Should You Sacrifice Retirement to Pay For College Expenses?

April 27, 2015

Should you focus your financial plans on funding your children’s college education out-of-pocket or through parent loans? This is a question on the minds of many parents that I speak with on a regular basis (and also a question that I personally have to deal with having a third grader and a kindergartener growing up too fast). The retirement vs. education question gets even more challenging when children reach high school and the time horizon to save gets shorter. Continue reading “Should You Sacrifice Retirement to Pay For College Expenses?”

Celebrate 529 Day this Thursday, 5/29

May 27, 2014

This Thursday is 529 College Savings Day, a day to raise awareness about the value of planning ahead for college expenses with 529 plans. The general theme is: Don’t panic, plan. Any amount saved in advance can lower amounts that may need to be borrowed for college, trade or technical school down the road.  Continue reading “Celebrate 529 Day this Thursday, 5/29”

Five Myths About Your 529 College Savings Plan

May 21, 2014

As the school year winds down and the invitations to high school graduations start pouring in, I can’t help but think about the day when my own little girl Rachel—who is finishing up her sophomore year—will be sending out her own invitations.  It all seems to be going by so fast but fortunately Susan and I have been preparing for that day by saving in a 529 college savings account.  For some of you moms and dads out there, you too have been using this savings vehicle to help pay for those oncoming college expenses but as Kathryn Flynn writes in a recent post called “Clearing up the confusion: Five popular 529 plan myths,” there are a number of myths floating around out there that could cause confusion when it comes time to using these accounts.  Understanding each one will help you and I when it comes time to funding our child’s higher education. Continue reading “Five Myths About Your 529 College Savings Plan”

The College Fund You Don’t Know You Have

March 14, 2013

I talk to many parents of students approaching college age who fret about having little or nothing saved for college. They know how important a college education is and want their children to be able to go to the school of their choice while graduating with as little debt as possible but at best, they only have a few thousand dollars set aside for college expenses, barely enough for one semester’s worth of meals. The rest of their money is tied up in emergency savings, retirement accounts, and a home with little or no equity. Yet, there is one potential bright spot… Continue reading “The College Fund You Don’t Know You Have”

What Tootsie Rolls and Financial Aid Have in Common

November 23, 2012

Much to the chagrin of dentists everywhere, Tootsie Roll has been a staple of the candy business for a very long time.  This article talks about the Tootsie Roll Company being a very secretive organization.  And we thought it was just the CIA that operates in relative secrecy!  Tootsie Roll doesn’t give tours, they don’t give interviews to analysts and they don’t operate with much transparency.  It’s as if they have some magical mystery formulas that they don’t want the rest of us to know.  That reminds of an email that I saw from a friend at work this week… Continue reading “What Tootsie Rolls and Financial Aid Have in Common”

How Risky are Prepaid College Plans?

July 11, 2012

With soaring tuition rates and the increasing importance of a college degree in our economy, prepaid college plans have become popular over the last two decades.  However,  declining returns from the stock market, compounded by the recent financial crisis, have caused a large gap between the funds in these state-administered programs and the escalating costs of state schools.  So what exactly are prepaid college plans and how risky are they? Continue reading “How Risky are Prepaid College Plans?”

I Don’t Want My Kids to be Crushed by Student Loans. Do You?

June 08, 2012

I read this article titled “This Bright-Eyed Young Man Was Utterly Demolished by Student Loans” about (can you guess?) a guy who has experienced significant financial, personal and emotional hardship because of the financial responsibility that he took on with significant student loan debt.  I wish this were an isolated incident, but based on some meetings I’ve had with young people recently, I’d be lying if I said this isn’t becoming increasingly more common.  Maybe not to the extreme that Nick is experiencing, but there is a growing number of young people who may not be finished with paying off student loans until they are closer to Social Security than college. Continue reading “I Don’t Want My Kids to be Crushed by Student Loans. Do You?”