Page 48 - AAA Magazine – AAA Ohio Auto Club – November 2018

College Fund Continued from page 45
24, account earnings above a certain threshold are taxed at the parents’ highest marginal rate instead of the child’s lower rate. The money inside the account
is considered an irrevocable gift and an asset owned by the student – a real demerit when trying to claim financial aid. And when the student reaches the age of majority, typically 18 or 21, the money can be used for anything the student desires.
Keep your retirement savings earmarked for retirement. In a 2014 Sallie Mae report, an alarming 30 percent of parents saving for higher education expenses said that their retirement savings would be their No. 1 resource to pay college costs. Sensibly speaking, eliminating your debt, starting a rainy day fund and building up your retirement savings should all take precedence over amassing college savings.
The biggest blunder is not saving for college at all. As tuition costs continue to rise, getting any kind of head start on funding a university education is a must
on a family’s financial to-do list. While financial aid is certainly available, it typically won’t pay for 100 percent of all costs. Even small contributions can add up over time through the time value of money, so every dollar you save today is one less
your student would potentially
have to borrow later.
Imagine your child graduating debt-free from college. With the right kind of planning, it could happen. Talk with a financial professional today about the right college savings plan for you.
Please note: Investing involves risk and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
Securities offered through Kestra Investment Services LLC (Kestra IS), member FINRA (www.finra.org) /SIPC (www.sipc.org). Investment advisory services offered through Kestra Advisory Services LLC (Kestra AS), an affiliate of Kestra IS. The Strategic Wealth Management Group is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS does not provide tax or legal advice.
Get Expert College Planning Advi
Jeremy Swank may be reached at 419-522-6636 ext. 101 or jswank@thestrategicwealthgroup.com.
AAA is proud to partner with Jeremy Swank, ChFC and principal of The Strategic Wealth Management Group, to present free financial planning seminars to members. Swank brings a wealth of experience and insight after his past 20 years in the financial industry, particularly in the area of college planning.
Not only is Swank knowledgeable about financial aid and planning, he can assist with college selection, review resumes and cover letters, and help students plan for success in college.
He describes his philosophy as being grounded in thoughtful, personalized decision-making. “I am a firm believer in research and due diligence. Every idea that will be presented has a well-thought-out premise,
and my clients will always know why I make certain suggestions,” said Swank. “I take very seriously the trust that is given to me by my clients and I promise to maintain my integrity in offering financial solutions.”
Contact Swank at 419-522-6636. Members are also encouraged to visit the Group’s website, www.thestrategicwealthgroup.com, to learn more about the services available.
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