College Planning Relief
Newsletter - December 2015
“The education of our children is an investment in our future.”
“Educating the next generation is an investment we cannot afford to forego.”
“A college education is an investment that will provide our children the opportunity to have a better life than the previous generations.”
These are all quotes and phrases that we have heard spouted from political leaders for decades. The reality is that a college education is an investment and one that should be seriously considered. However, it should also be looked at from a slightly different perspective - the return on that investment.
If you were contemplating investing some of your hard earned money into an investment program, OR you were considering borrowing money to invest in something (this is exactly what is happening when families take out loans for college), you would take a number of things into consideration.
For example, what is the return on my money going to likely be? How long will it be before I can expect a return on my money? What are the risks associated with this investment? Is there any chance I could lose my investment (AKA drop out of school)?
A wise investor would also consider a number of different investments before settling on one. He or she would compare those investments head to head based on the answers to the questions above. The wise investor, oftentimes, would then consult with a financial professional or somebody better trained in making such important decisions before they wrote the check to the investment company.
You see, college IS an investment. In fact, for many families, it is the single greatest amount of money that they will invest in anything and yet very few families look at it this way. This is a mistake. An investor blindly throwing hundreds of thousands of dollars into an investment they knew nothing about would be considered reckless and not likely someone who others would pattern themselves after.
However, this is far too often the approach that is taken for college. Paying for college requires a strategy. Arm yourself with the proper tools to make an informed and educated decision. This involves diligently doing your homework and seeking help from a financial professional knowledgeable in the college funding process.
We are in the business of helping families through the major life transition of sending their children to college. For many, it will be the most expensive time of their lives and, if not handled properly, could cost them their retirement. If you or someone you know needs the help and guidance of a trained financial professional, don’t hesitate to contact me. Remember, you shouldn’t have to choose between your child’s college and your retirement.