Personal finance tips: Beware of power-sucking appliances, and more

A very early 529 gift

Why wait until a child is born to start a 529 college savings plan? asked Peter S. Green at The Wall Street Journal. Anyone hoping to become a grandparent one day can open a 529 to "get the savings ball rolling early." A future grandparent who designates the beneficiary as the future parent can contribute as much as $70,000 in a single year tax free (equal to five years' worth of contributions at $14,000). When the infant arrives, the account can be transferred into his or her name. Starting early has major benefits: A 529 plan opened with an initial gift of $14,000, five years before a child is born, funded with $500 every month, and earning interest at 3 percent compounded monthly, would yield $226,784 by the child's 18th birthday. The same plan started at birth would yield $167,336.

IRA and 401(k) changes in 2015

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Some taxpayers will be able to save more in their retirement accounts next year, said Emily Brandon at US News & World Report. The annual limit for 401(k)s and 403(b)s has been raised by $500, to $18,000. The IRA contribution limit has been left unchanged at $5,500, or $6,500 if you are 50 or older. Savers will also soon have a new account option: the myRA, the no-fee Roth IRA accounts offered by the Treasury Department and available later this year. The accounts are open to individuals who make less than $129,000 a year ($191,000 for couples) and are guaranteed to never lose value. And for those savers with several IRA accounts, a new rule takes effect Jan. 1 prohibiting more than one rollover from one IRA to another in any 12-month period.

Beware of power-sucking appliances

Don't let "vampire appliances" bleed your bank account dry, said Catey Hill at MarketWatch. "Even when you're not using electronics and appliances, they may still be sucking up energy" and costing you hundreds of dollars a year. Utility experts estimate that roughly 10 percent of the average household's energy bill is thanks to power-sucking appliances. Flat-screen TVs are often the priciest power drain, and though it's impractical to unplug your TV each day, one option is to buy an advanced power strip, which prevents electronics from using power when they're not in use. At a cost of $15 to $30, the strips will "save you money in the long run." Experts also recommend using the power strips to plug in video game consoles, cable boxes, laser printers, and small kitchen appliances.