COVD-19 put a pause on the college lifestyle but not how expensive it could be. Our lifestyle and how we live our lives could change in an instant. We have to be ready for anything that life throws at us. Many of us have already built a foundation for our lives but our children are at most risk for the future. We have no idea what could happen next. We need a plan to protect our children’s future. Our job as parents is to guide them and have them ultimately decided on their future.
College isn’t getting cheaper and that is why it’s important for them to have a college savings plan. The younger they are results in a cheaper college savings plan. “Those of us that were lucky enough to graduate college with student loan debt (sarcasm) can tell you first hand how powerful a college fund can be to your child’s future. There are many benefits of contributing to a college savings plan for your children—both financial and non-monetary.”
There are many benefits in starting a college savings plan for your child(ren) and let’s explain why.
Peace of mind
With college so expensive, there will be no greater peace of mind knowing that your child(ren) college tuition is paid off for at four years.
“There are many tax benefits to contributing to a college savings plan. For example, a 529 plan allows you to tuck tax-deferred money away for college expenses, and withdrawals used for college-related expenses are also tax-free. Essentially, any interest earned on your investment grows tax free! In addition, many states allow a deduction from or credit against state taxes for all or part of the contributions, so if you live in a state that requires state income taxes, you could get an additional deduction. These 529 plans do not require you to file an IRS gift tax return—a big money saver. ”
There are many different options when choosing the current savings plan for college. For example, a very popular 4-year plan have you contributing a monthly amount until the child reaches 18-years-old. The monthly amount is based on the child(ren) age and the average amount of the state’s college tuition is currently.
Don’t hesitate in contacting Comfort Insurance and Finance and learn how easy we could help you prep for your child’s future.