Determining the best way to save for your child’s education can be one of the trickiest aspect of financial planning. With tuition at all-time highs and still trending upward, including college savings in a financial plan is imperative. Saving for education is an investment in your child’s future, and we have found that one can never start too early. Unfortunately, we see that many families do not realize that they have not saved enough for the cost of education until it is too late. Student loans inevitably fill the gaps left by poor planning, creating financial stress for the family and the student.
For most families, it is unlikely that parents alone will be able to save for the full cost of higher education. Fortunately, there are many options available to help so that they do not have to shoulder the entire financial burden alone. The 529 Plan is the government’s gift to cash-strapped parents looking to save for their child’s education. 529 Plans allow multiple family members to contribute to a child’s education, and the appreciation of these contributions is tax-exempt if used to fund educational expenses. This presents a clean and simple way to help pay for a now expensive college education.
At Steel Peak, we understand your concerns for your child’s future. Our advisors, many of whom have children themselves, can work with you to build a savings schedule to ensure maximum long-term savings and growth while minimizing the burden it places on your immediate future.