Tag Archive: FAFSA

Saving on Kid’s College Costs by Retiring Early

As a parent of 2 small children I consider helping to cover their college expenses as one of the largest barriers to being able to retire early and achieve financial independence. I started my career saddled with roughly $70,000 of student loan debt so I fully understand the stress that being in that position creates. I also appreciate that being responsible for your own education and the costs associated with the choices you make on what school to attend, can be a good springboard into being a responsible and accountable adult. Based on both of these points, I’ve decided to strive for a compromise which is to help minimize the college cost liability for my children and then make them accountable for managing these reduced…
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Save for College: Are 529 Plans the Solution?

One of the biggest hurdles to early retirement for parents is helping cover the cost of their children’s college.  The prevailing wisdom in many circles is to set aside funds in a 529 account.  For those not familiar with 529s, a 529 plan account is a tax-advantaged savings account designed to save money towards future education expenses. Advantages There are two main advantages to 529 savings plans.  The first is that any funds that are used to cover qualified education expenses are exempt from federal income taxes.  This can be a significant reduction in tax liability depending on the amount that has been saved in the account.  The second advantage is that many states provide tax deductions or credits for residents.  This can reduce the…
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