In today’s dollars, the average cost of a four-year college education is over $250,000, according to 2016 data from The College Board. Assuming a five percent annual increase, in 18 years, a four-year private college education is likely to cost over $600,000 per child. The more children you have, the most expensive it will be to fund their college education. That’s why college financial planning is critical to discuss now – not later – with one of our financial professionals. We can help you with college financial planning that will help you meet your goals.
The number and age of your children are important to factor in when you begin to save for college. You also need to look at other financial goals and constraints you have in order to come up with a realistic college financial savings plan. We understand that you want your child to be able to attend the best college possible based on his or her acceptance. However, you may not be able to afford a four-year private college for your kids. That’s OK. We’ll help you set up a college financial planning map that takes into account your whole financial picture and other future goals that also need to be funded, such as your retirement.
We offer a variety of college education savings options, including 529 plans and Coverdell Education Savings Accounts. The 529 savings plan for financial college planning is a plan operated by NextGen of Maine and managed by Merril Lynch that allows you to save tax-free dollars toward future college costs. The funds you save can be used toward any college nationwide. Unlike a mutual fund, you will not be taxed when you withdraw funds from a 529 Savings plan to pay for college-related expenses. Like the 529 Savings Plan, a Coverdell Education Savings Account (ESA) allows you to save tax-deferred dollars toward educational expenses. Unlike the 529 savings plan, the Coverdell ESA also allows you to save money for primary and secondary education.
College financial planning can seem overwhelming, which is why the most well-intentioned parents put off saving for college until much later in their child(ren)'s life. At Richard Brothers, we help demystify the college savings process and work with you to better understand the best long-term savings plan for your family’s needs. Then we get you started on a solid investment plan, so you won’t be up nights worrying about how you are going to pay for your child(ren)’s college expenses.
Interested in more information on how Richard Brothers can help you successfully implement a college financial savings plan that will enable your child to attend college? Request a free consultation with one of our financial professionals.