Disclaimer: This Inside South Florida segment is sponsored by Fidelity Investments. All opinions and views are of the advertiser and does not reflect the same of WSFL-TV.
As the cost of college continues to rise, many parents are finding it more challenging to save for their children's education. Cory Latham, Director of 529 College Savings, joined Inside South Florida to discuss how rising tuition and inflation are affecting parents' savings goals and what they can do to stay on track.
Cory shared that many parents are struggling to balance day-to-day expenses with long-term college savings, with inflation being a significant barrier. He emphasized that while parents are prioritizing their child’s education, many are falling short of their savings goals. He offered key advice on how to plan effectively.
Key Tips for College Planning:
- Have a Plan: Cory recommends starting with a solid financial plan, which can help parents stay on track. For those unsure where to begin, companies like Fidelity can assist in creating one.
- Talk to Your Kids: Parents who discuss college costs and expectations with their children tend to save more successfully.
- Utilize a 529 Account: A 529 plan is a tax-advantaged account that can help parents save more efficiently. According to Cory, parents using a 529 tend to be closer to reaching their savings goals.
Cory also dispelled common misconceptions, such as what happens if funds in a 529 plan aren’t fully used. Recent legislation has made these accounts more flexible, allowing them to cover K-12 tuition, vocational schools, student loans, and even let parents transfer up to $35,000 to a Roth IRA for their child’s future retirement savings.
For more details on how to plan for your child’s college fund, Cory advises visiting fidelity.com/529.
