Families today feel enormous pressure to send their children to college.
- Survive in a difficult employment environment
- Most of the high paying jobs available seek candidates that possess a college degree
- Education is the key to success in many areas of our lives including navigating this complex world in which we live
- Education is important for those who want to contribute to their families, communities, and country, let alone their employer
It is no wonder why education is important.
According to Forbes, “parents spent 16% more on college this year”. Investing your hard earned dollars in the most efficient methods can help to prepare for these escalating expenses. Positioning your invested funds for the greatest tax efficiency is also an important consideration. It is also very important to pick investment vehicles that will allow you to achieve the greatest education aid possible. Knowing the ins and outs of this can achieve enormous savings and benefits for families who are facing huge bills to put your children through college.
Options to Consider
A couple of options that a lot of people consider for investing in education are 529 plans or UGMA (Uniformed Gift to Minors Act) accounts. Although there are some nice benefits to these types of accounts, there are hidden “gotchas”. For instance, most people do not consider how these effect student aid. Structuring your college funding in the wrong way could cost families tens of thousands of dollars in potential aid. This is also true for families with high incomes.
Why is education important? For all of the above reasons and more! So investing in education for your children is the key to success in the ever competitive employment world. In addition, it is incredibly important to position those investments in the most tax efficient ways as well as structuring them to obtain the greatest possible financial aid.
For more information on college planning options see Firedream Financial Group.