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College Funding Strategies |
| Funding a college education today is no small
feat. Costs are spiraling. The best technique for paying for education is PLANNING!
The real question is where do you start? The answer has never
changed. Basic financial planning principles suggest the first place to
start is with income replacement of the principal income producers.
Adequate life and disability insurance can fund a college education in the
event of premature death or disability. Investment plans are great.
However, if you can not fund the plan due to loss of income, your
investment plan will not grow. The best strategy uses a combination of the college funding methods listed below. Click here for a College Financial Aid Primer. .Need help? We are only a call or e-mail away. |
Ask yourself...do you have enough life insurance to cover the cost of a college education for your child or grandchild? How much is enough? Find out how much life insurance would be suitable for your needs. Click here for a free term life comparison. |
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Investments Today there are several different types of college funding investments available. They include UTMA accounts, the Coverdale Education Savings Account and the 529 Plan. Click here to view the college funding comparison chart. In addition you may use contributions from your Roth IRA and other liquid savings to fund college expenses. |
| Grants/Scholarships/Student
Loans
Click here and scroll down until you find links to college funding resources. Researching various types of financial aid that may be available is time consuming but may turn out be very worth while. |
| Debt
Taking equity out of your home is another method of funding higher education expenses. |
| Gifts
Individuals may give up to $13,000 annually to anyone without having to pay gift tax or reducing their lifetime estate tax exclusion. |
| Savings
Other methods of accumulating dollars for college expenses include bank savings accounts, U.S. Savings Bonds, zero coupon bonds, and annuities. You need to carefully review all the options available. Consider if you feel comfortable having these dollars subject to market risk. Some programs offer creditor protection, tax deferral, guaranteed minimum interest rates and no market risk. If you have questions about any of these programs or options contact Retirement Council, Inc. for a College Savings Review. |