College Planning
According to data reported to U.S. News, the average tuition for the 2019-2020 school year ranged from $41,426 (for private colleges) to $11,260 (for state colleges). That's just tuition per year. Travel, books, and room and board can add thousands more. Also, at a college inflation rate of 8%, tuition costs double ever nine years. Paying for college now and in the future is a daunting task, especially if no planning was done.
So, where do you begin? Here are some suggestions:
- 529 Plan (in-state or out of state)
- Roth IRA
- Coverdell Education Savings Account
- UGMAs and UTMAs (Uniform Gift to Minors Act and Uniform Transfers to Minors Act)
- Permanent Cash Value Life Insurance
- Mutual Funds
- Savings Bonds
- Home Equity Loan
Each of these options has advantages and disadvantages. Austin Manning Wealth Management, based on your financial situation and timeframe, can help you decide which options are best for you and your child.
Questions to consider and discuss
- What is the FASFA, and how does it work?
- What types of accounts are reported on the FASFA?
- What’s the difference between a Direct Subsidized, Direct Unsubsidized, and Direct PLUS Loan?
- How can I get free money for college?
- Do SAT or ACT scores really matter?
- What are the advantages and disadvantages of borrowing from a 401(k)?
- How can we save 20 to 30 percent on the cost college?
Austin Manning Wealth Management has been helping families save for college since 2002. Schedule a free consultation today.