Are your kids entering high school? It’s never too late to start planning to fund college expenses. Are your kids still little? It’s never too early to start either with the high cost of tuition continuing to rise. Here are a few reasons to start building your college funding plan now.
- Over a 10-year period, public four-year colleges have gone up in tuition by 30% and private colleges have gone up by 25% (and that’s with the numbers adjusted for inflation).
- Give your investments time to grow – There are a number of ways to save for your child’s future education, and most of them involve investments. While setting up a savings account will provide the least growth, it could still be sizable if you start early.
- Utilize retirement fund exceptions – A Roth IRA usually requires that you wait until age 59½ before you can withdraw money without a penalty. However, there are a few exceptions. While some of those exceptions are health related, there are also certain exemptions for qualified spending, including buying your first home or (here’s the important part) qualified education costs.
Financial Planning for Parents of College Hopefuls
If you are planning on helping your children financially with their education, then now is the time to start saving. College Planning Source is happy to assist parents with financial planning for college. Call us today at 858.676.0700 to learn more, or you can submit the online contact form for a callback.