Saving for a child’s college fund is no easy task. Some parents even joke about saving for college before their children are even born. So how can parents effectively save for college? Fox 2 News recently turned to Diane Compardo, managing partner and leader of the Compardo, Wienstroer, Conrad & Janes Team at Moneta for the answer. First off, it is essential to take care of your financials first. Your children can always borrow funds for college, but you cannot borrow funds for retirement. You should not take care of your child financially if you cannot take care of yourself financially. Next, Compardo discussed the benefits of putting assets aside in accounts such as Missouri’s MOST 529 plan. She explained that one of the many benefits of using the 529 plan is that it provides tax-free growth and withdrawals for qualified education expenses. Lastly, it is also important to remember that during the time of college transition, your child is treated legally as an adult as soon as they turn 18. As a result, it is imperative for parents of new college freshman to consider the following key documents:
- Healthcare power of attorney for medical decisions
- HIPAA authorization forms for the authority to speak with healthcare providers
- General durable power of attorney for financial decisions
For Diane Compardo’s entire discussion with Fox 2 News, click here.