3 Keys to Education Planning


A college education has moved from being a difference maker to being a pre-requisite for a career in most fields. The problem becomes the insurmountable debt that the college graduate then has to endure for the next 15 years.

Naturally parents and Grandparents want to help. Here are 3 things to think about when funding for college:

  • Many college planning sites provide calculators to figure out the monthly amount needed to save for college. Many college tuition rates are increasing at a pace of 7% to 11%. Do not under estimate the impact of inflation!
  • The savings rate dilemma has created many vehicles or modified them to compliment college funding, i.e. 529’s, ESA’s, UTMA’s, IRA’s, and ROTH IRA’s. Consult an advisor to determine which one may be appropriate for your circumstances.
  • One of the benefits of college funding is the ability to take a 4 year expense and pay for it over 22 years. Don’t look at it as a way to earn more than you are going to spend; the inflation rate will eliminate that. Think of it rather as paying the expanse across a much longer window at a lower annualized cost.


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