The price of college is skyrocketing! Loan availability is high, demand is high, and competition is extremely high to retain these high paying, high maintenance student lifestyles. There are so many amenities at universities today, and you and your loans are paying for them. Unlike every other industry, colleges have not passed on savings captured by technology advances to their students. If you have a future student, YOU MUST START PLANNING NOW!
The most popular and most efficient way to save for college is with a 529 College savings plan. This allows you to save money in an education fund – tax deferred. While there are stipulations as to how the money is spent, many states will give you a tax credit for investing in a 529. Indiana, for instance, offers a 20% tax credit on your deposits up to $5,000. That is potential for a $1000 credit on your state taxes…an immediate 20% return.
Regardless of how you save, it’s crucial to start it early. College inflation costs need to be combatted with investing over long periods of time. The deadline for a 529 tax credit is December 31st. If you need help with this goal, contact our firm and we can guide you to the right plan.