2. 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

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

4. Steps to Funding College 1.Estimate Cost of College 2. Evaluate Funding Sources 3. Establish a College Fund

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

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

7. Is It Really Worth It? Education Level:Before-Tax Earnings Professional Degree $ 100,000 Doctoral Degree $ 91,900 Master's Degree $ 67,300 Bachelor's Degree $ 55,700 Associate Degree $ 42,000 Some College, No Degree $ 39,700 High School Graduate $ 33,800 Not a High School Graduate $ 24,300 Source: Trends.collegeboard.org & Department of Labor

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

9. 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

10. 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? Saving For College

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

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

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

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

15. 529: Savings Plans Cons  Inflation  Possible Penalty Pro’s Flexibility Tax Free

16. Traditional IRA’s Pro’s Retirement & Education Cons  Must Pay Taxes  Hurt Retirement

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

18. UTMA/UGMA Pro’s Small tax benefits Cons  Child gets control

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

20. Roth IRA Traditional IRA Retirement is #1

21. 529 Savings Plan Pre-Paid Tuition Education is #1

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

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