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Archive for College Savings

May 29 is National 529 Plan Day!

Posted by Frank McKinley on
 May 22, 2023

Save for college with a tax-deffered 529 Savings PlanDo you know someone saving for a child’s college?  Did you know they could invest in a TAX DEFERRED account, and you could even help by adding to their account or open an account for them!

Some also have a feature which enables you to contribute to the account for birthdays, holidays, or graduation through their high school years.

And there are various additional benefits like professionally managed age-based portfolios in conservative, medium or growth allocations and scholarship aid of up to $3,000 based on total contribution and time in the portfolio.

NEW benefits– you can take up to $10,000 to pay for private school (K-12); you can take up to $10,000 (one time) to re-pay student loans.

If you’re concerned the student might ‘take the money & run’- fear not as the account is owned by the adult opening it (and their successor owner) not the student who is simply the beneficiary.

And if the student doesn’t need or use the money- what then?  Two options: Take it out on the student’s social security number for a wedding or home purchase and let them pay the tax on the deferrals, or let it continue to grow for another family member like THEIR child.

For information about a 529 Plan or how to contribute to a new or  existing please contact me at:  973-515-5184 or FranklyFinancial@NationwidePlanning.com

Categories : 529 Savings Plans, College Savings, Financial Services

Is It Time to Rethink College?

Posted by Frank McKinley on
 February 10, 2022
2020-03 Frank McKinley Newsletter
Categories : 529 Savings Plans, College Savings, Newsletters

An Investment Plan for College

Posted by Frank McKinley on
 February 3, 2022
2022-02-McKinley-Newsletter
Categories : 529 Savings Plans, College Savings, financial planning, Financial Services, Newsletters
Tags : college funding

Stock Investing Mistakes to Avoid

Posted by Frank McKinley on
 December 1, 2021
202112-FrankMcKinleyNewsletter

 

 

Categories : College Savings, financial planning, Financial Services, Investing, Stocks

Want to help YOUR KIDS – Consider a 529 College Plan

Posted by Frank McKinley on
 May 26, 2021

Tax-FREE distribution; Potential financial aid!

What’s not to like?

May 29 (5-29) is National College Fund Day!

Did you know you can help fund you child’s or grandchild’s college education on a tax-FREE basis* AND potentially receive financial aid (for NJ residents see attachment)?

Why use a 529 College Plan?

  • Easy to establish
  • Professional management
  • Flexible contributions
  • Control over withdrawals

*Tax benefits** – Growth is tax-deferred and if used for secondary education is free from Federal income tax and many State’s Income tax.

Please call me to discuss the benefits of helping fund a 529 plan for your child, grandchild, or a friend’s child. There are also estate planning benefits which may help you and your grandchild. Plans can be funded with a single check, a systematic investment, or an accelerated program to maximize estate planning. And the account owner maintains control over the withdrawals in case your needs ever change.

And Financial Aid is available for NJ residents

based on how much you invest, and for how long.

**Please Click here for More Information

If you or anyone you know has questions about this, please call me 973-515-5184!

Categories : 529 Savings Plans, College Savings, Financial Services

How Much Do You Need to Save for College?

Posted by Frank McKinley on
 June 15, 2020

The ever-rising cost of college is common knowledge. Depending on the school a student chooses, the cost of tuition, room, and board for an undergraduate
degree can easily exceed six figures. With costs so high, many parents are simply overwhelmed. Saving enough to cover all of a child’s college education expenses may seem like an impossible goal. Many parents don’t get started, or if they do save, they don’t save enough.

If you want to help your children pay for their college costs, you need a clear savings strategy. Below are some simple guidelines for determining how much you really need to save.

Estimate How Much College Will Really CostHow much will you need to save for college?

According to data from the College Board, a year of tuition, room and board in the 2018-19 academic year costs $21,270 at a public institution and $48,510 at a private nonprofit institution. Assuming future increases of 3% annually, that means in 18 years, a year of college will cost more than $36,000 at a public
school and roughly $82,000 at a private school.

Those estimates are staggering. Of course, it’s possible college costs will level off or increases won’t be quite so steep. But in any case, the young children of today will likely face much higher college costs than students do today.

Why does all this matter? Because you need to get a sense of what it might actually cost your child to attend college. If you have a baby who was born this year and hope to send him/her to a private four-year college, you’d need to save about $328,000 to cover all the costs.

Decide How Much You Want to Save

Once you have an idea of how much your children’s college might cost, you can set realistic savings targets.

Say you want to be able to cover 80% of the cost at a four-year, private college for your child, with the expectation that your child will either obtain grants or scholarships or take out loans to pay the remaining portion. That means a savings goal of $262,000 at the end of 18 years. To hit that target, you’d need to set aside about $728 a month, assuming annual returns of 6%. If you want to cover 80% of the costs of a four-year education at a public college (estimated
at $144,000), you’d need to save $115,000. To reach that goal, you’d need to save about $372 a month, assuming annual returns of 6%.

If your initial savings estimates are high, consider tweaking your goals. Meeting 80% of your child’s estimated college costs may be unreachable, but 70% may be a more achievable goal.

Also, consider other sources you can tap to boost savings. Grandparents may be willing to make contributions. Monetary gifts your child receives for birthdays and other milestones can be added to a college fund. Finally, don’t count out the possibility of financial aid.

Create a Plan

The estimates above are just that — estimates. Unfortunately, many parents have little idea how to get started saving.

Sticking funds in a low-interest savings account reduces risk, but means you’ll have to save more. A 529 college savings plan, which offers tax advantages and access to investments, could be a better way to reach your goals.

To create your own college savings plan, you’ll need to think carefully about your family and your situation.

Please call me at 973-515-5184 if you’d like to
discuss this topic in more detail.

Representatives are registered through, and securities are sold through Nationwide Planning Associates, Inc., Member FINRA/SIPC, located at 115 West Century Road, Suite 360, Paramus, NJ 07652. Investment advisory services are offered through NPA Asset Management, LLC. Insurance sold through licensed NPA Insurance Agency, Inc. agents. Frank is registered in NJ, NY, PA, FL, CT, CO, NC, OH and RI. He is also licensed for life and health insurance in NJ, NY, FL, OH and RI. The presence of this web site on the Internet shall in no direct or indirect way be construed or interpreted as a solicitation to sell advisory services to residents of any state other than those listed above and shall not be deemed to be a solicitation of advisory clients living in any state other than those listed above. Nationwide Planning Associates, Inc. and Frankly Financial are non-affiliated entities.
Copyright © 2020. Some articles in this newsletter were prepared by Integrated Concepts, a separate, non-affiliated business entity. This newsletter intends to offer factual and up-to-date information on the subjects discussed but should not be regarded as a complete analysis of these subjects. Professional advisers should be consulted before implementing any options presented. No party assumes liability for any loss or damage resulting from errors or omissions or reliance on or use of this material.

Categories : Blog, College Savings, Financial Services
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