Successful Education Planning Strategies

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Educational seminar presentation on college planning tips.

Educational seminar presentation on college planning tips.

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  • 1. Successful Education Planning Strategies Featuring Michael J. Youmans, Ph.D., Founder of College Prep Express & Daniel Friedman , CEO of Wealth Management Group of NA, LLC
  • 2. What You’ll Learn Today
    • The reality of college costs
    • Ideas for college funding
    • How to avoid the grandparent trap
    • We are here to help
  • 3. Figuring Out Your College Saving Needs
    • National averages:
      • $18,000 for a public university (in-state)
      • $35,000 for a private university
    • Locally:
      • $25,000 at UCONN (in-state)
      • $41,000 at UCONN (out-of-state)
      • $21,000 at CCSU (in-state)
      • $55,000 at Yale
    *Note – All statistics are from the U.S. Dept. of Education, Institute of Education Sciences, 2011
  • 4. Saving for College… Is it a Top Priority?
    • New research: College Debt Crunch
      • When lack of college savings meets rising college costs
    • A multi-generational issue
      • College debt’s long-term impact
      • Implications of college funding and plans for Restylement
    • The critical role of sound financial planning
  • 5. How Will You Pay For College Costs?
    • Current Cash Flow
    • Financial Aid
    • Student Loans
    • Scholarships
    • 529’s
    • Other investments
  • 6. Getting Real About Financial Aid Source: Alliance Bernstein, College Savings Crunch Survey (2006) Parents overestimate scholarship and grant money children will receive Scholarships and grant money are less available for the average family compared to 10 years ago What Financial Aid Administrators Say: Even parents who have the means to pay for college are looking for ways to reduce or avoid costs My children are likely to have unique or special talents that will enable them to receive scholarships What Parents Believe: 72% 92% 75% 66%
  • 7. Student Loan Debt
    • Boomerang Kids
      • Debt forces 32% of college grads to move back in with their parents*
      • Parents may have to help subsidize post grad years
    • Restylement Issues for Parents & Kids
      • 55% of graduates report debt hinders their ability to save for restylement*
      • Parents may be forced to defer their own restylement to pay for kids
    *Source: AllianceBernstein College Savings Crunch Survey (2006)
  • 8. 529’s? What are they? Section 529’s are named for a section of the IRS code. They are sponsors of state governments.
  • 9. Pros & Cons of 529’s
    • Limited investment choices and rebalancing
    • No guarantee that the investments will keep pace with college inflation
    • Penalties and taxes… If money is not used for college expenses
    • Can hurt financial aid
    • Federal tax
    • Possible state deduction
    • Donor retains control
    • Low maintenance
    • Simplified tax reports
    • Flexible
    • Substantial deposits allowed
    Cons Pros
  • 10. 529’s, cont.
    • Most states offer their own 529 programs, which may provide advantages and benefits exclusively for their residents and taxpayers.
    • *An investor should carefully consider the investment objectives, risks, charges and expenses associated with 529 plans before investing. This information is available in the issuer’s official statement, which can be obtained from your financial professional. Read the official statement carefully before investing.
  • 11. The Grandparent Trap
    • Grandparents wanting to help out with grandkids’ college education without going through their children (kids’ parents)
    • Grandparents want to control and change their contribution (benefits of 529’s)
    • Kids do not have control of the money
  • 12. What Can You Do To Prepare?
    • Identify your college savings needs
    • Set your savings goal
    • Examine your savings options
    • Create a sound investment strategy
    • Review your overall wealth management circumstance
  • 13. Remember!
    • College is not an unexpected expense
    • Put a wise plan in place that takes into account your other financial goals
    • Get smart about saving for college now to avoid headaches (and heartache) later
    • Start planning today for tomorrow’s opportunities!
  • 14. Thank You!
    • Wealth Management Group of NA, LLC
    • 231 Farmington Avenue, Farmington, CT
    • (800) 226-8411 ~ (860) 679-5255
    • [email_address]
    Securities and advisory services offered through National Planning Corporation (NPC), Member FINRA/SIPC, a Registered Investment Adviser. Additional advisory services offered through Lexco Wealth Management Inc.(LEXCO), a Registered Investment Adviser and Wealth Management Group of N.A. (WMGNA), a Registered Investment Adviser. Lexco, WMGNA, The Hartford, and NPC are separate and unrelated companies.