Posted On: March 22, 2017
How to Start Saving for College Today
With college costs increasing each year, it's never too early to begin saving for your child's education! Beginning early is the best way to avoid surprises and debt, and there are many secure plans that promote growth against inflation. With this guide, you'll be able to save for college without stress.
Starting Saving Early
While it's never too late to start saving, it's best if you can start early to allow your money to grow over time. Ideally, you'll want to begin saving right when your child is born. This may not always be possible, but the benefits of starting early include compounded interest, more wiggle room during tough months, and a potential surplus once your child completes college.
While everyone has a different budget, even a small monthly savings is better than nothing. Find a monthly limit that works for you, and try to stick with it over the years for the best results!
529 College Plans
Most states offer a 529 college plan that allows you to invest in a fixed-rate system or with a customized approach. The best benefit of the 529 plan is that contributions are taxed but your earnings are not. You can choose a prepaid plan that allows you to purchase college credits at the current market rate to beat inflation in the future. The second option is the savings plan which is at the market's mercy. Both plans offer their own benefits depending on your risk level and budget, but they remain one of the most stable ways to save today.
A Roth IRA is very similar to the 529 plan, but there are a few key distinctions. There is an income limit that you can't exceed and you can only contribute up to a certain amount each year. However, it's slightly more flexible since you can take out your money tax-free should your child not go to college.
Symmetry's SmartStart program combines life insurance with a savings initiative to jumpstart your child's education funds . The flexible plans are based around your budget and goals, and you can begin paying in monthly or quarterly installments. Since the funds are tied to the S&P 500 index, you can expect great gains without a market risk.
Connect with a Financial Planner
Everyone has their own risk levels and goals, and it's important to talk with a financial planner before signing up for a new life insurance plan. At Symmetry, you have access to a wide range of personalized products and expert assistance. Begin searching for the best plan to ensure your child has an education fund – contact an agent at Symmetry Financial Group today.
Start looking at new plans today to ensure the best college education for your child!