What are your summer plans?

Do you have a job lined up for the summer? Are you planning a great vacation? Taking a summer class? Whatever you’re up to, we want to know about it! Take our poll to let us know what you’re plans are this summer…

ScholarshipPoints members, login to ScholarshipPoints now to redeem the code SUMMERPLANS for 15 scholarship points. Code expires on Wednesday, June 1st, 2011.

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Tools to Negotiate Car Deals in a Tough Market

Courtesy Edmunds.com

As you may have read, this isn’t expected to be a great summer to buy a car, whether you’re looking to buy new or used.

Price increases from Japanese manufacturers due to the tsunami and the subsequent nuclear disaster, combined with tight supplies and higher prices of used cars, are making steals hard to find. (The average price of a new Honda Civic has risen more than $1,600 since March, according to the auto site Edmunds.com.)

But there are some online tools that can help you calculate what your estimated costs will be, so that you’re in the strongest position possible to negotiate with a seller. EBay, for instance, recently introduced an auction app for the iPhone.

Now, Edmunds.com is making available a simplified “foursquare” calculator, which mimics the process dealers use to crunch sales numbers.

As its name suggests, the calculator has four components: the estimated cost of the car you want to buy; the estimated cost of your trade-in; the impact of your down payment; and the cost of your loan if you’re financing.

You enter your ZIP code, the kind of car your want to buy, the kind you have to trade in (which might be worth more than you think because used cars are commanding premium prices) and the amount of your down payment. Then, it spits back numbers including what your monthly payment would be at a given interest rate. You can print out the one-page summary and take it with you to refer to as you negotiate.

Along with the calculator, Edumnds offers these summer car-shopping tips:

If you don’t absolutely need a car right now, wait until the fall and re-evaluate the market.If your lease is expiring this summer, ask about extending it for a few months.Consider buying out someone else’s lease as a bridge until inventories improve. One place to do this is LeaseTrader.com.Used cars aren’t always the best deal. Many one-year-old cars are almost as expensive as new ones, especially if you finance the purchase.

Are you in the market for a car? What kind of pricing have you encountered?

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Saving for College

There are a lot of ways to save for college, and some can be better than others. In this blog I’ll describe some of the best college savings options and what the advantages and disadvantages are.

529 Plans are education savings plans based on state. Each state has different requirements and fees so it’s important to check your states restrictions before opening a 529. There are 2 types of 529 savings plans- Prepaid tuition and College Savings plans.

Prepaid Tuition Plan- Prepaid tuition plans allow parents to lock in a tuition rate and save for a particular school’s tuition.

Advantages:

Lock in a tuition rate before inflationDoes not cover expenses

Disadvantages:

Applicable for one schoolResidency restrictions

College savings plans- These plans allow tax advantaged money to be deposited into an investment account for the beneficiary. Investment choices include stock mutual funds, bond mutual funds, and money market funds among others.

Advantages:

If you invest wisely, 529 plan can grow without making further depositsCovers any school expenses

Disadvantages:

Will reflect the stock market, so you can end up losing money

With savings bonds, the owner must be at least 24 years old (will not transfer like other savings plans) and any interest is tax free if used on qualified education expenses. The bonds must be cashed in the year you are paying tuition.

Advantages:

Disadvantages:

Interest exclusion can be gradually reducedCan have complicated rules

These are a type of custodial account created on behalf of a beneficiary for qualified education expenses. Like 529 plans, you have the option to invest you money, but unlike the 529, Coverdell Education Savings Accounts allow you to invest in almost anything.

Advantages:

Nearly unlimited investing optionsCan make tax-free withdrawals to cover private elementary and secondary education expenses

Disadvantages:

Annual contribution limitsExcise tax on excess contributions

Custodial accounts are accounts made by an adult (could be parent, grandparent, guardian, etc.) With these accounts the holder can deposit assets, money, antiquities and other income into an account for the minor to receive when he or she turns 18.

Advantages:

No penalty for education withdrawalsFirst $950 is tax-freeAnyone can contribute and there are no income or contribution limitations

Disadvantages:

Money can be used for anything (not just education) when the child reaches age of majorityYou can’t switch the account to another family member

Now that you know about the basic savings plans, here’s a tool that can help you decide which one is best. The college savings calculator can provide estimates based on interest, expected tuition cost and the number of years you want to save.

Additionally, we’ve put together a chart to help you compare college savings plans.

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