As college students end their winter break and head back for spring semester, I thought it would be a good time to review some college planning basics.
I tell clients there’s no “magic bullet” for accomplishing the college savings goal. Paying for college for your children usually incorporates several strategies including:
- Saving money in a college fund
- Scholarships and Grants
- Loans by parents and/or students
- Re-directing current income from parents or students during the college years.
In most cases, the best vehicle to save for college is 529 savings accounts. 529 refers to the section of the Internal Revenue Service code which allows for tax preferential treatment of college savings accounts. 529 plans are typically owned by the parent with the child as beneficiary....