We talk a lot about piece of mind here at Wealth Solutions Group. It’s one of the main reasons we do what we do as financial advisors. Previously I talked about life insurance and the security it can provide. But now here we are in September and schools are starting to come back into session all around us. This brings to mind that roughly 2.2 million students head to a college or university this time every year. The costs of doing so never quite seem stop rising, and the amount of debt students take on to finance their learning is ever growing. There are ways to have piece of mind about the rising costs of attending a college or university.
So, what does this have to do with us at Wealth Solutions Group? We offer something called a 529 college savings account to help defray the costs of attending college for your child or grandchild. It is a wonderful tool to help put away funds and invest them in a way that will grow tax free as long as they are used for educational purposes when withdrawn. We would love to talk with anyone about the finer details, but anyone who has a child grandchild or family member they’d like to help save for college should consider a 529.
The average cost of a one year of a college education nationwide according to the College Board was $25,290 per year in the 2017-2018 school year. Expressed over the traditional 4 years this is a commitment of $100,000 or more. This stands to reason when the Institute of College Access and Success then published that 69% of all graduating seniors ended up with student debt at an average of $28,950 per borrower.
We don’t bring this up to scare anyone off of sending their child to college. To the contrary, we’d like to help you plan and prepare for when your child or grandchild reaches the age that this investment in their education will need to be made. It’s never too early to start planning for when that time comes, you can contact us today and schedule an appointment and we can discuss a 529 college savings plan and if it is an option for you and your future scholar.
Investments in 529 plans involve risks to principal and may involve additional fees such as enrollment charges and annual maintenance fees. 529 plans offer no guarantees. Depending on your state of residence and the state of residence of the beneficiary, the plan may or may not be eligible for state tax benefits. There are exceptions to the gift tax and estate tax exemptions; please contact a qualified tax, legal or financial advisor for more information prior to investing.