Are You Saving Enough For Education

<p>Are you saving enough for retirement, college, or student loans? What is the best way to accomplish your goal of college/education savings? What are your options? IRA, Roth IRA, or 529 plan.</p> <p>In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about how to save for your children&rsquo;s or anyone&rsquo;s education. The best route to take if you know you&rsquo;re going to need to save money for education is a 529 plan.</p> <h3><strong>Topics Discussed:</strong></h3> <ul> <li>What is a 529 plan? Tax qualified, tax preferential plan created by the IRS</li> <li>Tax Benefits: Money you&rsquo;ve already paid tax on can be put in 529 plan</li> <li>Pros: Ability to grow asset/have interest on asset without being taxed on growth</li> <li>Cons: Separate accounts create complexity, cost components, and tax penalties</li> <li>How much is your state&rsquo;s 529 plan tax deduction worth? Depends on state</li> <li>Two Types: Most states offer advisor-sponsored or direct 529 plans</li> <li>Inflation: Don&rsquo;t project whether college education costs are going up or down</li> <li>Financial Position: Are you going to actually use funding/income for education?</li> <li>Qualified Expenses: Make educated guesses of what and how much is needed</li> <li>529 Plan: How much to save and when to withdraw for education goals/priorities</li> </ul> <h3><strong>Links:</strong></h3> <p><a href="https://www.savingforcollege.com/article/how-much-is-your-state-s-529-plan-tax-deduction-really-worth">How much is your state&rsquo;s 529 plan tax deduction really worth?</a></p> <p><a href="https://financeforphysicians.co/2021/07/29/how-to-help-your-children-maximize-their-college-education/">How To Help Your Children Maximize Their College Education</a></p> <p><a href="https://financeforphysicians.co/contact/">Contact Finance for Physicians</a></p> <p><a href="http://financeforphysicians.co">Finance for Physicians</a></p>