Will you have a child who can one day go to college? If so, then you have arrived at the right location. We'll send you our best college savings tips in this post, irrespective of whether your child is 10 years away or 1 year away. We also have tips for them. Let's face it and it can be difficult to save and pay for college. Knowing how much to save for college, what types of accounts to use (529 Plans, UTMA / UGMA accounts, IRA's, etc.) and how to spend the money will paralyze you. And, this is only when you really save for college. If your child comes into school within a couple of years, you now have a whole new range of questions to ask.
When do I even continue the process of finding the right university? Have I saved enough for college? What is FAFSA and the CSS? And, the list goes on and on and on and on. I hope you are seeing the argument that we are making. I hear you plain and clear. That's exactly why I created this article so I can share some of my favorite college savings tips with you that I usually reserve for clients only. Of course, these are all common thumb rules so please don't feel like they'll all apply to you. Others will, though, and I can almost guarantee that something new will be taught. Feel free to share your feedback and if you have any questions reach out.
If you decide that your target is within the range of 25-50 per cent then I would suggest that you invest your money in a 529 program. If you want to save more than 50 percent for education, then I'd cap the 529 contribution at 50 percent of the total cost of tuition and put the balance in an education-assigned taxable account. It would give you more access to it, but not everyone is locked into a 529 program. Many states allow you to deduct 529 state tax contributions. Check if this is allowed by your state and if there is a limit on the maximum donation to still get the deduction.
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