 |
| Sand Castles at Pt. Pleasant Beach, NJ |
|
|
Objective: Thinking about the costs of education is often a daunting task for people. However, without good planning in this area, people can find themselves faced with difficult decisions between helping their children and insuring their own retirement objectives. Through the use of planning, our goal is to increase the odds that you will be able to accomplish all of your desires and objectives.
Process: After you establish your education funding goals and objectives, we will look at the best methods for achieving these goals and objectives. We will explain the basic concepts involved and the different financial vehicles available to achieve your education objectives. For example, we will discuss the advantages and disadvantages of tax deferred plans such as Section 529 Plans, Education IRAs and Series EE and I Bonds. Where appropriate we will also explore more sophisticated strategies such as trusts, using retirement accounts and other assets or gifting assets directly to the future college student to be used directly by him or her when the time comes. Each of these methods involves different risks and benefits, from tax consequences to control of asset issues. Only after you understand each of the various vehicles available can you make an informed choice as to which alternative best suits your unique needs.
Again, the cash flow will be an integral part of this process. Through our use of the cash flow, we can determine the amount and source of funds available to fund the various plans and vehicles. We will look to see exactly how each of these plans affects your taxes and your ability to achieve your other dreams and desires.
Importance: Funding for education costs can be one of the most important and expensive things a family plans for today. History suggests that the tuition inflation rate will continue to outstrip the average inflation rate over time. To deal with these tremendous costs, you need planning and experienced advice. Planning is needed due to the sheer size of the financial burden. Experienced advice is important because it permits flexibility and choice between the many different techniques and products being sold. Different funding methods work for different people. No one technique or plan is right for everyone.
|