Should your child or children go to college? If they do, which college should they attend? How much will that cost? Will they get a quality education? Will they go to graduate school? Will they attend an in-state or out-of-state school?
Do any of these questions sound familiar? If so, have you thought about them enough to find real answers or solutions? Or has the thought of all this caused you to put it off and simply “hope” that someday, some way, it will all work out? Unfortunately, it is highly unlikely to work itself out. These are tough questions that require real answers and solutions.
You may feel the crunch of burdening these questions on your own. Should you choose between a regular savings option like a Money Market and certificate of deposit? Or between an investment in stock or real estate markets or even a government sponsored plan such as a 529 Plan? Are there any other options?
The Reality:
First, it’s important to discover what your particular situation requires. For example, if you have a family or four children ages four, six, eight, and ten you will need to have an approximate current college savings of $358,419, earning 5% after taxes and fees (a true net 5% return). That would include a four year education based on the current average annual cost of college; $25,000 a year (private colleges currently average at $45,000 a year). The $358,419 also factors in a 4% inflationary cost increase.
If you don’t have that much currently saved, you can start saving today at an annual amount of $30,277.55 remembering that you will need to earn 5% after taxes and fees to meet your goal.
The Solution:
There is tremendous value in higher education. Education generates increased personal success as well as a more successful world, economy, and society. I once heard the following statement, “You can only get to where you are coming from.” If you remain in uncertainty you are destined to end up in an uncertain world.
It’s time to honestly and accurately look at this situation and see what possibilities exist to resolve it. Could the traditional savings vehicles such as money markets, certificates of deposits, stocks, mutual funds, bonds, or 529 Plans be the answer? It’s a possibility. Are there other possibilities? Absolutely.
One example is known as the Infinite Banking Concept. This is a proven economic strategy that has been around for over 100 years, and is based on the principles of Austrian Economics. It has been used by hundreds of thousands of individuals, business owners, and banks and has been proven through increasing and decreasing economic markets. It can work for you too! The Infinite Banking Concept when used in conjunction with college funding can be a powerful way to save for your children’s college education and for your retirement at the same time.
Let one of us at Paradigm Life show you how.
FAQ
Q: Can you outline some key strategies for funding a child’s college education?
A: These strategies may include utilizing specific financial instruments, exploring college savings plans, and considering tax-efficient options to save for a child’s education.
Q: Why should parents and grandparents consider these strategies for funding a child’s college education?
A: Parents and grandparents should consider these strategies as they can help alleviate the financial burden associated with higher education, ensuring that children have the financial means to pursue their academic goals.
