College Savings Plan
Posted 26 August 2010 - 07:23 AM
If you been thinking about these topics, please contact us at 770 439-4430 or email me at email@example.com Visit us at www.kesfinance.com.
Posted 26 August 2010 - 07:38 AM
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Posted 26 August 2010 - 08:03 AM
Madea, on 26 August 2010 - 07:38 AM, said:
How much should be set aside for college? I've yet to find an answer to that question.
That all depends. First you have to analyze your personal financial situation. We would have to see how much you are taking in versus what is going out. Any surplus can be used for saving for college but first you must have an emergency fund set up (8 months worth of expenses) and insurance in place. Finally you must be putting enough away for your retirement because you can finance college but you cannot finance retirement.
After all that analysis is complete, we can start looking at college savings. We will determine what type of college your child or grandchild would like to go i.e. state or private. We look at the cost of todays prices and forecast that cost to the start date of the child. Since college prices have been growing at a 6% inflation rate, we will use that to determine the future cost of the schooling.
When the cost has been determined and our other major priorities have been met, we will look at the appropriate vehicles to start putting aside for college. Parents will have to remember that they do not have to float the whole bill. That should be the responsibility of the child. As a parent you are there to help not support. You have to think about your retirement first. Remember, there is financing and scholarships available.
I hope this answers your question. If you want to contact me, my email is firstname.lastname@example.org. Visit us at www.kesfinance.com