Your Big Tax Refund Could Be Costly, 5 Easy Steps to a Roth IRA, The Power of the 529 ‘Grandparent Loophole’

Nine Common Wealth-Building Mistakes You Might Be Making | Use the 529 Grandparent Loophole to Maximize College Savings | How to Open a Roth IRA in 5 Simple Steps Created for {EMAIL} | [Web Version]( March 14, 2024 CONNECT WITH KIPLINGER  [LinkedIn]( [Facebook]( [X]( [Youtube]( [Instagram]( [Retirement Tips]( [SIGN UP]( ⋅ [WEBSITE]( [] Wealth [] [Nine Common Wealth-Building Mistakes You Might Be Making]( [Nine Common Wealth-Building Mistakes You Might Be Making]( (Getty Images) Opportunities abound when it comes to making money, but there are just as many paths for making a mistake. The financial experts of [Kiplinger Advisor Collective]( explore the most common [wealth-building mistakes]( - and what people should do instead. [] Your Legacy [] [Use the 529 Grandparent Loophole to Maximize College Savings]( [Use the 529 Grandparent Loophole to Maximize College Savings]( (Getty Images) Using a 529 plan can be a great way to save for the next generation's college education. The [FAFSA Simplification Act]( brought an added bonus: Grandparents can use 529 plans to [fund their grandchildren's college expenses]( without impacting their financial aid eligibility. Here's how. [Increase your retirement income – and make it last a lifetime]( Income annuities are paying 25%-45% more than last year. By balancing guaranteed income and income-focused investments, you can increase your income, lower your risk and minimize your taxes. We can show you your increase with a complimentary Go2Income plan. [Order Your Plan]( ADVERTISEMENT [] Retirement Accounts [] [How to Open a Roth IRA in 5 Simple Steps]( [How to Open a Roth IRA in 5 Simple Steps]( (Getty Images) Withdrawals from a Roth IRA can be made tax-free at a later date. And since the IRS has increased [contribution limits on Roth IRAs for 2024](, you can save even more than in previous years. Here's how to [open a Roth IRA]( in five simple steps. [] Taxes [] [Your Big Tax Refund Could Actually Cost You Money]( [Your Big Tax Refund Could Actually Cost You Money]( (Getty Images) Many people rejoice each year when they [receive their tax refund](, but a big refund could mean you've essentially lent the government money, interest-free. Here's [how much richer you could be if you kept your money]( throughout the year instead of receiving it back as a tax refund. [How Dividend Reinvestments Boost Your Returns]( If you invested in an S&P 500 index fund starting in January 2000 until September 2020 your average annualized return would have been 4.2%, a cumulative return of 136%. But if you reinvested all dividend payments your annualized return would have been 6.2%, a cumulative return of 247%. Just reinvesting dividends would have nearly doubled your gains. 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When mapping out your retirement years, it's critical to have the right information. [READ MORE]( ADVERTISEMENT [] Real Estate [] [9 Tips to Successfully Rent Out Your Home]( [9 Tips to Successfully Rent Out Your Home]( (Getty Images) Homeowners with rock-bottom mortgage rates who want to move should consider [turning their home into a rental property](. But success in operating a rental involves tricky tasks like vetting tenants, drafting leases and making home repairs. Here are nine [tips for first-time landlords](. [] RELATED KIPLINGER ARTICLES WE THINK YOU'LL ENJOY [] [Rising Prices: Which Goods and Services Are Driving Inflation?]( Higher prices for services, gas, clothes and other items contributed to hotter-than-expected inflation in February. [Yes, You Can Buy Gold at Costco - And Now Silver Too]( Costco began selling one-ounce gold bars last year and now members of the warehouse club can purchase silver coins as well. [How to Calculate Your Adjusted Gross Income - and What It Means]( When it's time to calculate your tax bill, knowing your adjusted gross income (AGI) is a crucial first step. [Sign up for free for A Step Ahead: Guidance on how to navigate today's challenges to business, the economy and financial markets.]( ABOUT KIPLINGER When we write about money, we get it right. So the decisions you make with your dollars are also right. Kiplinger is a trusted provider of unbiased financial advice, objective business and economic forecasts, and practical help to millions of business professionals, investors, and individuals seeking to make more profitable decisions with their money. Our [flagship publications]( include [Kiplinger Personal Finance]( magazine, [The Kiplinger Letter]( [The Kiplinger Tax Letter]( [Kiplinger Retirement Report]( and [Kiplinger Investing for Income.]( All are regarded as the leading publications in their respective fields. 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