How Do I Start a College Savings Plan?
In May, we focused on education planning for your family. There are many benefits to starting a college savings plan, including reducing the burden on your children and taking advantage of compounding interest for tuition payments. We are going to dive into the why, when and how families can start to plan for education funding, from our team of wealth advisors.
Why Start a Education Fund for Your Family
There is no one right answer to the why, because it is custom to your family. The first conversation should always be about your family’s approach. That’s why working with a CFP ® like Adam & Eric at AO Wealth Advisory is beneficial. We work with our clients to decipher what factors are most important to you:
Are you looking to fund the entire education?
Are you just looking to lower the financial burden on your children?
Are you looking to do a flat rate education savings plan for all children?
Where do you foresee the higher education going?
Once the plan is settled, the next step is to move onto the when.
Contact AO Wealth
When is the Right Time to Start Saving Up for Education?
Well, in true CFP® fashion, of course we recommend taking advantage of as much compound interest as possible. And if you really want to dive into how compound interest works, try this calculator from Nerd Wallet. A lot of times, we start working with families once a second child is born, and now they are focused on how to fund education. So we meet with the client, and we usually suggest to focus on the oldest child first. The great thing about 529 College Savings plans is that they can roll down to any of your children should they need.
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How to Fund College Tuition
So let’s dive into how you can plan to fund your college tuition. We already dove into the fact you need to decide your approach, and start early; but where do you start?
Write Down Your Funding Goals
Start with the Free Money- Apply for Scholarships
Talk to Your Financial Planner
Research about 529 College Savings Plans
Advisory services offered through A.O. Wealth Advisory, LLC, a registered investment adviser.