RATIONAL INVESTING
IN AN
IRRATIONAL WORLD

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THE STRONGEST PRINCIPAL
OF GROWTH
LIES WITHIN HUMAN CHOICE

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RETIREMENT PLAN CONCERNS?
CALL A PAISLEY ADVISOR
AND SLEEP EASY TONIGHT

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Active Strategic Management

  • Wealth Management / Financial Planning

    Wealth management is an investment advisory discipline that incorporates financial planning, investment portfolio management and a number of aggregated financial services. Contact a Paisley Financial Associate to learn more about how we can provide for you. 

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  • 401 K Plans

    A 401k retirement plan is a special account funded through pre-tax payroll deductions. Funds in the account can be invested in stocks, bonds, mutual funds or other assets, and are not taxed on any capital gains, dividends, or interest until withdrawn.

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  • IRA Rollovers

    An IRA is an Individual Retirement Account, and provides either a tax-deferred or tax-free way of saving for retirement. There are many varieties of IRA's please read more on the link below to see which is right for you.


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  • Educational Plans

    A 529 plan is a tax-advantaged investment vehicle in the United States designed to encourage saving for the future higher education expenses of a designated beneficiary. Many different plans exist. Learn more to see which is right for you.


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  • Alternative Investments

    Alternative investments are instruments such as physical gold or other commodity based ETF's such as oil or lumber which can be used as a hedge or inflation hedge against an overall portfolio.

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  • Independent Research

    Paisley Financial provides timely and accurate research on markets, companies and industries. Our team offers more than three decades of experience as well as time held relationships with industry experts that will bring the highest quality of knowledge to our customers.

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Bright Start Program 

Paisley Financial handles all types of College savings plans and because we fully believe in the importance of education we charge no fees directly or indirectly for management of those assets so long as the owner of the plan currently has their assets under management with us.

529 Plans are the most commonly used savings tool for college education nowadays. They are named after Section 529 of the Internal Revenue Code. 529 savings plans provide a tax-advantaged way to save for qualified higher education expenses such as tuition, books and room and board. Investments grow tax deferred, and qualified withdrawals are federal tax free. These plans are generally sponsored by individual states, while plan assets are professionally managed by independent investment firms or state government agencies. Anyone can open a 529 savings account regardless of income level and contribute up to $13,000 ($26,000 for married couples) a year without gift-tax consequences as of 2009.

Any U.S. resident can invest in a Bright Start program. There are no income or state residency restrictions. Corporations, partnerships, trusts, and charitable organizations can also establish and own accounts. Any U.S. resident can be the beneficiary of a Bright Start account. For instance, you can set up an account for your child, grandchild, spouse or someone who is not related to you. If you are planning to attend college or graduate school, you can open an account for yourself.

Funds can be used at any accredited public or private post-secondary institution in the United States and abroad. This includes most two-year and four-year colleges and universities, vocational and technical schools, graduate schools, professional, medical and law schools. Most schools assigned a federal school code by the Department of Education are eligible. We suggest you perform a Federal School Code search and confirm with the school.

Eligible higher education expenses include tuition, books, supplies and equipment required for enrollment. Room and board are also included during the academic year provided the beneficiary is enrolled at least half-time.

An important factor for determining federal financial aid eligibility is the expected family contribution. When figuring the role of 529 plan assets toward that contribution, the following points are considered:

o If the child's parent is the account owner, the account assets will be treated as assets of the parent
o If a dependent child is the account owner, or the beneficiary of a Bright Start account holding assets transferred from a Uniform Gift to Minors Act (UGMA) or Uniform Transfer to Minors Act (UTMA) account, the account assets will not be counted

If the beneficiary receives a scholarship for higher education expenses, you can withdraw an amount equal to the value of the scholarship from your account(s). Earnings on the amount you withdraw would be taxed at your tax rate but will not be subject to an additional 10 percent federal tax.

If my beneficiary does not go to college, as the account owner, you always have control of your withdrawals and have the following three options:

o Keep the funds in the account. Since there are no age restrictions on the investments, they will be available in future years if the beneficiary changes his or her mind about school
o Change the beneficiary. You can change your beneficiary at any time, provided that your new beneficiary is a qualified family member. You should consult your tax advisor to determine whether this may create a taxable gift
o Make a nonqualified withdrawal. Earnings will be subject to federal income taxes and any applicable state income tax, as well as an additional 10% federal tax

Coverdell Education Savings Accounts offer similar tax advantages but contributions are limited and may not be sufficient to adequately fund a college education. In addition, Coverdell accounts restrict who can contribute, based on income levels.

You can open a Bright Start account with as little as $25 and subsequent contributions can be as small as $15. The maximum contribution limit is $320,000. Plan contributions are deductible from your Illinois state taxable income, up to $10,000 ($20,000 if married and filing jointly) per year, including the contribution (but not earnings) portion of rollovers from other state 529 plans. Call us for information regarding deductions outside of Illinois. You can take money from your account at any time. However, if the money is not used to pay for qualified higher education expenses, earnings will be subject to ordinary federal income tax and any applicable state income tax, as well as an additional 10 percent federal tax.

You can open an account in Bright Start with money from my children's UGMA/UTMA account. You must first redeem your current UGMA/UTMA account. The conversion of non-cash UGMA/UTMA assets will be a taxable transaction. You may also roll over money from another 529 plan to Bright Start Savings. You can either make a withdrawal from the other Plan and send it to us within 60 days of the withdrawal, or have us obtain the money from the plan directly.

If you have any questions on saving for your children's future please give us a call to see how you can start.

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