College Savings Reminders. Investment Options in US TIPS Bonds.
Mariposa Capital Management, LLC
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College Savings Reminders

With the school year ending, now is a great time to review your child's college fund. If you need to make a contribution or set one up, don't wait until December, you can do it today.

529 CONTRIBUTION LIMITS

The federal gift tax exclusion this year is $14,000, which means each parent or grandparent (or anyone else, really) can contribute up to $14,000 for each child. If you want to make an even larger contribution, speak to your tax advisor about making an accelerated gift that uses 5 years of exclusions today.

SETTING UP A 529 PLAN

For most families, our recommended college savings plan is The Vanguard 529 Plan. If, like New York, your state offers tax benefits for using your in-state plan, you should evaluate that plan as well.

Here are our 529 plan recommendations for the most common states among our clients.

State Recommended Plan
California Vanguard 529
Hawaii Vanguard 529
New York New York 529 Direct
Washington Vanguard 529

If your state is not listed, email me and I will let you know which plan I would use.

Featured Article

Investment Options in US TIPS Bonds

The role of bonds in our clients' portfolios -- especially today with extremely low yields -- is that of a shock absorber. It's no guarantee, but bonds generally react very differently than stocks to economic or political surprises, whether it's news in Greece or an economic slowdown here in the US.

To realize this diversification benefit of holding bonds, the bonds held must be of very high quality, otherwise some of the shock absorption feature is lost. The two types of bonds that we primarily consider are US Treasury bonds and US TIPS bonds. Let's discuss TIPS today.

TIPS stands for Treasury Inflation-Protected Securities. The primary difference from a standard Treasury bond is that TIPS are set up to track inflation. If inflation goes up, TIPS will pay its investors a higher return. This feature makes TIPS a popular option for investors who want to protect their portfolio against unexpectedly high inflation.

Before you get too excited, you should know that just like any other interest rate ...

Read the rest of the article

Blog Articles

Investment Options: Foreign Real Estate
When people think about real estate as an investment, most think of buying and renting out a condo or single-family home in their neighborhood. The real estate universe is far larger than ...

The Difficult Path to Investment Success
The toughest qualification for being a successful investor is the ability to stick with a strategy even when it’s not working. Even when the strategy is making you look foolish.

Value and Momentum: June 2015
A look at what our value and momentum analysis of asset classes told us in June 2015.

Interesting Reads

Millionaires Who Are Frugal When They Don’t Have to Be -- NY Times
Recent research shows that single-digit millionaires are generally far more mindful about how they save, spend and invest their money than you would expect.

It’s Here: Bill Gates’ Summer Reading List -- Quartz
As he’s done for the past few years, Gates provides a list of some of his favorite books for those looking for a bit of summer reading.

Michael Lewis Reflects on Flash Boys, a Year Later -- Vanity Fair
Flash Boys, the author’s best-selling exposé of high-speed trading, made some of Wall Street’s richest people very angry.

About Mariposa

Mariposa Capital Management is a boutique investment advisory firm designed for individuals and families who want a more thoughtful way to invest.

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