July 15, 2016
park the college savings

Where do I park the college savings?

“Where do I park the college savings?”, If you’ve got yourself on track financially and you’re ready to start saving for you child’s college expenses then you may be asking yourself where do I put the savings? There’s a myriad of options when it comes to college savings. Today let’s look at where you can park that money to get the most out of it. The most popular way to invest your college savings is a 529 Plan. This is a state sponsored plan that was created in 1996 that allows you to put money in that will be invested in mutual funds, index funds and things of that nature. The great thing about these plans are they grow tax free and can be used for qualifying college expenses. For example, let’s say you invest $10,000 over a period of time and your money grows to $20,000. You can then pull the whole amount out to pay qualified expenses like tuition, books, etc. TAX FREE!!! 529 plans can also be an individual or group plans. Individual plans can be purchased directly from the state or an advisor. Those purchased directly from the state often have the lowest fees, however if you aren’t […]
June 8, 2016

When should I start saving for college?

“When should I start saving for college?”, As a father of three, I’ve asked myself at what point makes the most sense for me to start saving for my kids college. With dollars flying out faster than they’re coming in, where do I find the extra income in my budget…especially when life just happens. However, my kids are rapidly approaching the college years, with my oldest just seven years away from beginning her higher education journey.  Coincidentally my kids will be in college for 12 consecutive years! So I’ve got to make a plan to cover what will be close to equivalent of a whole other mortgage payment or more. So I understand this question and the obvious answer is the sooner the better. Unfortunately, most of the time we don’t start saving when we should. The way I look at saving for college is this, get your financial house in order and then start. Before you take this task on, it’s imperative that you have a few things taken care of. What exactly do I mean when I say have your financial house in order? First have your emergency fund in place…that means 3-6 months of living expenses. You […]
March 11, 2016
child not college, first time parent

Saving for a child who may not go to college

Saving for a child who may not go to college One of your primary responsibilities when you welcome a child into the world is preparing them for adulthood. Of course you feed them, clothe them and house them. You make sure they have a good education, and you instill them with a solid sense of right and wrong. Many families, though, want to go a little further and save for the time a child enters adulthood. This savings will often be in the form of a college fund, but that’s not the only choice. There are ways to prepare for a child’s wedding, their first home, or even a mission trip overseas. The direction you take will depend on your resources, your location, and the likely end use for that money. Last week we discussed your options for college savings. This week we will look at savings for other purposes. Saving for expenses other than college The traditional vehicles for college savings generally require that the money go toward qualified college expenses with an accredited institution. But these are not the only major expenses faced by young people as they go into the world. We can’t begin to come up […]