From game-day parties and lecture hall classes to life lessons learned, there are many reasons to be passionate about college. But finding and funding the right university can be difficult. It requires proper planning and preparation to find the perfect fit for your student.
At least 91 percent of high net worth individuals with children under 18 say funding college is a major goal, according to a survey by The Phoenix Company Inc., a life insurance and annuity company. Yet, only 23 percent say they’ve achieved their college financing objectives.
While planning ahead is a crucial component of saving for college, “you don’t need to liquidate your assets to save for college,” says Sally Mullen, Chief Fiduciary Officer of U.S. Bank Wealth Management.
“There are many savings vehicles that allow contributions.”
One gentleman in Iowa is taking advantage of 529 college savings plans for each of his 19 grandchildren, says Iowa State Treasurer Michael Fitzgerald, Chairman of the College Savings Plans Network (CSPN), a nonprofit association for administrators of state-sponsored college savings plans. Every December, he puts $2,975 — the maximum tax-deductible contribution under Iowa’s plan — in each of the 19 accounts. He’s using 529 savings plans that offer a variety of age-based asset allocation, a portfolio of stock or bond options that become more fiscally conservative as the beneficiary nears college age. “This is how he gives his grandkids their inheritance, so they can have a college education,” Fitzgerald says. “You hear stories like this all across the country. It’s something grandparents can feel really good about.”
“You don’t need to liquidate your assets to save for college. There are many savings vehicles that allow contributions.”
— Sally Mullen, Chief Fiduciary Officer of U.S. Bank Wealth Management