Ask the Expert

What is your current education savings strategy?

By Casey Bradley September 7, 2017
Question: What is your current education savings strategy?
Answer: “When preparing for education expenses you will find there are three basic methods available. You can save, you can attempt to lower the costs, or you can borrow. Many families pay for college through a 529 account or savings, but there are some disadvantages to this strategy as well. A 529 plan is attached to the market which can be volatile and makes funding college more stressful on the family. Also, a 529 account is restricted, which means that the money in the account can only be used for education purposes. This can be an issue if your child receives a scholarship or decides not to attend a university. The money will sit there, and won’t be able to be used for anything other than educational purposes. Lastly, money in a 529 account is counted towards FAFSA’s calculation of loans and financial aid, which can be problematic if your child plans on taking out student loans.
An alternative to the 529 account is “A Gift of a Lifetime.” This is a whole life policy that can be used to fund your child’s education. The money in the account is not attached to the market and can be used for expenses other than education (wedding ring, house payment, car payment, etc.). Also, a whole life policy on your child doesn’t show up on FAFSA’s radar screen. It is the best of both worlds.”
Thank you, Casey Bradley, a Financial Services Professional from The Piedmont Group.
Casey Bradley can be reached at (770) 789-2969 or by email. His office is located at 1050 Crown Pointe Pkwy, Suite 1800 in Atlanta, Ga 30338

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