For the Defense - Volume 3, Issue 1 - 2018 - 40
time. As an example, if you have ten years to save
and can put aside $152 per month growing at 6%,
you would have $25,000 at the end of the period.
By comparison, if you borrowed $25,000 and paid
it back over ten years at the same 6% interest rate,
you would need to repay $278 per month - that's a
difference of over $15,000 in payments!
And if time is not on your side? It is still
important you do as much as possible to help
diffuse the costs. As previously mentioned, save
through college. It's amazing how much your
water bill and other expenses often reduce
when children leave the nest - leaving you with
discretionary funds to continue saving.
Ways You Can Save
Once you have a timeline and a savings goal,
it is important to start stocking away money to
close the gap. There are myriad ways to save for
college. One of the most popular is the savings
variety 529 Plan. The 529 Plan is an investment
option offered by most states. Many mutual fund
companies provide tax-deferred growth, tax-free
40
For The Defense
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Vol. 3, Issue 1
deductions, and even state tax deductions or tax
credits, depending on where you live.
Many families also consider pre-paid tuition
529 Plans, which include Coverdell Educational
Savings Accounts, Custodial Accounts called
Uniform Gifts/Transfers to Minors (UGMA/UTMA),
Cash Value Life Insurance strategies, Real Estate,
Educational Savings Bonds, and even Roth IRAs.
Of course, it is important to understand the
advantages and disadvantages of each plan. For
example, the parent who sent a child to school in
2009 after the S&P 500 dropped 37% in the prior
year might have preferred a savings strategy that
involved guarantees. This strategy, in hindsight,
would have provided a much-needed safety net.
Your Unique Savings Plan
There is not one right answer and everyone's
needs are different. Here are strategies and
products that you should consider when
determining what is most appropriate for your
family.
Table of Contents for the Digital Edition of For the Defense - Volume 3, Issue 1 - 2018
Contents
For the Defense - Volume 3, Issue 1 - 2018 - 1
For the Defense - Volume 3, Issue 1 - 2018 - 2
For the Defense - Volume 3, Issue 1 - 2018 - Contents
For the Defense - Volume 3, Issue 1 - 2018 - 4
For the Defense - Volume 3, Issue 1 - 2018 - 5
For the Defense - Volume 3, Issue 1 - 2018 - 6
For the Defense - Volume 3, Issue 1 - 2018 - 7
For the Defense - Volume 3, Issue 1 - 2018 - 8
For the Defense - Volume 3, Issue 1 - 2018 - 9
For the Defense - Volume 3, Issue 1 - 2018 - 10
For the Defense - Volume 3, Issue 1 - 2018 - 11
For the Defense - Volume 3, Issue 1 - 2018 - 12
For the Defense - Volume 3, Issue 1 - 2018 - 13
For the Defense - Volume 3, Issue 1 - 2018 - 14
For the Defense - Volume 3, Issue 1 - 2018 - 15
For the Defense - Volume 3, Issue 1 - 2018 - 16
For the Defense - Volume 3, Issue 1 - 2018 - 17
For the Defense - Volume 3, Issue 1 - 2018 - 18
For the Defense - Volume 3, Issue 1 - 2018 - 19
For the Defense - Volume 3, Issue 1 - 2018 - 20
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For the Defense - Volume 3, Issue 1 - 2018 - 22
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For the Defense - Volume 3, Issue 1 - 2018 - 40
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For the Defense - Volume 3, Issue 1 - 2018 - 56
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