GOLDEN VALLEY, Minn. - One of the biggest costs families face is a college education...even with student loans and grants tuition can often overwhelm finances. And for good reason, the average in state costs is currently between 15 and 18-thousand dollars a year.
Financial Advisor and host of Your Money, Bruce Helmer of Twin Cities based Wealth Enhancement Group offered some suggestions on how families can plan ahead.
According to Helmer, saving and investing for college is just like any other investment activity: Time is your greatest ally. The sooner you start, the less you have to invest.
One savings vehicle is a 529 plan account which grows tax-deferred and withdrawals from the plan for qualified educational expenses are exempt from federal income tax. There are no income limits.
Here are some other saving tips:
Step 1: Estimate what college will cost when your child is ready to go
Step 2: Compare available cash flow with the savings required
Step 3: Determine and be realistic about what financial aid may be available
Step 4: Decide how to invest the money
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