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.

1. http://www.bloomberg.com/news/articles/2012-08-15/cost-of-college-degree-in-u-s-soars-12-fold-chart-of-the-day

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