It is well documented that the cost of college and post-graduate education is rising much faster than the rate of inflation, and more importantly, much faster than the rise in salaries for families who wish to help their children address college costs In fact, after buying a home, the cost of higher education for children can represent one of the largest financial milestones in a family’s financial life.
There are many tools and resources to help address the rising costs for higher education. Proper college planning requires much more than simply contributing to a 529 education fund. Proper college planning is both a science and an art, balancing the art of helping your child find and get accepted into the right schools, with the science of funding his/her college costs without sacrificing other key elements of your overall financial plan. At Reviresco Wealth Advisory, we work closely with experts in the area of college planning, and they make up a very important part of our “extended services team.”
Here are a few important points to consider: There are approximately 50 million students k-12 in the US today – competition for limited college acceptance is stiff. The average college tuition has increased 490% since 1980. The national average student to counsellor ratio is approximately 450:1. The national average for what families have saved for college is only $10,200. The table below reflects annual average costs for 2014 & 2015.
When the time is right, we work closely with our clients and our associated college planners to help in these three ways:
- Help the kids find a good academic, social and financial fit for college, and help position them to get accepted.
- Help the family efficiently fund college costs by properly positioning assets and finding advantageous ways to address tuition.
- Help parents fund college without sacrificing their retirement
For more information on how we can help with college planning strategies, please contact us contact us today.