9 College Savings Tips to Start the Year Off Right

Is saving for college is on your 2017 to-do list? Whether youï ¿ ½re just getting started or staying on track, the following slideshow offers tips to help you meet your goals. If You Already Have a 529 Plan: 1. Check to make sure youï ¿ ½re hitting your savings targets ï ¿ ½ ï ¿ ½Are you aiming to put away a certain amount each month? ï ¿ ½ ï ¿ ½Do you have a total dollar amount you want to save over time?ï ¿ ½ ï ¿ ½ ï ¿ ½If youï ¿ ½re not hitting your targets, what adjustments should be made for 2017? Worldï ¿ ½s simplest college cost calculator 2. Update your goal if thereï ¿ ½s been any major changes in your household ï ¿ ½ ï ¿ ½If youï ¿ ½ve moved out of state, should you change 529 plans to take advantage of potential state tax breaks? ï ¿ ½ ï ¿ ½If you welcomed a new family member, should you open another 529 plan? ï ¿ ½ ï ¿ ½Has your household income changed due to a job loss or promotion? If so, think about whether your current contribution amounts still make sense. ï ¿ ½ When should you switch 529 plans? 3. Review your planï ¿ ½s performance ï ¿ ½ ï ¿ ½You can look up the performance of your investment option on your 529 planï ¿ ½s website or in the quarterly report.ï ¿ ½ ï ¿ ½ ï ¿ ½How does the growth of your 529 plan look compared to the growth of your retirement account (net of fees) over the same time period? ï ¿ ½ ï ¿ ½Check Savingforcollege.comï ¿ ½s quarterly performance rankings to see where your plan stacks up against other 529 plans. 5 ways to judge your 529 planï ¿ ½s performance 4. Decide if you need to make an investment change ï ¿ ½ ï ¿ ½In December 2014 President Obama signed the ABLE Act into law, which allows disabled Americans to take advantage of tax-deferred savings for education, housing and other expenses related to living with a disability. ï ¿ ½ ï ¿ ½The Act has also made a change to traditional 529 college savings plans that allows for twice-yearly investment changes (the limit was previously one change per year). ï ¿ ½ ï ¿ ½If your investment objectives have changed or your current portfolio is underperforming you have two opportunities to make a change this year. How to select the best investments for your 529 plan If You Donï ¿ ½t Have a 529 Plan Yet: 5. Set a savings goal ï ¿ ½ ï ¿ ½Consider the age of the beneficiary and when the first tuition bill will be due. Remember you can continue to save while attending college so you wonï ¿ ½t need the full amount all at once. ï ¿ ½ ï ¿ ½Think about public vs. private and in state vs. out-of-state colleges ï ¿ ½ this can make a big difference in the total amount you need to save. ï ¿ ½ ï ¿ ½Will there be any other sources of funds to pay for college? Grandparents, financial aid, scholarships? 4 ways families are tackling high college costs 6. Do your homework - research 529 plans ï ¿ ½ ï ¿ ½Check out your home stateï ¿ ½s plan first to see if any tax breaks are offered for residents.ï ¿ ½ ï ¿ ½ ï ¿ ½Remember that fees and expenses, as well as investment options, can vary among 529 plans.ï ¿ ½ ï ¿ ½ ï ¿ ½Savingforcollege.com offers a helpful tool that lets you compare plans by different features. 5 simple steps to enrolling in a 529 plan 7. Enroll in your plan ï ¿ ½ ï ¿ ½529 accounts can be opened directly through the planï ¿ ½s website or through a financial advisor. ï ¿ ½ ï ¿ ½Youï ¿ ½ll likely pay a sales charge if you invest in an advisor-sold plan, but you may benefit from working with a professional. ï ¿ ½ ï ¿ ½If youï ¿ ½re comfortable selecting a plan on your own, visit your planï ¿ ½s detail page on Savingforcollege.com for more information on how you can enroll. 7 myths and realities of 529 plans 8. Set it and forget it ï ¿ ½ ï ¿ ½Most 529 plans can be linked to your checking account for automatic recurring investments.ï ¿ ½ ï ¿ ½ ï ¿ ½Minimum initial contributions are sometimes as little as $15 or $25. ï ¿ ½ ï ¿ ½Some plans also offer automatic payroll deduction as another way to simplify saving. It pays to start saving: 5 ways to get started now 9. Try the Path to College Savings! ï ¿ ½ ï ¿ ½Whether youï ¿ ½re looking to open your first 529 plan or youï ¿ ½ve been saving for years, the free Path to College Savings can help. ï ¿ ½ ï ¿ ½The Path features interactive charts and graphics to show users how different decisions can impact their goals.ï ¿ ½ ï ¿ ½ ï ¿ ½Set realistic goals based on your school choice and find the best plan for your familyï ¿ ½s needs. Originally Posted: 2015-01-07 Is saving for college is on your 2017 to-do list? Whether youï ¿ ½re just getting started or staying on track, the following slideshow offers tips to help you meet your goals. If You Already Have a 529 Plan: 1. Check to make sure youï ¿ ½re hitting your savings targets ï ¿ ½ ï ¿ ½Are you aiming to put away a certain amount each month? ï ¿ ½ ï ¿ ½Do you have a total dollar amount you want to save over time?ï ¿ ½ ï ¿ ½ ï ¿ ½If youï ¿ ½re not hitting your targets, what adjustments should be made for 2017? Worldï ¿ ½s simplest college cost calculator 2. Update your goal if thereï ¿ ½s been any major changes in your household ï ¿ ½ ï ¿ ½If youï ¿ ½ve moved out of state, should you change 529 plans to take advantage of potential state tax breaks? ï ¿ ½ ï ¿ ½If you welcomed a new family member, should you open another 529 plan? ï ¿ ½ ï ¿ ½Has your household income changed due to a job loss or promotion? If so, think about whether your current contribution amounts still make sense. ï ¿ ½ When should you switch 529 plans? 3. Review your planï ¿ ½s performance ï ¿ ½ ï ¿ ½You can look up the performance of your investment option on your 529 planï ¿ ½s website or in the quarterly report.ï ¿ ½ ï ¿ ½ ï ¿ ½How does the growth of your 529 plan look compared to the growth of your retirement account (net of fees) over the same time period? ï ¿ ½ ï ¿ ½Check Savingforcollege.comï ¿ ½s quarterly performance rankings to see where your plan stacks up against other 529 plans. 5 ways to judge your 529 planï ¿ ½s performance 4. Decide if you need to make an investment change ï ¿ ½ ï ¿ ½In December 2014 President Obama signed the ABLE Act into law, which allows disabled Americans to take advantage of tax-deferred savings for education, housing and other expenses related to living with a disability. ï ¿ ½ ï ¿ ½The Act has also made a change to traditional 529 college savings plans that allows for twice-yearly investment changes (the limit was previously one change per year). ï ¿ ½ ï ¿ ½If your investment objectives have changed or your current portfolio is underperforming you have two opportunities to make a change this year. How to select the best investments for your 529 plan If You Donï ¿ ½t Have a 529 Plan Yet: 5. Set a savings goal ï ¿ ½ ï ¿ ½Consider the age of the beneficiary and when the first tuition bill will be due. Remember you can continue to save while attending college so you wonï ¿ ½t need the full amount all at once. ï ¿ ½ ï ¿ ½Think about public vs. private and in state vs. out-of-state colleges ï ¿ ½ this can make a big difference in the total amount you need to save. ï ¿ ½ ï ¿ ½Will there be any other sources of funds to pay for college? Grandparents, financial aid, scholarships? 4 ways families are tackling high college costs 6. Do your homework - research 529 plans ï ¿ ½ ï ¿ ½Check out your home stateï ¿ ½s plan first to see if any tax breaks are offered for residents.ï ¿ ½ ï ¿ ½ ï ¿ ½Remember that fees and expenses, as well as investment options, can vary among 529 plans.ï ¿ ½ ï ¿ ½ ï ¿ ½Savingforcollege.com offers a helpful tool that lets you compare plans by different features. 5 simple steps to enrolling in a 529 plan 7. Enroll in your plan ï ¿ ½ ï ¿ ½529 accounts can be opened directly through the planï ¿ ½s website or through a financial advisor. ï ¿ ½ ï ¿ ½Youï ¿ ½ll likely pay a sales charge if you invest in an advisor-sold plan, but you may benefit from working with a professional. ï ¿ ½ ï ¿ ½If youï ¿ ½re comfortable selecting a plan on your own, visit your planï ¿ ½s detail page on Savingforcollege.com for more information on how you can enroll. 7 myths and realities of 529 plans 8. Set it and forget it ï ¿ ½ ï ¿ ½Most 529 plans can be linked to your checking account for automatic recurring investments.ï ¿ ½ ï ¿ ½ ï ¿ ½Minimum initial contributions are sometimes as little as $15 or $25. ï ¿ ½ ï ¿ ½Some plans also offer automatic payroll deduction as another way to simplify saving. It pays to start saving: 5 ways to get started now 9. Try the Path to College Savings! ï ¿ ½ ï ¿ ½Whether youï ¿ ½re looking to open your first 529 plan or youï ¿ ½ve been saving for years, the free Path to College Savings can help. ï ¿ ½ ï ¿ ½The Path features interactive charts and graphics to show users how different decisions can impact their goals.ï ¿ ½ ï ¿ ½ ï ¿ ½Set realistic goals based on your school choice and find the best plan for your familyï ¿ ½s needs. Originally Posted: 2015-01-07