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College Funding Strategies

We all agree that education is important, right?

Many parents want to pay for some, or maybe even all, of their children's college. If you feel this way, you may be thinking when do I start saving?  The answer-yesterday!  While this is a tremendous gift, it also happens to carry a heavy price tag! So the sooner you start a plan, the better.

Next, what is the best way to save for college?  It depends. There are a number of different strategies available to you.  While socking money away under your mattress is an option, the federal government offers programs that may work a little better. With college costs up 1,120% since 19781, parents and grandparents need all the help they can get!  

Certain college funding vehicles offer:

  • Market Exposure
  • Tax Deferred Growth
  • Tax Advantaged Withdrawals
However, there is also a market risk and there may be limited flexibility (i.e. MUST be used for education, otherwise subject to taxation plus a 10% penalty).

Be sure to fully educate yourself on the pros and cons of different college funding strategies before you decide your course of action.


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