So you’ve done a great job – or perhaps a reasonably good job – at putting money aside to fund your college student’s education. If 529 plans are a tool you use, here are some ideas for smart withdrawal strategies to help you make the most of the money set aside to pay for college.
Selecting and owning individual stocks has lost favor as a way to invest in the best companies in the world. It isn’t trendy and may seem out of date. However, this approach offers benefits that wealthy investors and institutions have enjoyed for decades.
For many families, paying for college is an enormous responsibility and the costs are daunting. Tuition has risen at an average of 5% per year over the past decade, significantly outpacing the general rate of inflation. Total outlays for a four-year private college education can exceed $200,000. Using a Qualified Tuition Program (529 account) is an efficient way to save money for future school-related expenses.
The Bank of Mom and Dad is a prominent lender/gifter of funds to children for buying a home. Financial headwinds are strong for millennials and it is expected more than a quarter of first-time home buyers will get financial assistance from relatives.
Once a child turns 18, parent access to medical information is not guaranteed. By putting the right legal documents in place before heading off to school, college-age children can get immediate input and help from parents if they have a health issue.
July ended a news-rich month with favorable returns for global equities and the higher risk sectors of the fixed income market. Support came from strong second-quarter earnings reports and a jump in GDP to its best level in four years. Tariffs remained a focus but the tone was light and improved with a new agreement with Europe and no escalation with China. Late in the month, the news cycle flipped to earning misses from highly owned Facebook, Twitter, and Netflix.