electric? You bet.
CADILLAC LYRIQ (midsize SUV)
Price: $60,000-$70,000
Range: 314 miles
0 to 60 mph: 5.7 seconds
Cargo space: 28.0 cu. ft.
WHATāS TO LIKE: If a BMW iX is cutting edge (say, like āTransformers Oneā), then a Cadillac Lyriq is old-school cool (a la āDeadpool & Wolverineā). Handsome design. Familiar feel. Quiet cabin. Handling is more affable than athletic. Ditto the acceleration. The land-yacht aura extends to the seats, which are cushy instead of taut. For older ā er, more mature ā drivers, this is a plus. But thereās plenty of tech here, too: 33-inch digital display, tri-zone climate control, hands-free driving, wireless charging pad and so on. When first sliding behind the wheel, I wished the navigation/infotainment interface was more intuitive. But a stellar voice-assistant system more than made up for it.
KIA EV 9 (large SUV)
Price: $57,000-$76,000
Range: 230 to 304 miles
0 to 60 mph: 4.9 seconds
Cargo space: 20.2 cu. ft.
WHATāS TO LIKE: A cyborg in the city? With Robocop styling and Tron-like finesse, the Kia EV9 looks and feels out of this world. Three-row seating, with scads of passenger room. Lowering all the rear seats expands cargo capacity to fit more than 15 suitcases. And unlike most EVs, the EV9 can tow up to 5,000 pounds. Yet the hulky hauler behaves like a nimble ninja, easily darting in and out of traffic. At almost 6,000 pounds, the King Kong Kia is three tons of fun āliterally. There are so many creature comforts ā self-leveling suspension, ambient lighting, massage seats, rear-window shades, 14-speaker Meridian audioāyou would think this was a Range Rover.
MERCEDES EQE (midsize SUV)
Price: $80,000-$110,000
Range: 265 to 307 miles
0 to 60 mph: 5.6 seconds
Cargo space: 14.0 cu. ft.
WHATāS TO LIKE: Luxury is as luxury does and Mercedes does luxury well. With a dashing design, silken ride and hushed interior, the EQE sets a high bar. Four trim levels, including the awe-inspiring AMG with 617 horsepower. Everything is state-of-the-art: powertrains, suspension, safety, multipixel headlights, cabin air purifier, Burmeister stereo and more. An augmented-reality nav system monitors traffic, weather and such, then conveys this info into graphic overlays on the head-up display. And the standard faux leather seats? They look and feel like the real thing. One downside: minimal cargo space. But then, thereās always a full-size EQS topping out at $180,000.
NISSAN ARIYA (compact SUV)
Price: $40,000-$56,000
Range: 205 to 289 miles
0 to 60 mph: 7.5 seconds
Cargo space: 22.8 cu. ft.
WHATāS TO LIKE: Cute, compact, comfy. Itās easy to like a Nissan Ariya, with its cheeky exterior, composed handling and low price. Choice of two battery packs, as well as two-wheel or all-wheel drive. Base-model pricing is hard to beat, but beware the tradeoffs: pokey acceleration and reduced range. Luckily, the other trim levels offer more oomph. All Ariyas come loaded: LED headlights, heated steering wheel, heated front/rear seats, nav system, head-up display and lots of safety gear. Notable options: panoramic sunroof, hands-free liftgate, limited hands-free cruise control, automated parking and illuminated kick plates. Overall, I found the ride smooth, though not sporty. Racing mavens may want to look elsewhere, but itāll cost you.
SUBARU SOLTERRA (compact SUV)
Price: $40,000-$47,000
Range: 222 to 227 miles
0 to 60 mph: 6.1 seconds
Cargo space: 27.7 cu. ft.
WHATāS TO LIKE: The first EV from Subaru ā the Solterra ā boasts origami-like flair. Built in tandem with the quirkily named Toyota bZ4X, both SUVs fall a bit short in battery range āless than 230 miles. But the Solterra comes standard with all-wheel drive, roof rails and front cross-traffic alert. Plus, it now has faster charging times, as well as hands-free driving at up to 25 mph and an automatic lane-changing system used in conjunction with the turn signal. While not a true off-roader, this āSubieā has above-average ground clearance ā 8.3 inches ā to better tackle snow and potholes. And I liked all the storage compartments, along with dual-level cargo floor to fit extra luggage.
Real Estate
Snatching your dream home in D.C. this winter
A good time to get a deal during slower season
If you’re thinking about planting roots in the DC Metro, then the winter months are a time when you can get a good deal during a slower time in the market. D.C. isn’t just for politicians and monuments; itās a city brimming with diverse neighborhoods, chic eateries, and more rainbow flags than you can shake a stiletto at. But before you slip into those house-hunting boots, letās make sure youāre well equipped for the real estate game in our nationās capital.
1. Credit Check. Before you even start ogling those gorgeous row houses in Capitol Hill or swooning over condos in Logan Circle, make sure your credit score is ready. Lenders love to see a credit score thatās as high as my hair. If itās looking a little low, then pay down those cards and keep your balances low.
2. Budget Realness. We all love a little splurge now and then (those D.C. brunches aren’t cheap), but buying a home is no time for financial fantasy. Work out your budget and know what you can afford monthly. Factor in those hidden costs like HOA fees and property taxes. Stay within your budget so you can keep rocking those designer threads without a sweat.
3. Location, Location, Location! D.C. is all about neighborhoods with character. Are you more of a Dupont Circle fan or perhaps Petworth? Maybe you fancy the historic vibes of Georgetown or the up-and-coming cool of Navy Yard. Each neighborhood has its own vibe and price tag, so do your homework and figure out where you fit in. Pro tip: Visit at different times of day to really feel the neighborhoodās pulse.
4. Find a Real Estate Agent. Find yourself a real estate agent who not only knows the market but also gets you ā someone who can dish out honest advice and help you avoid any missteps. The right agent will be your guide, confidante, and maybe even your future brunch buddy. Remember, youāre in this together, so choose someone whoās as excited about finding your dream home as you are.
5. Mortgage Pre-Approval ā The Golden Ticket. Nothing says āIām seriousā like a pre-approval letter from your lender. It’s the ultimate accessory to your house-hunting outfit, giving sellers that warm, fuzzy feeling that you’re not just window shopping. Plus, it helps you know exactly how much home you can afford, so youāre not falling head over heels for something out of reach.
6. House Hunting: The Fun Part! Time to put on your walking shoes and start touring. Donāt be afraid to ask questions, take notes, and envision yourself hosting fabulous dinner parties in these spaces. But be prepared to act fast. D.C.ās real estate market moves quicker than a āRuPaulās Drag Raceā elimination round, so if you find āthe one,ā donāt hesitate to make an offer.
7. Inspection, Baby. Once youāve got an offer accepted, itās time for the home inspection. Think of it as the all-important makeover montage. You want to uncover any issues before they become your problems. Trust your inspector and get those deets ā everything from the roof to the basement needs a thorough once-over.
8. Closing Day ā Youāve made it. The grand finale! You’ve done the work, and now itās time to close the deal. Gather your paperwork, bring your ID, and maybe wear something that screams āIām a homeowner!ā After the signatures and happy tears, the keys are yours. Pop the Champagne and toast to your new fabulous life in D.C.
Final Thought: Love is Love, and Home is Home. Remember, your home should be a place where you feel comfortable, safe, and fabulous. Whether you’re single, partnered, or part of a chosen family, the D.C. Metro offers a vibrant, inclusive community that’s ready to welcome you with open arms. So go out there and claim your slice of this iconic city ā youāve got this.
Justin Noble is a Realtor with Sothebyās International Realty licensed in D.C., Maryland, and Delaware for your DMV and Delaware beach needs. Specializing in first-time homebuyers, development and new construction as well as estate sales, Justin provides white glove service at every price point. Reach him at 202-503-4243, BurnsandNoble.com or [email protected].
Real Estate
2024 D.C. residential real estate market in review
Insights and trends for the LGBTQ community
As 2024 ends, the residential real estate market reflects a year of notable shifts, with both progress and setbacks impacting LGBTQ homebuyers and sellers. While strides have been made in fostering inclusivity in some areas, the overall landscape has grown increasingly complex. The political climate, coupled with emerging challenges to diversity, equity, and inclusion (DEI) programs, has significantly influenced the housing market and the LGBTQ+ community’s experiences within it.
Impact of Political and Social Shifts
The incoming Trump administration has signaled a rollback of DEI initiatives across various industries, and housing is no exception. Efforts to reduce funding for fair housing programs and weaken protections against discrimination have raised concerns for LGBTQ individuals seeking equitable access to housing. Many previously inclusive initiatives in real estate development and local government policy may be scaled back or abandoned altogether, creating a climate of uncertainty.
Despite these challenges, organizations like GayRealEstate.com continue to advocate for LGBTQ buyers and sellers, providing a critical safety net in an increasingly polarized environment.
Trends for LGBTQ Buyers, Sellers in 2024
- Increased Caution in Relocation Decisions:
LGBTQ+ individuals and families have grown more deliberate in choosing relocation destinations. States with strong anti-discrimination protections, such as California, New York, and Massachusetts, remain top choices, while states perceived as less LGBTQ+ friendly have seen a decline in migration.
- Emergence of “Safe Zones”:
Many LGBTQ+ buyers are seeking out neighborhoods and cities that actively uphold inclusivity despite national trends. These “safe zones” often feature strong community support and resources, but their limited availability can lead to higher housing costs.
- Barriers to Homeownership Persist:
Discrimination in lending and housing remains a significant challenge. If you experience discrimination in lending or housing, itās essential to report it and seek support.
At the Local Level: Report incidents to your city or stateās Fair Housing Office or Human Rights Commission. To find your local office, check your city or state government website for contact details.
At the National Level: U.S. Department of Housing and Urban Development (HUD):
- Phone: 1-800-669-9777 (Toll-Free)
- TTY: 1-800-877-8339
- Online Complaint Form: HUD Discrimination Complaint
Additionally, working with an LGBTQ professional through GayRealEstate.com provides an added layer of security and advocacy. These experts understand your unique needs and are committed to ensuring you experience a fair and inclusive home-buying or selling process.
- Focus on Financial Security:
With the economic uncertainty brought about by political shifts, LGBTQ buyers are prioritizing affordability and long-term financial stability. This has led to increased interest in shared housing arrangements, multi-generational living, and cooperative housing solutions.
- Advocacy for Fair Housing Protections:
Advocacy groups and legal organizations are ramping up efforts to defend and expand fair housing protections for LGBTQ individuals. These efforts remain a crucial counterbalance to the rollback of federal DEI programs.
Challenges and Opportunities in the Current Climate
The expected rollback of federal protections and reduced funding for fair housing programs will pose significant challenges, particularly in regions already struggling with inclusivity. However, the resilience of our LGBTQ+ community and our allies has created opportunities for grassroots movements to push for local-level inclusivity and support.
Looking Ahead to 2025
As the new administration takes office, the housing market’s inclusivity for LGBTQ individuals may face further obstacles. However, the strength of community-driven initiatives and the unwavering support of advocacy organizations like GayRealEstate.com (and the 21+ National LGBTQ non-profit organizations they support financially monthly) offer hope for continued progress at local and regional levels.
LGBTQ buyers and sellers are encouraged to stay informed, seek out trusted allies in the real estate industry, and leverage platforms like GayRealEstate.com to ensure their home-buying or selling experience remains as smooth and equitable as possible.
Despite the challenges of an evolving political and social climate, one thing remains certain: LGBTQ individuals have allies who stand by their side, fighting for equality and inclusivity in housing and beyond. For more than 30 years, GayRealEstate.com has been a steadfast advocate for LGBTQ rights, helping thousands of individuals and families navigate the home-buying and selling process safely and confidently.
Not only does GayRealEstate.com connect clients with LGBTQ-friendly agents, but the organization also actively supports LGBTQ non-profit initiatives, ensuring that the community continues to thrive. No matter the obstacles ahead, we want you to know: Weāre not going anywhere.
Whether youāre buying, selling, or relocating, GayRealEstate.com is here to provide the expertise, resources, and unwavering support you deserve. Together, weāll continue building a brighter, more inclusive futureāone home at a time.
Jeff Hammerberg is founding CEO of Hammerberg & Associates, Inc. Reach him at 303-378-5526 or [email protected].
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