College is expensive today, and the cost appears to be rising. According to "How America Pays for College", a recent study released by Sallie Mae, in the 2014-2015 academic year, the average family spent $24,164 on college fees, which represents a 16% increase from the previous year.
Whether a college education is a distant dream you hold for a newborn child or a financial imperative staring you in the face, it is important to take swift steps to begin meeting the challenge. Next to retirement planning, paying for your children's education could be the largest expense that your family will bear. Parents and grandparents today have more choices than they have ever had for college savings, from 529 plans to Coverdell Education Savings to Custodial Accounts to Financial Aid. While that variety gives parents and grandparents more flexibility, it also requires that they do more research to make sure they pick a strategy that is right for them and will reduce out-of-pocket college expenses.
Below is a chart that will help you compare Coverdell Education Savings Accounts (ESA's), 529 Plans and Custodial Accounts. The chart features contribution amounts and key benefits that you will want to compare and discuss with us depending on your needs for college funding. Also, be mindful of the fact that there are specific features available in 529 Plans that vary from state to state.
Because College Planning is not just a simplistic, one-size-fits all savings strategy, we invite you to call us to find out more about your specific tailored needs.
