College is expensive. In fact, the average college costs are rising approximately 7% each year.
For many families saving for college involves a critical question: How much of your annual savings should you commit to future college expenses versus saving for your own retirement?
Significant planning is critical to find the correct balance between saving for college expenses and saving for your retirement. A careful and thoughtful analysis of your financial resources and educational desires of your student will result in the best possible plan for your situation.
Once a plan is in place for determining your level of college funding, numerous options exist for effective education savings including section 529 plans and Coverdell education accounts. College savings plans include unique benefits and restrictions. By planning properly, both you and your student can benefit from the unique strengths of each account type.
Early planning can be the key to successfully navigating the college planning decision process. We can help you with finding the right balance between saving for college and saving for your future.