College graduates are leaving school with record amounts of student loans. If you have young children, can you help them avoid a heavy college debt load in the future?
You might want to invest in a tax-advantaged college savings account, such as a 529 plan or a Coverdell Education Savings Account. You might also want to consider a custodial account, known as UTMA or UGMA.
Understandably, you’re not saving for education in isolation you likely have many goals you’re trying to achieve, including retirement. But by starting to save and invest early, you can put time on your side so you won’t have to delay saving for one goal in favor of another.
Clearly, saving for college while simultaneously building resources for retirement is something of a “balancing act.” And, because everyone’s situation is different, there’s no one right answer for everyone. So take the time to find the solution that works for you.