If you are planning on returning to school you need a
personal financial planner. The purpose of a financial planner is to help you
accomplish long term savings goals and make your investment work for you not
against you. Everyone has an opportunity to attend college if they choose, but
not everyone can afford the cost.
Investing in prepaid college plans does not guarantee a
great annual return. Instead, choose a plan that allows flexibility, with the
option to transfer money from one account to another with incurring any fees.
Several educational plans are available to help you get
started, including the IRS tax deferred investment plan 529. Learning more
about the 529 college savings plan and how it works can increase your chances
for success. The good news is it is never too late or too early to start
preparing for a good college education.
According to Dave Ramsey, who is considered an expert
financial planner, parents only get one shot at retirement. As much as they
want to help their children with their college education they have to be
reasonable. His advice on the subject of college savings is to invest in a 529
plan. This means developing a financial plan that will allow savings to occur
for both retirement age and college.
Dave Ramsey’s advises parents and others wishing to attend
college to search for cheaper alternatives. Investing in an insurance policy is
not a good idea, but putting up to $2000 annually aside in a college savings
account allows the money to grow without being penalized. Taking the money
later and investing it into strong mutual stocks can increase the growth by
12%.
College tuition is increasing each year. The cost of
attending a 2 year program in both private and public schools has almost
tripled when compared to the last 2 years.
During the 2010 - 2011 school years the College Board
witnessed an annual increase of 6% in the cost of college tuition. In 2010 the
cost of attending a 2 year public college was $68,800. In 2028 the cost is
projected to be $193,300. Although scholarships and financial assistance helps
in paying for books and other school related activities, it is not nearly
enough to cover the remaining high end costs.
Now is the time to start saving for the kids college
education. Putting aside a few dollars per week out of each paycheck is a great
way to start saving for the future. Money adds up and before long the account
will be funded with more than half the cost of a college education.
It is not easy getting started especially when unexpected
situations occur that can delay or prevent the initial process of saving. The
easiest way to get started is to make a budget and stick with it. Eliminate
excessive spending by cutting back on unnecessary purchases.
If necessary, consult a financial planner about other
educational plans and possible invest opportunities available. Look into
several college investment plans including state funded plans. Choose a plan
that is simple, flexible and transferrable. Investing in the future starts now
and it begins with a college savings account.
Investments For You, Inc.
1040 N Maple St
Marysville, OH 43040
(937) 644-1661
