There are the “tried and true” conventional, traditional means of saving money for college. Then, there is the correct method of saving.
Tried and true include shoe-boxes, savings accounts, CDs and such, including 529 Plans. Wall Street and financial advisors want you to use 529 Plans.
After all, 529 Plans have the greatest odds of having the money you need when you need it, or so they say and so you hope. Yet, these plans lost $40 Billion or more during the recent market pandemic-related market downturn.
Will the money you need really be there when you need it??
Great question! Nobody knows. There are no guarantees when money is tied to the market.
Sure, the money directed to 529 Plans are tax-advantaged, utilizing after-tax dollars and any growth thereon for educational expenses, provided they are qualified educational expenses. If used in any other way, earnings are taxed and penalized.
Moreover, the value of such plans are assessed against you and reduce the amount of aid for which you may qualify. Moreover, if you have more than one such plan, all are aggregated and assessed as a single amount.
Why not use a financial vehicle that shelters savings from the college financial aid calculations? Why not use a vehicle that guarantees growth, even during market downturns? Why not use a vehicle that allows you to use the savings for any purpose whatsoever, without limitation?
Do you know what financial vehicle that might be?
Of course you don’t! Wall Street and financial advisors don’t want you to know, as they derive no benefit from its use.
The Money Architects at Vivensure® know what financial vehicle should be used for families embarking on their college planning campaign.
Let us assist you with yours.