SAVING FOR COLLEGE

Start Early And Save Consistently.

How much should you be saving now to pay for all or a part of your children’s college education? What sort of strategies can you use to minimize the cost? What type of account should you use for college savings? 529 plan, custodial account, education IRA or in the parents’ names? Our advisors can also help you with creative ways to obtain a college degree that is affordable.

Our advisors can help you with creative ways to be financially prepared for your children’s college education.

Common Mistakes:

  • One of the biggest mistakes parents make is underestimating the cost of college. They often assume that they will be able to pay for college with their current income or savings, without taking into account the rising cost of tuition, books, and other expenses.
  • Another mistake parents make is not starting to save for college early enough. The earlier you start saving, the more time you have to accumulate funds, and the less you will have to borrow or dip into your retirement savings.
  • Many parents assume that they won’t qualify for financial aid, so they don’t bother filling out the FAFSA (Free Application for Federal Student Aid) or looking into other forms of financial aid. However, even if you think you won’t qualify, it’s still worth filling out the FAFSA to see if you’re eligible.
  • While it’s important to save for your child’s college education, it shouldn’t come at the expense of your retirement savings. You can take out loans for college, but you can’t take out loans for retirement.
  • Many parents limit their options to traditional college savings accounts like 529 plans, without exploring other options like scholarships, grants, and student loans. It’s important to explore all options to find the best fit for your family’s needs.
  • While it’s important to encourage your child to pursue their dreams, it’s also important to consider the cost of their education. It may be more financially feasible for your child to attend a less expensive public university or community college.
  • Finally, many parents don’t have a clear plan in place for how they will pay for college. It’s important to sit down with your family and come up with a plan that takes into account your income, savings, and other resources, and that includes contingencies for unexpected events.

Schedule a complimentary consultation today. No cost or obligation. Just honest and objective conversation.