We are advocates of a plan that is also funded with after-tax dollars, and like the 529 plan, is accessible tax-free. It doesn’t generate a state tax credit, but it also eliminates any FAFSA penalty, and those tend to cancel each other out.
Where our plans really shine is that they are not exposed to market risk, and they can be used for any purpose – college, starting a business, travelling the world, or starting a killer long-term tax-free retirement account.
The S&P 500 is down 8% this year already — including another 2.2% Friday — in what’s been the worst start to a year ever. Since the market peak on May 21, 2015, the market has declined 11.7%.”
Then, think about the really big things that can happen to you. For example, what if I… 1) Die too soon, 2) Live too long, or 3) get sick?
A college is a business. You are a potential customer. You represent 4.5 years of tuition, room, board, books, and an economic participant in the college community. Even at a modestly priced school, chances are you represent at $150,000 “client.”
How many Quarter Million Dollar mistakes can you make in a lifetime without it seriously affecting you?
The good news is that whether the Junior at your house is 8 or 18, it’s not too late
