InSight

Financial Planning Dentist
  1. Manage risk, not return – the timeline for college planning is somewhere between 0 and 20ish years. And unlike most of your investments listing the timetable is a non-starter. Families don’t want to see their children delay college because markets are sluggish. So managing the account should center around the timeline and risk, and not exclusively return. 
  2. Keep fees low – over the long-term fees are one of the most important parts of investing, and that is still true for 529s. Using low costs indexes is likely the best way to invest.
  3. Use tax-advantaged accounts – Roths, 529s, really anything that can allow you to continue investing year in and out without consequences on the gains. 
  4. Know your state tax rules – I live in colorado and we have a fantastic tax relationship between income taxes and Colorado-sponsored 529s. Know what that looks like for your state.
  5. Don’t invest in college at the expense of your retirement – if you are planning for both that’s fantastic, but if the committed dollars come at the expense of retirement you need to rethink the strategy. There is no way to finance retirement, and there are ways to finance college.

Find more support for college planning on the InRolled® College Planning page.

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