Robert Brokamp

30 states have decided to go along with the federal rules.

Three states, Colorado, Missouri, and New Jersey, haven't yet said one way or the other.

California is the only state that has said a 529 to Roth transfer will not be tax-free on the state level.

It will be subject to income tax and an additional 2.5% levy.

Also of note, some states allow residents to deduct contributions to 529s, but if you live in Indiana, Louisiana, Massachusetts, Michigan, Minnesota, Utah, or Vermont, you'll have to pay back that deduction if the money is transferred to a Roth IRA.

What all this demonstrates is that if you live in a state that levies an income tax, check to see whether it will conform to any new tax laws passed by Uncle Sam, especially in light of all the new tax breaks in the one big beautiful bill passed in July.

Now, the numbers of the week, and they are 2.8% to 4.8%.

which is what Vanguard expects as the range of annualized returns from the US stock market over the next decade, according to a recent report, and down a half a percent from a few months ago.

They expect 3.8% to 4.8% from US bonds, so just about the same amount, if not a little better.

The low expectations for US stocks stem from high valuations that just keep getting higher.

Vanguard expects somewhat better returns from small caps, value stocks, and international stocks, but nothing near double digits.

A recent report from JP Morgan Asset Management has a somewhat more optimistic take, with projected annualized returns of 6.7% from U.S.

stocks over the next 10 to 15 years, and also slightly higher returns from international stocks and around 5% from bonds.

Will these projections end up being accurate?

Probably not, at least not exactly.

But I do think it makes sense to assume lower future returns when you do any sort of analysis of your financial plan, such as, you know, using a retirement calculator to determine how much you need to save and when you can stop working.

I've said on the show before that I assume a 6% return when I run my numbers, but given the extraordinary returns we've had over the past few years and today's current valuations, I think I'll notch that down a percentage point.

After all, I'm an older member of Gen X, and we all should be taking careful stock of whether we are on track to retire how and when we want, which will be our next topic of conversation when Motley Fool Monday continues.

Pull out your mixtapes and your John Hughes VHS tapes because it's time to talk about Generation X, that cohort born between 1965 and 1980 that is now or soon will be in the fourth quarter of their careers.

So are they prepared for retirement?