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Agenda

Agenda. Cost of College Is the Cost of College really worth it? Ways to Fund College? How Should You be Saving? Put a Plan into Place. The $380,000 Baby. +. =. $380,000. www.savingforcollege.com. Steps to Funding College. Estimate Cost of College 2. Evaluate Funding Sources

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Agenda

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  1. Agenda • Cost of College • Is the Cost of College really worth it? • Ways to Fund College? • How Should You be Saving? • Put a Plan into Place

  2. The $380,000 Baby + = $380,000 www.savingforcollege.com

  3. Steps to Funding College • Estimate Cost of College • 2. Evaluate Funding Sources • 3. Establish a College Fund

  4. The Cost of College Today *Collegeboard.org collegeboard.org

  5. Future Cost of College • 2x General Inflation • Between 6% & 9% • Newborn: Cost of $60,0000 a year!! Source: www.finaid.org

  6. Is It Really Worth It? Source: Trends.collegeboard.org & Department of Labor

  7. Scholarships • Average Size: $2,523 • Only 5.5% of students receive scholarships • Only 1% to 2% of athletes receive scholarships Source:www.finaid.org

  8. Financial Aid • Expected Family Contribution:Amount of college costs your family is expected to pay without financial aid. • 5.6% of Parents assets • 20% of a child's assets

  9. Saving For College 1. Education Funding vs. Retirement? 2. What percent of college will you fund? 3. Are your children going to attend a private or public university?

  10. Saving For College • Put a plan into place and follow it

  11. Source for Savings • Savings Account • 529 Pre-Paid Tuition Plans • 529 Savings Plans • Traditional IRA • Roth IRA • UTMA/UGMA

  12. Savings Account Pro’s • Safe • Liquid • No penalties • Little if any risk Cons • Taxed each year • Inflation

  13. Pre-Paid Tuition Plans Cons • Financial Health • Tuition Only • Out of State Schools Pro’s • No Inflation Worries

  14. 529: Savings Plans Pro’s • Flexibility • Tax Free Cons • Inflation • Possible Penalty

  15. Traditional IRA’s Cons • Must Pay Taxes • Hurt Retirement Pro’s • Retirement & Education

  16. Roth IRA’s Cons • Gains Taxable • Hurt Retirement Pro’s • Contributions taken out at any time

  17. UTMA/UGMA Cons • Child gets control Pro’s • Small tax benefits

  18. How to Choose? • What is your priority? • Is Your Retirement on track? • How sure are you these funds will be used for education?

  19. Retirement is #1 • Roth IRA • Traditional IRA

  20. Education is #1 • 529 Savings Plan • Pre-Paid Tuition

  21. The Power of a Plan • Hire a professional • One Cohesive Plan • Retirement • Life Insurance • Investments • Home and Auto

  22. Questions? Jay Langfelder 630-736-9376 Bob Kearns 847-888-3200

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