Education Planning is Just Plain Smart

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An education can add a lot of value to a career but the costs of secondary and higher education have been rising every year. Students leave college and grad school with mountains of student debt that will take them a lifetime to repay. Worse yet, if you have young children, the cost of their education will be significantly higher than it is today. All of this is tarnishing the dream of a higher education.

Despite rising costs, you probably still want your children to have the option of a higher education. But do you know how to pay for it and still achieve your other financial goals?

The place to start is education planning.

Education planning is creating a financial plan to pay for your child’s education.

Much like retirement planning, the earlier you start with education planning the better off you’ll be. Sound Advice Financial will start with learning your goals and needs. Public university or private? Will you provide all the funding or just a portion? Will student loans be utilized? Then we’ll help you estimate education expenses and explore funding alternatives and strategies for now and for the future.

The time to start planning for tomorrow’s education is today and it starts with a plan.

Education costs are a significant part of a family’s financial picture, but there are number of options to help. To explore these options, we start with a plan. Sound Advice Financial will help you create a plan, set goals and explore options to determine which best meet your needs. We will:

  • Help project future education costs, taking timelines and education options into consideration
  • Examine your current financial situation and provide financial guidance on how to allocate and diversify your investment dollars
  • Optimize your tax liability with advantageous tuition plans and tax credits
  • Explain how money you set aside for college impacts your financial aid eligibility
  • Monitor progress against your goals and make adjustments if and when they are needed

Maximizing your resources through smart, efficient investing is just as important as getting and early start on your education planning. Fortunately, there are several attractive tax-advantaged education savings and investment programs, including:

  • 529 college savings plans offer tax-deferred earnings and tax-free distributions for qualified college expenses such as tuition, room and board and books
  • Coverdell Education Savings Accounts (ESAs) offer similar tax advantages for qualified elementary and high school expenses, not just college expenses
  • Uniform Gifts to Minors (UGMA) and Uniform Transfers to Minors Accounts (UTMA) are custodial accounts where assets are held for the benefit of a child for education expenses

Sound Advice Financial helps ensure you plan well so your loved ones will have a bright future.