College Planning

August for me is “Back to School” mode.  Kids from elementary school age through college begin preparations for the new school year.  When I was in school, I loved this time of year.  Education is a growing expense in this country, particularly on the collegiate level.  Knowing which types of education funding accounts are available and how they work is an important distinction.  In the next couple weeks we will explore the following different education funding tools:

• Coverdell Education Savings Accounts
• 529 plans

 While college planning is important, it should not jeopardize your own retirement planning.  Some families put a higher emphasis on saving for their children’s college and while that is a noble financial goal, it cannot come at the expense of your own retirement.  A college student can loan themselves through college – you cannot loan yourself through retirement.