If you have young children or grandchildren and you’re wondering when the right time is to start saving for college, the answer is now. Paying for a costly college, graduate or private secondary school education is an eye-opening experience that leaves many wondering how they’ll afford the tuition.
As the cost of a college education continues to rise, it is important to plan for your children’s education as early as possible. For parents starting a college savings plan today, questions will arise as to what is the best vehicle and how much should they save.
Making an investment in the education of a loved one is a gift that will last a lifetime. Unfortunately, the cost of education even at a state-financed school frequently exceeds $100,000 and often $200,000 for a 4-year degree. The when you add in graduate school, in addition to the cost of private secondary school, and the cost of education can easily grow to nearly 1 million dollars.
All 529 plans that are offered by individual states allows your college savings grow free from federal and state tax. However, not all states give you the same tax advantages and a good financial advisor can help you determine which plan is best for your situation. Many families are also surprised to find that there are other tax-advantaged saving options for college beyond the 529 plans.
Lion’s Share can help by factoring this important goal into your comprehensive financial plan. We’ll work with you to determine the right vehicle(s) and appropriate amount to save.