A college education is one of the most expensive, long-term and invaluable purchases that a family will make. If there are multiple children in the family, the scope of the endeavor also multiplies.
Today there are a number of effective ways to save for college and determining the best vehicle can be overwhelming. Things to consider are the length of time before money is needed, potential for growth, risk of loss, tax implications, ownership and control, ease of management, and fees and expenses. Because the cost of education is growing an average of 6% per year, the same program today will cost three times what it does for children who will begin their higher education 18 years from now. Planning today will provide the most options and flexibility in the future.
Depending on your state of residence, you may be eligible for tax deductions or credits of you choose to utilize a 529 plan to fund your child’s education. This should be discussed with your advisor and tax planner.