Recent history shows college costs inflate more than normal goods and services. This can make planning and paying for college difficult for parents and grandparents. There are a variety of savings vehicles to use, but how much should you be saving and which vehicle is right for you and your child?
As college cost continue to increase (at close to twice that of the historical inflation rate), it is imperative to review which college plan makes sense for your child. Our college funding projection technology allows you to see the actual cost of various state and private universities and how this cost will impact how much you need to save and how you should invest your savings.
There are various ways to save for your child/grandchild’s education, but which option makes sense for your family? While you could pay out of cash flow or apply for scholarships, there are several other savings accounts that you can utilize. 529 plans are a great option for those that are looking for tax deferred growth and tax free distributions. However, if you need liquidity, you may consider an individual or joint account. If your child does not go to college, maybe you should evaluate UGMA/UTMA accounts. Selecting the correct funding strategy depends on your goals and objectives. We will educate you on which strategy might make sense for your family.
Similar to retirement savings, the longer time frame you have to save, the more risk you can accept. The appropriate amount of risk depends on many factors, such as: how much you have already saved, what you are currently saving. Furthermore, we will work with you to help determine when you should start scaling back risk.