INVESTMENT OPPORTUNITIES
COLLEGE SAVINGS
Children love dreaming about what they want to be when they grow up. Of course, parents want to do everything they
can to support their children’s dreams.
Unfortunately, as college costs continue to rise, many parents just like you are concerned about the cost of their
children’s college education — and their ability to pay for it.
In fact, the statistics surrounding the costs of college can be a bit frightening. Costs are increasing about 5% a
year, which is higher than the rate of inflation. At this rate, a child in kindergarten today will need about $90,000
for four years of tuition and expenses at an in–state public university and about $200,000 at a private college.
Yes, it’s very important to save and be able to provide the opportunity to have your children go to college. After
all, making sure your children have the best possible education can be vital to their success in life.
But it’s also important to try to avoid sacrificing your retirement for the sake of your children’s education. When
you stop contributing to your retirement account you do two things: first, you reduce your retirement funds and second,
you take the chance of never regaining the habit of saving for retirement.
The truth is, with the right financial strategy, you can plan for both your retirement and their education. The good
news is that time is on your side, and there are many options to help you achieve your goal.
An important step is to start planning today by contacting a CFS* Financial Advisor at CommunityAmerica Credit Union.
Your CFS* Financial Advisor can help you develop a sound strategy for reaching your long-term financial goals –– including a
college investment plan. How? Through our CFS* Financial Advisors –– dedicated career professionals, registered through
our broker, carefully selected and trained to serve credit union members.
Most of all, we want you to have confidence in your CFS* Financial Advisor
to act in your best interest — which means you can expect our advice to be objective, fair and honest.
And when it comes to planning for a college education for your children, your CFS* Financial Advisor
has the answers. We’re here to help you understand all the options, including tax
credits, you can use to put your child through college.
We invite you to call your CFS* Financial Advisor today, so we can begin
working with you to develop the right plan for your child’s future.
The benefits of saving early
The earlier you begin saving, the smaller the amount you'll have to set aside each month. For every dollar you save,
you earn money through interest. The longer you save, the more money you earn. For example:
• A family that saves $50 per month from the time their child is born will amass more than $16,000 in savings by her high school graduation, based on a 4% rate of return. Almost $6,000 of this is interest earnings.
• If the same family starts saving when their daughter is seven years old, they would need to save about $100 per month to save the same amount. Choosing the right college is just the beginning.
Of course, it’s no secret that the key to reaching a college investment goal is to start investing early. But
that still leaves a lot of unanswered questions, like:
• What options are available for financing a college education?
• Which investments should you use?
• Can you rely on scholarships and grants to pay for your child’s college education?
• What are Lifetime Learning and Hope credits, and how can they help pay for your child’s / grandchild’s education?
These days, one of the tax–advantaged options include new state–sponsored college savings programs. These
programs sometimes are called 529 Plans, after the section of the Internal Revenue Code that created them.
There are also Coverdell Education Savings Accounts (CESAs), formerly known as Education IRAs, and other investment
and insurance products to consider like a Variable Universal Life Insurance program.
The real question is, which college investment plan is right for you?
We invite you to call your CFS* Financial Advisor today, so we can begin
working with you to help develop the right retirement plan for you.
* Investments and investment advisory services offered through CUSO Financial Services, L.P. (CFS), an independent broker-dealer and SEC Registered Investment Advisor are Not NCUA/NCUSIF insured, are Not credit union guaranteed and May lose value. CommunityAmerica Credit Union is affiliated with CFS. Financial Advisors are employees of CommunityAmerica Credit Union and registered through CFS. (Member FINRA/SIPC)