College Savings Strategies

(savingforcollege.com)

(savingforcollege.com)

The cost of a college education gets more expensive every year. The average annual cost for a four-year public college for the 2006-2007 school year was $12,796, according to a study by collegeboard.com. And private colleges cost over twice as much. Although saving for college may seem like a daunting task, it is a goal that is within reach for families today, especially if they start saving early in a tax-advantaged way.

Over time, federal and state taxes can claim up to 25 percent or more of an investor’s return. With tax-advantaged education accounts, earnings grow tax deferred and withdrawals used for qualified education expenses of the designated beneficiary are free from federal tax. College savings strategies you may want to consider include:

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tags college, 529 college savings (all tags)

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