College is tremendously expensive, and there is no end in sight to increases. Smart parents plan for this expense early on, often with a financial advisor. There are several factors involved.
When selecting your financial advisor, be sure to be aware of what the fee structure is. Some charge a percentage (often 1%) of assets. This can add up over time. If you consider yourself savvy, consider selecting a “for fee” financial planner. These professionals bill you for their consultations, like seeing a doctor or any other professional. Some say it’s a better model because there isn’t any pressure to sell any financial products.
When it comes to saving for education, the big thing you need to know is 529. It’s a government plan that allows tax-free investment growth and withdrawals. It can be used to pay for tuition, books, housing, and other qualified costs. Sometimes there are tax benefits as well. Funds can be guided to other children, so don’t worry about over contributing.
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