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.
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.
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.