Saving for a Child’s Education
Thanks to birthdays and holidays, our society has created countless opportunities to buy gifts for our children and grandchildren. While these gifts are fun for a day or a week, there are opportunities to give gifts that will benefit him or her for a lifetime.
More jobs than ever before require a college education, and most parents agree that this is one of their highest priorities. But while inflation has remained relatively low over the past few decades, the cost of higher education has shot up dramatically. Two-thirds of college graduates enter the workforce with an average student loan debt of $24,000.1
Saving for a child’s education can be simple and affordable using a wide range of investment tools. Contributions can be made to a single account from multiple family members, or separate accounts can be established by a parent, grandparent, or other relative. Some contributions may have tax-advantages for the person making them, so professional tax and investment advice is recommended.
529 plans get a lot of attention, and while they are a good fit for many college savers, they are far from a one-size-fits-all solution. The right savings vehicle depends on the child’s age and the donor’s situation and objectives. To learn more about to set up a college savings plan, use the calculator at right or feel free to call our office at 602-242-4000.
Financial planning is an evolving plan that changes as you grow in your career path and move on in your life stages, it is a plan that needs to be reviewed as the circumstances changes for example getting married, buying a house and raising a family.
As your life goals and financial status changes you will need to review your financial plans to see if you will achieve your financial goals within the given time line. Give Johnson Financial Advisors a call and we would love to help you 602-242-4000.