College education occupies a large portion in the financial planning of many families. It’s been quoted in recent data from the U.S. Census Bureau that the college educated employees tend to earn as much as two times that of their non college educated peers.
College Education is a Tremendous Edge but an Enormous Expense
The ever-increasing costs of college education is a disheartening experience for many By the time a newborn gets to the age of entering college, educational expenses are estimated to increase by 4-5 times. The last decade, especially, has witnessed a dramatic increase in the educational expenses. A lot of people, over the concerns for their future and prosperity of their children, have been moved to form plans to bear ever increasing educational costs.
Prudent management and well-advised decisions have a pivotal role in surmounting the enormous challenge of paying for your child’s college tuition.
Educational planning can help ensure a decent education and living for your child, but it is not without challenges. While putting together an education plan, there are many options available each with its own benefits and drawbacks. For instance, opting for prepaid tuition plans will disregard the inflation over the years leading to your child’s enrollment in college. It essentially enables you to pay for the college tuition, lying years ahead, at the current rate. Then there are savings plans. These allow you to open a special account for college education and set up an investment strategy. Withdrawals from these accounts are tax-free, provided they are for funding your child’s education. Parents face multiple decisions while deciding on the appropriate strategies to fund your child’s education.
Which plan is most compatible with my needs and already placed financial strategies?
Will the prepaid tuition purchased be applicable to private or out-of-state colleges?
How will my educational plans affect the prospects of getting financial aid and scholarships?
What if my child decides not to get a college education? What will become of the funds in the savings account?
What are the penalties for withdrawing funds early from an educational savings account?
Start soon and consult with your advisors to secure your child’s future
The key for achieving the goal of your child’s education is to start early. I t will give you the room to adjust your investment plans for most desirable outcomes.
At Zehnder Wealth Management, we acknowledge the importance of sound education for your children. That’s why we want you to achieve your educational goals in most efficient and affordable.We believe in forming comprehensive, individual educational plans. We evaluate all the possible options and recommend what’s best for you and your child’s future.