The largest purchase many families will make is their children’s higher education. While the return on this investment in your children may pay big future dividends, the formidable cost of higher education demands thorough education planning and even creativity to meet this goal.
The cost of higher education has created a dilemma for parents and a crushing debt load for many children after graduation. However, parents cannot finance their retirement lifestyle needs, so student education loans and work study programs may be the best of your least desirable planning options. Developing an effective college debt management program for parents and children is an essential part of comprehensive education planning.
Tax-advantaged higher education saving tools like Section 529 and Coverdell savings accounts can be helpful, but siphoning savings intended for your retirement into college saving accounts just creates a new financial problem.
Once your child approaches their college years, advanced planning can maximize financial aid—either needs-based or in the form of tuition grants from private colleges/universities that compete fiercely to land the best students.
Wealthcare planning helps you take a realistic look at your financial priorities and calculates how much can you afford to contribute to your children’s education without sacrificing your other goals. As higher education planning specialists, we can help you create “tax scholarships” by implementing sophisticated tax planning strategies, especially for more affluent families who may not qualify for need-based financial aid.
