How to avoid the student loan nightmare

How will your kids ever afford to go to college? The cost is almost insane now and many kids feel that student loans is the only option.

But that’s just not true.

In fact, you can help your kids get ready for college YEARS before they are old enough. By investing into a college-savings account, or a 529 plan, you can help you child save for college and avoid the life altering burden of student loan debt!

We started saving when our first daughter was 6 months old. And although we are only contributing $250/month to her fund, doing that every single month for the next 17+ years will REALLY pay off toward helping her attend college without costing an arm and a leg.

A 529 plan allows you to invest in good growth stock mutual funds and receive a tax benefit for contributions. I highly recommend investors work with a licensed professional to select the accounts that work best.

You want to AVOID a state plan as it will automatically choose the investments and automatically change them as the child gets older. You WANT to manage your fund through an independent plan provider (We use Edward Jones).

When you open an account, your advisor will help you estimate the cost of college when your child is ready. Then they will estimate how much you need to contribute to fully fund the tuition. We elected to not contribute the maximum because we want our daughter to work for scholarships, as well as get a job if necessary, to pay for the balance.

Even if college is coming sooner than later for your kids, a 529 savings plan can still be beneficial. Limited time just means higher contribution will be necessary to achieve the tax benefits and the growth necessary to be worthwhile.

Help your child avoid the nightmare of student loan debt and use a 529 savings plan to secure their educational, and financial, future.

If you’re need help find the money to contribute, schedule a free consultation and I’ll guide you to a stronger budgeting process.