Page 3 - Official April Newsletterl.pdf

3 College Saving Strategies
For Adults and Students

The numbers are staggering: 71% of students come out of college with loans,
with average debt per graduate at $29,400 and a monthly payment around $351.20.
Combined student and parent education debt of $1 trillion nationwide exceeds all
outstanding credit card balances combined.
These statistics aren't that surprising, considering four years at a private
university just topped $169,000. The good news? Higher education continues to
offer a significant return on investment, with college graduates earning twice as
much as those without degrees.
With student loan debt and education costs at all-time highs, many parents
struggle to make the right trade-offs between keeping their kids out of debt and
staying on track to a confident retirement.
When it comes to your child, saving for college without impacting your own
financial future can be challenging. However, when you work with a financial advisor
on an education savings strategy - it may be possible. Follow these steps to prepare
a college fund that aligns with your family's goals.
Your advisor can assist with projecting future educational costs, addressing
more complex planning needs for multiple children and finding the best savings
strategy for your goals.
Her e ar e thr ee education savings vehicles that could help you stay ahead of
r ising costs.

1. 529 Saving Plans
Commonly referred to as "the 401(k) of education savings." This popular savings
vehicle allows funds to accumulate free of federal taxes. M any states offer tax
breaks as well, including deductions for contributions and tax exempt withdrawals.
The best part? Distributions aren't taxed as long as they're spent on qualified
education expenses. Nearly every state offers at least one 529 plan, and the funds
can be used at any accredited college or university in the country (as well as some
foreign institutions).
Some 529 accounts don't provide an adequate selection of investments to
balance risk and growth. Your advisor can help you select a plan based on
individual needs and goals.