College education for a child can be one of the biggest expenses a family will face. There are many things to consider when determining which college savings plan is right for you and your family. Yaegers Financial Services can help outline the advantages and disadvantages of each savings option so you can select whether or not a US Series EE Savings Bond, UTMA/UGMA account, Coverdell Education Savings Plan, or 529 Savings Plan/Prepaid Tuition is right for you.College tuition costs have increased faster than any other household expense in recent decades. Since 1983, college tuition has had a cumulative percent price increase of 798%. Compare that to the 403% for medical care, 169% for housing, and 124% for gas and it is easy to see why paying for college has become such a challenge for many people today.*The bottom line, higher education is expensive. In 2019, the average tuition, fees and room and board expenses for public institutions was $21,950 and $49,870 for private institutions.*Planning for the costs of your child’s education today can reduce the financial burden on your family and help your child avoid carrying that burden with them into the workforce. There are five simple strategies you can do to boost your college savings efforts:
By following these simple steps, one of the biggest costs your family will face can be transformed into a foundation for the future of your children. Yaegers Financial Services is prepared to be there every step of the way to help build that foundation.
Click here to compare the Florida Prepaid College Plan vs. a 529 College Savings Plan
Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing
*Source: BLS, Consumer Price Index, J.P. Morgan Asset Management. Data represent cumulative percentage price change from 12/31/82 to 12/31/18.