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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. |
Insurance
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. |
|
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 $12,000 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. |
