in place, 529 Plan withdrawals for private college can have a negative affect on financial aid. "Wait, my 529 Salesperson told me the withdrawals are tax-free." Well, not exactly. If you receive financial aid, they likely are not completely tax-free. Worse, some colleges treat withdrawals as "student income" and reduce aid by 50% of the withdrawal. You may be wondering, "Why are we using a jack-of-all-trades-investment-salesperson to guide us on complex college financial planning matters?" What a coincidence - we're wondering that, too! (And talking to us IS free.)
Here's a thought: Paying down your mortgage increases your wealth. Using accumulated home equity as a future loan source is the best way to borrow for college. And saving 5% or 6% (or whatever your mortgage rate is) is the SAME THING as earning 5% or 6%. And it's guaranteed. Another thought: Are you protecting your family? To learn more specific planning tips and how they'll help your family, Contact Us.