A Dad's Perspective on Planning for the Future

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Planning for our children’s higher education is so important!

I thought it would be nice to hear from a Dad’s perspective on planning and saving for the future.

Both John Paul and I went to college and we are so grateful for our education. We want our children to be able to attend college, a trade or vocational school, or pursue any other higher education of their choice.

In our household, John Paul is the money guy! He is always planning and getting our family prepared for our future. He’s very analytical and numbers-oriented. He has some amazing ideas using NY 529 for getting our kids set up for their higher education so I thought it would be fun if he took over and shared his perspective for you.

A DAD’S POINT OF VIEW

Hi Everyone! I’m excited to be sharing my tips for getting Dominic and Giulietta prepped for the future, however they choose.

As parents, you always want what is best for your kids. Lindsay and I decided early on in our parenting days that we would help to guide our kids into whatever career path they wanted. We also wanted to be prepared financially for what they would choose to do with their lives.

By using a NY 529 account, I have found that we can easily manage their higher education investments.

GOAL SETTING

First thing we did was to set up goals for saving for them. How much did we want to save? How much could we afford to save? A little goes a long way over time, so even just putting $5-$10/week into their NY 529 accounts builds up over 18+ years.

For example, here’s the math: $5/week x 52 weeks/year = $260/year x 18 years = $4680

Seeing it this way seems a lot more manageable than just saying we want to save $4600+

FLEXIBILITY

We wanted to invest in an account that would provide flexibility. What if Dominic or Giulietta don’t want to attend a traditional 4 year college, but want to pursue a trade? What does that look like? How can we prepare for that? With a NY 529 account, our kids can use these investments towards any eligible schools such as a vocational or trade school, community college or 4 year college/university.

Lindsay and I have both said we don’t really care what our children choose to do; as long as they are happy, we will support them. By having the option of using this investment in a variety of ways, our kids can really do whatever they want for higher ed.

OUR PLAN

Our thought process is this: if we can save more now, we can have more in the future. We may have to make some sacrifices now, but we know this will only benefit us in the long run. It will really work to our benefit as the kids grow up and move out of the house.

Even though we don’t what things will look like in the future, we can certainly have a plan in place by using our NY 529 account. By utilizing the NY 529 accounts, we will hopefully give our kids an easier time financing their education which will allow for less debt in their future.

While our kids are young, we have some time to save up a good amount of money for them to use in the future. We want to provide for our kids in the best way that we can and by saving now, we will help to fulfill some of their dreams.

We know the cost of college is expensive so if we can help, we want to! Lindsay and I both graduated with loans, however, thanks to our parents, we didn’t graduate with nearly as much debt, had our parents not planned for the future. I want to be able to offer the same thing to my kids.

I hope my tips have helped you. As a Dad to a toddler and baby, I feel it’s my job to make decisions early on to keep us on track for the future. Lindsay and I are so excited to see what Dominic and Giulietta choose to do with their lives!

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XO
-LA

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* Contributions of up to $10,000 are deductible annually from New York State taxable income for married couples filing jointly; single taxpayers can deduct up to $5,000 annually. New York State tax deductions may be subject to recapture in certain circumstances such as rollovers to another state's 529 plan, federal nonqualified withdrawals, or withdrawals used to pay elementary or secondary school tuition, registered apprenticeship program expenses, or qualified education loan repayments as described in the Disclosure Booklet and Tuition Savings Agreement. State tax benefits for non-resident New York taxpayers may vary. Please consult your tax advisor about your particular situation.

Earnings on federal nonqualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. Tax and other benefits are contingent on meeting other requirements. Please consult your tax advisor about your particular situation.

Investment returns are not guaranteed, and you could lose money by investing in the Direct Plan.

For more information about New York's 529 College Savings Program Direct Plan, download a Disclosure Booklet and Tuition Savings Agreement or request one by calling 877-NYSAVES (877-697-2837). This document includes investment objectives, risks, charges, expenses, and other information. You should read and consider them carefully before investing.

Before you invest, consider whether your or the beneficiary's home state offers any state tax or other benefits that are only available for investments in that state's 529 plan. Other state benefits may include financial aid, scholarship funds, and protection from creditors.

The Comptroller of the State of New York and the New York State Higher Education Services Corporation are the Program Administrators and are responsible for implementing and administering the Direct Plan.

Ascensus Broker Dealer Services, LLC, serves as Program Manager and, in connection with its affiliates, provides recordkeeping and administrative support services and is responsible for day-to-day operations of the Direct Plan. The Vanguard Group, Inc., serves as the Investment Manager. Vanguard Marketing Corporation provides marketing and distribution services to the Direct Plan.

No guarantee: None of the State of New York, its agencies, the Federal Deposit Insurance Corporation (FDIC), The Vanguard Group, Inc., Ascensus Broker Dealer Services, LLC, nor any of their applicable affiliates insures accounts or guarantees the principal deposited therein or any investment returns on any account or investment portfolio.

New York's 529 College Savings Program currently includes two separate 529 plans. The Direct Plan is sold directly by the Program. You may also participate in the Advisor-Guided Plan, which is sold exclusively through financial advisors and has different investment options and higher fees and expenses as well as financial advisor compensation.