Q. My child is about to enter college soon - with expensive tuition. Any good suggestions how to handle it?
A. If you are part of the "sandwich" generation, you face heavy burdens of supporting both your children and your parents. A few principles you could consider:
1. Utilize 529 Plan
If your state has a 529 plan with state tax benefits, even you just put money into it this month and take it out next month to pay for tuition, you will reap the state tax benefits. Do it.
Obviously for a college savings plan such as 529 plan, the earlier you start saving, the better.
2. Get a student loan
The interest rates for student loans are low and parents are not liable for the loans. You can help your child pay for interest while letting them pay for the principals.
3. Apply for financial aid
Don't presume you won't qualify for financial aids, you never know, so please apply for it.
4. Don't sacrifice your retirement savings
There is no one out there helping your retirement, so that should be your priority.
5. Consult with more experts
Don't just talk to high school counselors, talk to more experts, including independent consultants, you might learn something you don't know.
A. If you are part of the "sandwich" generation, you face heavy burdens of supporting both your children and your parents. A few principles you could consider:
1. Utilize 529 Plan
If your state has a 529 plan with state tax benefits, even you just put money into it this month and take it out next month to pay for tuition, you will reap the state tax benefits. Do it.
Obviously for a college savings plan such as 529 plan, the earlier you start saving, the better.
2. Get a student loan
The interest rates for student loans are low and parents are not liable for the loans. You can help your child pay for interest while letting them pay for the principals.
3. Apply for financial aid
Don't presume you won't qualify for financial aids, you never know, so please apply for it.
4. Don't sacrifice your retirement savings
There is no one out there helping your retirement, so that should be your priority.
5. Consult with more experts
Don't just talk to high school counselors, talk to more experts, including independent consultants, you might learn something you don't know.
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