You can potentially use a 529 plan to pay for trade school, vocational school, and apprenticeships.

If you or your family have saved money for your education within a 529 plan, you can use those funds to pay for qualified education expenses without tax implications. 

But how about students who opt to attend a trade school instead of a traditional college or university? Can you still use the funds in your 529 to cover college costs?

We explore what the funds in your 529 can be used for, whether apprenticeships are eligible, and share some tips of how to fill any potential funding gaps. 

Can You Use A 529 To Pay For Trade School?

Yes, the funds in your 529 can be used to pay for an eligible trade school. Although not all vocational schools are eligible, many are. 

Which Vocational Schools Are Eligible?

You can use the money in a 529 to cover the cost of an education at certain vocational schools. Qualifying trade and vocational trade school programs must be sponsored by schools that are eligible for Title IV federal student aid.

In order to determine if the institution you have in mind accepts federal aid, search for a Federal School Code on the Free Application for Federal Student Aid (FAFSA).

It requires a bit of research, but you can often find a vocational or trade school offering the skill you want to learn that is eligible for your 529 funds. For example, in Ohio, the Ohio Department of Higher Education operates 50 career centers across the state that are eligible for 529 fund use.

Are Apprenticeships Eligible?

An apprenticeship is often a viable alternative to a traditional trade school or vocational school path. Generally, an apprenticeship is a long-term, paid working program that includes both on-the-job training and classroom instruction.

In some cases, you can use 529 funds to cover expenses related to an apprenticeship program. But the apprenticeship program must be registered and certified with the Secretary of Labor to qualify. 

What Expenses Can You Cover With A 529?

As mentioned, if you are attending an eligible trade school or apprenticeship program, you can use the funds in your 529 to cover certain expenses. Qualified expenses include:

• Tuition
• School fees
• Textbooks
• Supplies and equipment required for attendance, including tools
• Computers
• Room and board 

If you use the funds in your 529 to pay for a non-qualified expense, you’ll have to pay federal income tax and a 10% penalty on the earnings. 

How To Fund Any Gaps

In most cases, trade school students with a 529 will be able to use plan funds to pay for their education. However, in some cases, you might need to reconsider which trade school you choose to attend. 

Depending on your situation, your 529 account may or may not have enough funds available to cover all of your education costs. If you can’t pay for all of your trade school expenses using 529 funds, you’ll need to come up with some other ways you can pay for the remaining costs. We outline the best ways to fund the remaining costs from most ideal to least efficient below:

• Scholarships. When you win a scholarship, you can use the money for school and you won’t have to pay it back. Try to apply for at least 50 scholarships to land money for school. Use our guide of scholarships by state to help you find scholarships to apply for. 
• Grants. Grants are another type of financial award that you don’t have to pay back. 
• Personal savings. If you’ve worked during high school or have funds tucked away from holiday presents, consider tapping into those funds to cover your educational costs. 
• A part-time or summer job. It’s usually possible to work while you attend school. Even if you can’t work and attend class at the same time, it’s often possible to work a summer job to build up funds to cover your next semester. Don’t overlook your earning potential as a way to pay for school.
• Employer tuition reimbursement programs. Some employers offer tuition reimbursement as a perk of working for them. A few employers offering tuition reimbursement include Carhartt, Carvana, and Nvidia. When looking for a job, it might be helpful to include employers who offer this perk in your search. 
• Help from relatives. If you have relatives who want to help you pay for school, that’s always a welcome source of funds. 
• Student loans. It’s possible to pay for trade school costs with student loans. But since you’ll have to repay the funds with interest, these should be treated as the last option.

When it comes to paying for school, don’t be afraid to get creative. Generally, it’s a good idea to limit the amount of student loans you take on. After graduation, you’ll be grateful you did everything you could to avoid taking out more loans than you needed to. 

The Bottom Line

It’s possible to use a 529 to fund your trade school education. Although there are limitations on which vocational schools are eligible, many are. Do you research before signing up for classes to ensure you are able to use the funding source you had in mind to pay for school without any penalties. 

When you consider your side hustle options, driving with a rideshare service might come to mind. For drivers with extra time, the ability to earn at any time can really help increase your income. 

For women and nonbinary individuals considering rideshare driving, Lyft’s Women+ Connect feature will definitely be of interest. Women+ Connect is designed to help women and nonbinary drivers feel more comfortable driving with the rideshare company. 

In partnership with Lyft, let’s explore what this new feature is and how it might open the door for more rideshare drivers. If you're curious to get started, sign up for Lyft here >>

What Is Women+ Connect?

Women+ Connect is Lyft’s latest user-friendly feature. Essentially, it matches women and nonbinary drivers with women and nonbinary riders more often. The hope is that the Women+ Connect feature will allow more women to drive with Lyft with confidence.

“Women+ Connect is all about providing more women and nonbinary people the opportunity to earn money on their terms and giving riders more choice,” said Lyft CEO David Risher in a recent blog post. “We hope this gives millions of drivers and riders another reason to choose Lyft.”

How It Works

Any woman or nonbinary driver can turn on Women+ Connect. After opting in, you’ll be more likely to match with women and nonbinary riders. 

It’s important to note that the Women+ Connect feature indicates a preference within your Lyft account. However, opting into this feature doesn’t guarantee that you’ll only be paired with women and nonbinary passengers.

If you change your mind about opting into this feature, you can turn off Women+ Connect through your Lyft app.

Sign Up For Lyft Here. >>

Benefits Of Driving With Lyft

As you weigh your side hustle options, consider the following additional benefits of driving with Lyft:

• Earn extra income. Most of us can appreciate the opportunity for supplemental earnings.
• Flexibility. As a rideshare driver, you can work on your own schedule.  
• Bonuses. Lyft offers drivers extra incentives in the form of various bonus opportunities that can boost your rideshare earnings.

Building an extra stream of income in the form of a side hustle can completely transform your financial situation. You can use the extra funds to pay off debt, save for emergencies, build wealth for retirement, and even splurge on lifestyle purchases.

The Bottom Line

Lyft’s Women+ Connect feature has the potential to help more women and nonbinary sidehustlers take the rideshare leap. Although starting a side hustle of any kind can be challenging, flexibility helps make this extra income stream worthwhile.

Get started with Lyft's Women+ Connect here >>

Unique Stock Gifts is a platform that allows you to purchase a stock and gift it to someone. It's offering includes the stock purchase, registration information, and packaging and shipping the stock certificate to the recipient.

If you're looking to provide a relatively unique gift that might spark a conversation in financial literacy and can potentially grow in value, Unique Stock Gifts might be the service you’ve been searching for. In this review, we explore what Unique Stock Gifts has to offer.

What Is Unique Stock Gifts?

Unique Stock Gifts has been around since 1998. The family-owned business operates on the west coast of Florida. The company isn’t a stock brokerage. Instead, it’s a gift company that allows buyers to give the gift of stock ownership. In addition to providing paper stock certificates or high-quality stock replicas, Unique Stock Gifts can frame and ship your gift to the recipient. 

What Does It Offer?

Here’s a closer look at what Unique Stock Gifts has to offer.

Straightforward Stock Gifting Options

Buying a stock through Unique Stock Gifts is very straightforward. You can complete the purchase process in a matter of minutes. And if you need a rush order, you can opt for a printable stock certificate replica.

But if you have time, you can customize the framing options for the stock certificate of your choice. You’ll have the ability to add on fun extras, like a plush toy or gift wrap, before finalizing your purchase.

Plus (assuming you don't get a replica), this is a real share of stock, with real ownership in the company!

Range of Stocks

Unique Stock Gifts offers dozens of different stocks to choose from. Some of these include Disney, Berkshire Hathaway, Zillow, Wendys, Yeti, NVIDIA, and more. Although not every stock is available, the wide selection should give you plenty to choose from as you pick the perfect gift.

Shipping Options

The stock certificate can be shipped anywhere in the U.S., Canada, China, and Denmark. Expedited shipping is available. 

Are There Any Fees?

Unique Stock Gifts charges fees for legally registering the stock, the stock certificate itself, the framing, add-ons, shipping, and more. Of course, a stock with a higher share price will cost more to give than a stock with a relatively low share price. 

Here’s a look at some of the costs:

• Transfer fee. The $39 fee covers the cost of transferring the stock certificate to the recipient. 
• Frames: Expect to pay between $5 and $60 for a frame. A simple keepsake holder will cost just $5. But a deluxe wood frame will cost closer to $60. 

If you want to add additional items, such as a plush Mickey or gift wrapping, expect to pay more. 

How Does Unique Stock Gifts Compare?

Unique Stock Gifts isn’t the only option for gifting stocks. Here’s how it stacks up:

GiveAShare is similar to Unique Stock Gifts. Through GiveAShare, you can purchase single shares of stocks as a gift, which can be framed and mailed to the recipient.

Stockpile offers a different concept. As a buyer, you’ll purchase a gift card to give to the recipient. The gift recipient can then use the gift card to purchase fractional shares of stocks through this self-directed, online brokerage platform.

How Do I Buy A Stock?

Here’s how to buy a stock through Unique Stock Gifts.  

1. Select the stock. There are dozens of stocks to choose from through Unique Stock Gifts, including Disney and Zillow. 
2. Customize the order. If you want to frame the certificate or add a plush toy to the order, you’ll have the chance to do so now. 
3. The recipient receives a display certificate. Depending on the company, the recipient may receive a high-quality replica or an actual stock certificate in the mail. Within the package, the recipient will find a unique account number and proof of ownership of one share of company stock. 
4. Shareholder information package arrives. The recipient will receive a shareholder information package in the mail within three to eight weeks of your order placement.

If you are buying a stock for a child, you’ll need to name a custodian, whose name will also appear on the registered stock. Generally, a responsible parent or guardian is the right choice for a custodian. 

What If I Want To Sell My Stock?

Since this is a real share of stock, you can actually sell your share. However, selling a paper stock certificate is not as easy as when it's at an online brokerage.

To sell your stock, you need to work with the transfer agent for the company, and transfer your shares to a brokerage. You typically have to fill a form, endorse the stock certificate (like you do a check), and then the share will be deposited into your brokerage.

At that point, you can sell your share.

Is It Safe And Secure?

Yes, Unique Stock Gifts is a safe company with a good reputation. The company has been in business since 1998 and has earned an A+ accreditation from the Better Business Bureau. Although Unique Stock Gifts isn’t an investment broker and doesn’t provide investment advice, it’s safe to purchase a physical stock certificate or replica through the company. 

Contact

You can get in touch with Unique Stock Gifts by calling 1-888-663-7862. Or you can fill out the contact form on the company’s website. 

Is It Worth It?

Unique Stock Gifts offers a straightforward way to give the gift of a stock. After you purchase the stock, it’s possible it will rise in value over time. That’s a lot more than can be said for most gifts, like clothes and toys, which are often forgotten about in years to come.

Although this is an easy way to gift a stock, it’s not necessarily cheap. You’ll pay for the convenience through transfer fees and framing costs. But for many, this cost might be worth it.

Check out Unique Stock Gifts here >>

Features

Should you pay extra to have your tax prep fees taken out of your upcoming tax refund? It sounds like an appealing offer - paying nothing out of pocket. But is it really worth it?

The help of a tax preparation service can make your life easier and potentially lead to savings on your tax bill, but having to pay up front for tax prep services can feel like a hit to your wallet.

One option is to allow the company to take your tax preparation fees directly from your future tax refund. We explore when it makes sense to pay for tax preparation services, when it doesn't, and the logistics of paying.

When To Pay For Tax Preparation Services (And When Not To)

It’s possible to file your taxes without any assistance, or you can hire a tax professional to complete your tax return for you. Let's explore when it makes sense to work with a tax prep service and when it doesn’t.

Who Should Consider A Tax Preparation Service?

Although many tax filers opt for a DIY approach to taxes, wading into the tax code isn’t the best option for some. Tax filing can be somewhat complex, depending on your situation. Even for those with a fairly straightforward situation, going it alone could mean errors or accidentally missing out on potential tax saving opportunities. 

Here are some situations when hiring a tax prep service makes sense:

• You dread tax time. If you find yourself procrastinating and feeling a sense of dread at the prospect of having to deal with your tax return, outsourcing to a professional can help. 
• You have a complex tax situation. Multiple income streams, side hustles, real estate investments, educational expenses, and more can all add up to a complicated tax situation. Generally, it’s helpful to have a professional to work through the details of your situation. 
• You want to optimize your tax return. While you can file on your own, you might miss out on details of the tax code that could lead to savings. The right professional will find all the deductions and credits you may qualify for.

Generally, taxpayers with multiple streams of income, a business of any kind, substantial assets, or unusual income situations can benefit from working with a tax professional. 

Who Should Consider A DIY Tax Prep Option?

Many taxpayers hire professionals to prepare their returns. But sometimes, the DIY route makes sense. Below is a look at some situations when using tax software to file your own return is the best option.

• You have a simple tax situation. If you are single with a W-2 job and few assets, filing your taxes could be a simple process you can handle on your own. 
• You have the fortitude to sort through your documents. If you have a basic understanding of how taxes work and don’t mind wading through the paperwork, preparing your own tax return might not be a challenge. 

If you decide to do your own taxes, there are several free and paid tax software options available to get the job done. 

Should You Pay To Have Your Tax Prep Fees Taken Out Of Your Tax Return?

Once you've decided how you want to do your taxes, the next step is to figure out how you will pay for their services. Some tax preparers require you to pay upfront before anything is filed with the IRS. Others will send you a bill after finalizing your returns. Still others offer an option to pay for your tax prep services with a portion of your tax refund (including most tax software options).

The right payment method varies based on your situation. But if you want to keep things simple, choosing to have the tax preparation company take the funds due out of your tax return is a straightforward option. You won’t have to worry about saving up to pay for an expensive fee. Instead, you’ll pay the bill and receive a smaller tax refund check.

Not all companies offer this option, but may tax software programs do. Make sure to shop around to determine which company offers the most affordable rate for the services you require. If you have to pay significantly more to work with a particular company, it may not be worth the extra expense. 

Where Can You Pay For Tax Prep Services With Your Refund?

If you want to pay for your tax prep services directly from your tax refund, the Santa Barbara Tax Products Group (SBTPG) is typically the back office service that handles it for major tax software options like TurboTax. However, there are also others.

Here’s how the process of paying with your refund works with SBTPG or any other firm: 

1. Choose to pay by refund. Let the company know you want to pay for your tax prep services with your refund. Additionally, you’ll decide where to direct the remainder of your refund amount. 
2. File your tax return. After your tax return is finalized, you can file it. The documents will include SBTPG’s information, which means the IRS will send them your tax refund. 
3. Receive the refund. SBTPG will receive your refund and withhold your tax preparation fees. From there, the rest of the funds will be issued to you in whatever way you set it up - including a prepadi debit card.

The Bottom Line

Overall, opting to have your tax prep services paid out of your refund provides a streamlined way to cover your tax prep bill. The convenience of this service is worthwhile for many. But it’s generally not a good idea to pay significantly more for tax prep services for the express purpose of paying with your refund. 

Here's how to rebalance your portfolio so that you don't get off guard with a bad asset allocation if the stock market corrects soon.

If you're a savvy investor, you may have taken the time up front to determine the appropriate asset allocation for your portfolio based on your risk tolerance and financial goals. But portfolio rebalancing is a critical part of maintaining an investment mix that aligns with your values.

If you're wondering what portfolio rebalancing is and why it matters, you aren’t alone. Many investors overlook this component of building an investment portfolio that serves their interests for the long-term. Let’s take a closer look at what it means to rebalance a portfolio and how it can impact your risk and returns. 

What Is Portfolio Rebalancing?

When you first hear the term "portfolio rebalancing," you may conjure up an image of an intricate financial balancing act. And that assumption is not too far from reality.

Portfolio rebalancing is the act of reorganizing your asset allocation as your portfolio grows. Although it would be ideal if your portfolio could rebalance on its own, that's not a possibility without the help of a robo-advisor or target-date fund. 

Example Of Portfolio Rebalancing

Let’s say you determine that your ideal investment portfolio consists of the following:

• 50% large cap stocks
• 20% international stocks
• 15% REITs
• 15% intermediate bonds

It can be tempting to set up your portfolio and forget about it. But market fluctuations will inevitably throw your ideal asset allocation out of whack.

For example, imagine that over the next year large cap stocks significantly outperform bonds. You may glance at your portfolio 12 months from now to find that it consists of the following:

• 60% large cap stocks
• 20% international stocks
• 15% REITs
• 5% intermediate bonds

At this point, you’ll need to take the time to rebalance your portfolio by selling some of your large cap stocks and buying more intermediate bonds. Otherwise, your investments will continue to become more aggressive (and riskier) than you originally planned. 

Unfortunately, it can be all too easy to forget about rebalancing for years. When you finally realize what is happening, you may find that your investment trajectory is dramatically off course. 

Why Should You Rebalance Your Portfolio?

It may help to think of rebalancing as a choice made to stay on the course you’ve set for yourself. If you never rebalance your portfolio, you may be steering into uncharted territory as if you were a driver that decided to throw out the map while on a cross-country road trip. 

And, more often than not, that uncharted territory is going to involve a bumpier ride due to a higher concentration of stocks. Over the long haul, stocks should outperform bonds which means that your portfolio will naturally become more weighted towards equities over time.

However, stocks are also much more volatile than bonds. So if you don't keep consistently rebalancing your allocation of stocks and bonds back to your target, you may find yourself suddenly dealing with much larger up and down swings in your portfolio.

Portfolio rebalancing becomes even more important the closer you get to retirement. At 25, you can probably deal with a bigger dip in your portfolio than you'd like. But if you'll need to withdraw your cash soon, you definitely want your mix of stocks and bonds to stay on target to avoid huge balance fluctuations from year to year.

How To Rebalance Your Investment Portfolio

Rebalancing is a key part of building an investment portfolio that lasts. As you move forward, there are three different options that could work for your situation. Take the time to decide which option will work best for you and set up a system to regularly rebalance your portfolio. 

DIY Rebalancing

It can feel a bit daunting. But it is absolutely possible to rebalance your portfolio by yourself.

If you choose to rebalance your portfolio yourself, Excel and Empower (formerly Personal Capital) are a few tools that can really help out. You’ll need to check in with your portfolio at least once a year to ensure that your portfolio stays on track.

It's important to note that a DIY portfolio rebalance can be a somewhat tedious process. This is especially true if you have multiple investment accounts. But if you want to give it a try, take a closer look at our full article. 

Robo-Advisors

A robo-advisor can make the process of rebalancing a breeze. With the right robo-advisor, you can skip the process of sorting through your investments. Instead, you can set up a plan that provides parameters for your ideal asset allocation. With that information, a robo-advisor can follow through on the details for you.

Want to take advantage of this easier rebalancing opportunity? Here are a few of the best robo-advisors that can help you out!

These are just three of our favorite robo-advisors. If you want to rebalance regularly without the hassle, then take some time to find the best robo-advisor for your situation.

Target-Date Funds

If you want the best of both worlds, then target date funds could be the right solution for your rebalancing needs. Although you won’t working with a robo-advisor, you won’t have to dive into the nitty-gritty details of buying and selling assets either.

A target date fund is based on your expected retirement date. Essentially, the fund will rebalance itself to match the appropriate risk for your age. This can provide a happy medium for investors that are comfortable investing in mutual funds. 

Final Thoughts

Rebalancing is an important component of building an investing strategy that is successful in the long term. Take some time to consider your options to consistently rebalance your portfolio and choose a strategy that aligns best with your investment preferences.