In regards to College Planning and according to higher education reports, tuition and mandatory fees consistently rise every year, but state spending for higher education in numerous ways is decreasing. Along with rising costs associated with higher education, there is an even greater danger after an individual graduates. The average graduate of 2014 is leaving school with an average of $33,000 in debt. The total student loan debt is over 1.2 trillion and climbing.
WHEN OUR ECONOMY COLLAPSED IN 2008, COLLEGE TUITION ROSE BY ALMOST 6%!!
According to Forbes.com, of this $1.2 trillion in student debt, about $1 trillion is in federal student loans. This figure does not tell the full story, however, as the $1.2 trillion does not include funds students must divert away from retirement savings, parent borrowing, or credit card debt. This phenomenon has greatly affected the financial situation of those in their 20’s by stunting long term savings, investing, delaying home purchases and often their independence as young adults. According to the College Board, the average cost of tuition and fees for the 2014–2015 school year was $31,231 at private colleges, $9,139 for state residents at public colleges, and $22,958 for out-of-state residents attending public universities.
Therefore, If college planning is part of our children’s future, then being educated and funding it without significant amounts of scholarship money has to be planned for, and the earlier the better. But then what? Is it possible to make that contribution continue to perform for them beyond the years in the dorm?
For college planning, Individuals must be educated on accounts that can factor in for education, while not decreasing the amount one is saving for their retirement. For college planning, We will educated you on assets that will help financial aid for college, NOT hurt it. Lastly, we use assets that are not controlled by the government, therefore we have great CONTROL over those dollars than certain temporary government sponsored education funds.
Most Individuals do not factor in Opportunity Costs or Measure the Costs of Saving for College and Retirement. Every dollar has a purpose and we want to make sure that one can position their wealth to do multiple jobs for college.
Therefore, in today’s economy one must objectively look at all angles, analyze one’s own financial portfolio, time, and utilize efficient strategies for planning with higher education. Currently, there are several options for investing or savings for higher education. We plan to lead and educate you on what is out there. Factoring in Opportunity costs, Safety of earnings, tax treatment of the plan, and inflation is absolutely essential with any higher education funding.
Schedule a consultation below to see how we can maximize your cash flow for higher education needs, while not hindering your goals for retirement.