Understanding and Planning for Your Child's College Education It's Never Too Early 10/7/2014

There Is No Financial Aid for Retirement Take Care of Yourself Because… 10/7/2014

Why Save For College? 10/7/2014

 Tuition costs in the last 10 years have more than doubled (Annual increase avg >7%)  Costs for room, board, fees, books and transportation can be as much as tuition College Costs Continue to Rise 10/7/2014

Student Debt Is Rising 10/7/2014

Kids Grow (too) Fast 10/7/2014

And Sometimes they Multiply 10/7/2014

They start heading off to school 10/7/2014

And multiply more… 10/7/2014

Your Goal – Paying for College (or some of it) 10/7/2014

Develop a Plan 10/7/2014

 Estimated cost for college (public vs. private)  Number of years until child is college age  Amount household income available NOW for college  Amount of household income available during college years  Student contribution/ working before & during college  Eligibility for loans/Willingness for debt Information Needed 10/7/2014

 529 College Savings Plans  WA State GET 529 Pre-paid Tuition  Coverdell Education Savings Account (Education IRA)  Custodial Account (UGMA/UTMA) Savings Options 10/7/2014

529 Savings Plan WA GET Plan(Prepaid) Education IRA Custodail (UGMA/UTMA) Tax-Free Growth? Yes No Who Can Participate Student or Other family mbr Student or other WA family mbr Student or Other with MAGI< $220,000 Everyone Contribution Limit Varies, up to ~$400, units (~$86,000) $2,000 annuallyUnlimited Withdrawals Used for? Higher Education Expenses Higher Education expenses Kindergarten - college. Any Reason Beneficiary Change Allowed? YesYes. Yes, if under 30 yrs. No. Who Controls Account Account Owner Depends on how account is set up Custodian until child reaches age 18. Investment Guaranteed? NoYes, by WA StateNo 10/7/2014

 Cash-flow  Relatives contributing to college fund  Student Loans  Grants & Scholarships  Home equity line of credit  Community College first  GI Benefits  Withdraw from Roth or Traditional IRA Other Ways to Finance College 10/7/2014

 FAFSA4caster  College Savings Plan Network  US Dept. of Education Pub – My Future, My Way  SavingforCollege.com  WA Guaranteed Education Tuition (GET) Tools & Resources 10/7/2014

 US Dept of Education tool for early college planning  Allows students and families to get an early start on the financial aid process  EFC – Expected Family Contribution  Provides an initial estimate of a student’s financial aid eligibility FAFSA4Caster Free Application for Federal Student Aid 10/7/2014

 Provides information about saving for college and 529 plans, including:  Why saving for college is important  What is a 529 plan  A college cost calculator  Links to state 529 plans  A 529 plan comparison tool College Savings Plan Network 10/7/2014

 Workbook for students in middle & junior high school  Provides information about how to go to college and how to pay for college  Includes charts, checklists, and other activities  PDF available at My Future, My Way 10/7/2014

 Commercially sponsored site  “5-day crash course” on College Savings  College Calculators and tools  529 Savings Plan comparison tool  “Premium Content” service is available SavingforCollege.com 10/7/2014

 Unique to WA residents  Provides all the details on the GET program  Contributions can be lump sum, installments, or both  Detailed FAQ’s on how to sign up, contribute and redeem tuition credits  WA Guaranteed Education Tuition 10/7/2014

Which Cap Will Be Yours? 10/7/2014

For Questions and more Information please contact me: David Almond, dba Almond Financial Planning NW Questions? 10/7/2014