The majority of our clients want to help their children go to college. Because college is so expensive today (a 4-year degree may cost $75,000 per year) and education tends to extend beyond 4 years, we ask our clients to start saving for their child’s education as early as when their child is born.
OUR NEW YORK 529 ADVISOR CAN HELP YOU FIND A FLEXIBLE 529 PLAN
Sending your children to college is a multi-faceted approach. FAFSA (Free Application for Federal Student Aid) looks at the parents’ accounts and financial assets, including your child’s assets.
The best way to help your child go to college is to save on a long-term basis, and use a 529 plan. This is a plan designed to save for future education costs. Using the 529 plan, you are eligible to get a state tax deduction. Any money taken out of 529 and used for educational purposes will be tax free. You can supplement that money with some from your savings and personal income if necessary.
Any money left in your 529 account when your child finishes college can be used for another educational endeavor, for example graduate school, or you can use it for another child’s private school or college education.
Again, we want for you to live within your means. To have money for your children to go to college, you need to have a budget and allocate correctly.