College costs cannot be underestimated as more and more graduates are struggling to pay off their student debt. Education planning will help ensure that your children or grandchildren will have the funds available to pay for higher education expenses.
There are several options when considering education plans including 529 Plans, Coverdell Education Savings Account, and gifting.
As the cost of a college education continues to rise, outpacing the rate of inflation, it is becoming beyond the reach of most people unless they have planned early on. For people starting a college savings plan today, questions arise as to the best way to save.
There are many factors to consider when selecting a college savings plan. As with any savings goal, individual factors such as time horizon, risk tolerance, investment preferences and tax situation need to be considered and weighed in order to select the most suitable savings plan. In addition, special consideration needs to be given to who will actually own the college funds as the decision is likely to impact the availability of financial aid in the future.
Saving for College 101
Saving for College