Are your personal savings enough to cover your upper education?
529 plans can be use only for “qualified educational expenses” meaning the IRS not consider a qualified expense, it’s not – health insurance, transportation expenses
529 plans can lose money when there are market downturns
Upper education, whether it be college or vocational school is every parent’s dream for their child and a milestone to be celebrated! What do I need to think about when planning for college? Aren’t all college savings plans the same? No, they are not! Most college savings plans (i.e. 529 college savings plan or Roth IRAs) are tied to the mood of the market and do have tax implications. A&M Futures can help with tax-advantaged strategies that will allow you to grow your college fund with the peace of mind that your account will not go in reverse with market corrections (downturns) and when you use the funds, they can come to you tax-free when you go to use these funds. Our strategies do not have the limitations of a 529 plan or Roth IRA.
The average cost of sending a child to a 4-year public university is over $75,000 today, which means if you have a young child, you can expect to pay over $150,000 when the time comes. If you have more than one child or choose a private school, your total college costs could easily end up totaling more than the price of your home.
According to finaid.org, college tuition is rising at about twice the current rate of inflation. So what does this mean for you when starting a college fund? It means that starting earlier, and knowing what to expect, is the key to being able to afford college. The first thing to consider is choosing an in-state public school vs. an out of state or Private University. In-state schools cost a fraction of what out-of-state schools cost. Researching scholarships and grants before applying to college is a must in today’s world. Another way to save money on college? Find a job that offers tuition assistance!
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