College Funding Strategies

When you see the market fluctuate, do you wonder if your kids can still go to college? Last week we talked a little about helping get the right school, and if retirement and college funding is possible (it is!). This week I wanted to offer a few key tips on college planning, and also link you to an article I wrote about staying cool in a volatile market. You can find the article here. http://creativefinancialgrp.com/Custom.aspx?apId=17521

Save!

The first rule of getting to college (or investing) is saving. If you don’t save you don’t have capital and without capital, you won’t get far. Put aside something each day, week, or month toward your students college. Whether it is cash under the mattress or a 529 plan, make sure you are putting money back for the future.

Invest

While burying your money in the backyard may keep it safe, it isn’t going to help it grow. With the inflation rate, even if you have enough to pay for your students schooling today, next year it will fall short. That is why investing toward college is so important. Your money needs to at least grow at the rate of inflation to keep its same value. Inflation rates are currently at about 2.9% so you should look to gain that as an average over your saving for college, if not more. There are many options to help your money grow, and most of you probably already have investments aimed at helping pay for your child’s schooling.

Review!

If you already have investments set aside for your child’s college education, where are they? How you are saving today has a big impact on the future. There are a number of ways that you can make the BEST use of what you have. Have your savings plan reviewed by a professional.

Thanks for reading,

Kurt

Kurt Supe offers securities and advisory services through cfd Investments, Inc. and Creative Financial Designs, Inc, respectively. Member FINRA/SIPC. Indy College Funding is not affiliated with the cfd companies.

Life is full of so many choices. Where are we having dinner? What clothes should I wear? Should I call in sick today? With every choice made, another option is tossed to the side. If I ride my bike to work, my car has to stay behind. If I wear dress shoes, my adidas won’t leave the closet. If I save for retirement, I can’t pay for my child’s college. 

Let’s hold it right there. Sometimes in life you CAN have your cake and eat it too. Most families I meet with have two primary concerns, How do I pay for college and can I retire. While there is no simple answer to those questions, I have a few tips that will point you in the right direction

1. Review your spending:

The first question I ask families is “Where are you financially?” I am surprised at how many families are unsure on their monthly expenses compared to their income. A lot of people I meet with have money that is just disappearing bit by bit through daily spending. If you develop a budget and stick to it, that disappearing money can begin to build your retirement or in a 529 plan.

2. How are you saving for retirement?

How you save for retirement is an important issue. There are many factors to consider so I have written a great article here to help you out. http://creativefinancialgrp.com/Custom.aspx?apId=16659

3. College Choice:

Choosing the right college with your student is key. A lot of our children may dream of Harvard, or Stanford, but the financial reality might not agree. There is nothing wrong with your student aiming high, encourage it, but also help them to make an informed decision. Often times attending a school like IUPUI for undergraduate studies is the best move financially, especially if you child plans to move on to graduate school after. The financial burden is much less on you and your child, and could be the difference between $50,000 in loan debt, and $300,000. It could also mean the difference between retirement and working until you’re 80. If your student is set on a school that you can’t possibly afford, let them find out how to finance it. It seems harsh, but I have found it often opens their eyes to the reality of how much money college is. Starting life with a couple hundred thousand dollars of debt is not a good plan for anyone.

4. Talk with an expert:

Take some time out to meet with a College Financial Planner, like me. Indy College Funding offers free College Financial Plans to families. It’s good to get some expert advice and a fresh look at what is, isn’t, or might be possible. You would be surprised at how much that helps.

Thanks for reading,

Kurt

Kurt Supe offers securities and advisory services through cfd Investments, Inc. and Creative Financial Designs, Inc, respectively. Member FINRA/SIPC. Indy College Funding is not affiliated with the cfd companies.

So you have the FAFSA submitted, college applications in the mail, and you’ve met with Indy College Funding; now what? If you haven’t already, it is probably a good time to start talking with your child about career choices. I can hear your replies now, “it’s too soon” or “give them a couple of semesters to feel it out” but choosing a future career field has weight for todays’ decisions.

Some schools are great for engineering, but not so great for teaching.   A school like the University of Kentucky is good for everything from football to business; so deciding on the right school has a lot to do with what your plans are for after college. Although nothing has to be set in stone, it is good to start your student talking about what their interests are, and what kind of job might fit them for the long haul. Too many times I have seen students change majors, career plans, and schools at the drop of a hat; leading to huge financial burdens, slim job prospects, and angry parents.

Deciding on a major/career path now can save a lot of time and money. The right major can also save a lot of worry about finding a job after college. A recent study from Georgetown University gives some great insight on unemployment rates and wages for graduates in certain fields of study. I have written an article that dives a little deeper into the statistics here: http://indycollegefunding.org/employment-and-earnings   Check it out and let me know what you think.

Ultimately your students’ future is just that, THEIR FUTURE. Help your child get on the right track but don’t push them into what you want. Just imagine pushing your tie-hating, outdoors loving child into pursuing an MBA instead of a degree in Natural Resource Management, only to have them quit the business world in the first year and work at a National Park. That might be an extreme example, but you get the point. Encourage your student to go after what they love, but be sure you provide them with all the information and opportunities you have at your disposal.

Thanks for reading!

Kurt

Kurt Supe offers securities and advisory services through cfd Investments, Inc. and Creative Financial Designs, Inc, respectively. Member FINRA/SIPC. Indy College Funding is not affiliated with the cfd companies.
 

When it comes to college there are a lot of choices. Determining which school is the best choice for your student (or yourself) can be a daunting task. I wanted to give you some quick tips on choosing a college, and then if you can stand anymore, I have included a link to an article I wrote that goes a little more in-depth.

1. Find a college you can afford: It’s a wonderful thing to have a student accepted to a school like Penn State, or NYU, but can you cover the costs? One of the issues I see most is families straining financially to get their student started at a school that is out of their range of affordability, only to find out at the end of the first year that the money isn’t there to go back the next. This is a huge issue, one of the leading causes of students not returning to school is financial troubles.

2. Don’t go just for the party: IU may have been the #1 party school in the nation in the past, and if that is your student’s focus, they may be moving back in with you sooner than you like.

3. Choose a school around your student: Ultimately your child is going to be the one attending the school. Find a school that suits their needs. If they do well in small settings, look for a school that fits that description. Some students do better with larger settings and more independent work time. Make sure you are sending your child to a school environment that is setup to work for them.

Those are a few quick tips; here is a link to another article I wrote on choosing the right college.   http://indycollegefunding.org/foursteps

As always if you need help determining your best strategy to pay for college get in contact with us here at www.Indycollegefunding.org

Thanks for reading!

Kurt

The other night I walked into my kitchen and hadn’t turned on the lights yet. I ended up tripping on some toys my kids left on the floor and it reminded me of setting goals in my life. You might be asking what tripping on my way to the fridge has to do with goals (and I’m about to explain).

Walking through life without goals is like walking with the lights off. You may have an idea of where you’re going, but you can’t really see how to get there. When you set your focus on where you want to go, it is like the lights coming on. Setting goals helps you navigate around the obstacles standing in the way of you and your future.

When I was a kid, I loved to play football. Like most aspiring football stars, I had a dream to play in the NFL (we will call that a long-term goal). To reach that ultimate dream, I had to start by setting and filling some short-term goals. I made all my practices on time; I spent extra time in the gym so I could be in the best possible shape. I also set a goal to study hard so I could get into a good college to maximize my exposure to NFL scouts. By the time I graduated high school I had met or exceeded all of those goals and I ended up being accepted to the University of Kentucky with a scholarship to play football.

As my college years passed, I realized my dream of playing in the NFL might not be a goal I could realize. Circumstance and chance happen to us all, but whenever one dream fades another one is usually right behind it. I graduated from UK and went on to become a successful financial advisor, but behind all of that was a dream to help others. In 2005 I set a goal to make a not-for-profit company to help people find their best strategy to pay for college by 2006 that goal was fulfilled with the creation of Indy College Funding. But the buck didn’t stop there. To best serve people, I had to have the most knowledge, so I set out to become a Certified College Planning Specialist (CCPS) and achieved that in 2007. I became a CPA in 2011 and Lord willing I’ll complete my Master’s Degree in Accounting at the Kelly School of Business in 2012.

This is a long way of telling you the importance of setting goals. Every goal I achieve has another one tied to the tail end. In life I have found you never really arrive, you just keep moving ahead. This statement is true for college planning as well. Begin by setting some goals early. What does you student want to do for a career? What schools are best suited to the degree your student wants? How are you going to pay for it? Answering these questions will give you a good idea of what direction to go. Some students want a small liberal arts college, some want Harvard, and some are still up in the air, but if you begin today with tomorrow’s end in mind your chances of success will greatly increase.

Here are some quick pointers for setting goals in all areas of life:

· Take some time to find out what you want to accomplish

· Set a timeline for reaching that ultimate goal

· Set some smaller goals in the middle so you can see your progression

· Review your goals often (this helps keep you focused)

· Don’t get discouraged and stay flexible (Sometimes our desires change and so should our goals)

· Read about people who set/accomplished their goals (Inspiration)

Thanks for reading,

Kurt

www.indycollegefunding.org

although not affiliated with Indy College Funding, Kurt Supe offers securities and advisory services through cfd Investments, Inc. and Creative Financial Designs, Inc, respectively. Member FINRA/SIPC

Happy New Year to our faithful readers (or reader depending on this weeks numbers!). I hope everyone is enjoying the first few days of 2012. Indy College Funding will now join the ranks of every other blogger in the world by making our PREDICTIONS FOR 2012:

1. Somewhere in the world, someone will predict the date the world will end.
2. The University of Kentucky will win a National Championship (or deserve to win if they don’t make it.)
3. People all across the U.S. will need advice on the best strategy to pay for college.

If those predictions didn’t quite fulfill your expectations, I have some beginning of the year tips that may be beneficial to you.

If you have a student about to start college, meet with Indy College Funding. We would like to help you determine your best strategy to pay for college, and we will do it at no cost. You can reach us at www.indycollegefunding.org

2011 may be in the books now, but there is still hope for 2012 (in terms of taxes). If you have a CPA, you may want to setup a meeting soon to find out what strategies you can implement throughout the year to help ease your tax liability next year.

If you are blessed enough to have an investment advisor, it may be a good idea to meet with him/her to review your portfolio and to make sure your risk level is where you want it. I always think it is best to meet with your advisor a few times a year, you may have a different plan that already works and that is fine to.

Well I kept it pretty short this week; because I have an important article I wrote called “The Truth about Life Insurance, Annuities and Financial Aid”.   Read it here www.indycollegefunding.org/truth

Until next time,

Kurt Supe

Kurt Supe offers Securities through CFD Investments, Inc., Registered Broker/Dealer, Member FINRA & SIPC, and Kurt Supe offers Advisory Services through Creative Financial Designs, Inc., Registered Investment Adviser. Indy College Funding is a separate and unaffiliated company from CFD Investments, Inc. and Creative Financial Designs, Inc.

The new year is here and there are a number of fast approaching scholarship deadlines. To add to the tumult there is FAFSA season, college applications to complete, and resolutions to keep (or break)! I wanted to provide my faithful readers with a few helpful resources in your scholarship hunt; but first a quick review.

While you might be having dreams of a free-ride for your son or daughter, the reality might look a little different. According to the latest National Postsecondary Student Aid Study (NPSAS), only 5.5% of undergraduate students nationwide received scholarship aid, with the average award being $2,523.31. This polling was from 2007 – 2008, we can expect some updated statistics soon, the 2011 – 2012 survey is underway now. With that said, don’t count yourself out for receiving a scholarship, but be careful not to throw all your eggs in the “full-ride” basket either. Not to beat the FAFSA horse anymore, but FILL IT OUT! This January be sure to complete the FAFSA application, it will leave you with a better idea of how much aid you are going to have to find. For more on the FAFSA see my post from last week.

If you feel your dreams of free college money are now gone, there is still hope. While your all expenses paid trip to the University of Kentucky may be a longshot, there may be smaller awards ($500, $1000, etc…) with much better odds. Below I am posting a few links I have found helpful.

Fastweb is a one of the largest free scholarship search engines around, and has a reputation for accurate matches to your situation. Follow the link at www.fastweb.com. You will have to register and build a profile to find suitable scholarships, but the service is free. Another great FREE website is www.scholarships.com. As I mentioned in a previous post, try and avoid sites that ask for a registration fee while offering “millions in unclaimed scholarship money”. Free search engines are the best bet and make the most financial sense.

An amazing local resource is the Scholarship Directory from Carmel High School. The counselors at Carmel High School have worked tirelessly to provide a spreadsheet of local Indiana Scholarships, and have been gracious enough to provide it for free on their website. Check out http://www1.ccs.k12.in.us/chs/counseling/scholarshipprocess and click on the Scholarship Directory link on the page to bring up the spreadsheet. The Carmel High website also has some quick tips on College Applications; follow the link on the page above to check those out.

That does it for now, stay tuned for our next posting!

Kurt

Kurt Supe offers Securities through CFD Investments, Inc., Registered Broker/Dealer, Member FINRA & SIPC, and Kurt Supe offers Advisory Services through Creative Financial Designs, Inc., Registered Investment Adviser. Indy College Funding is a separate and unaffiliated company from CFD Investments, Inc. and Creative Financial Designs, Inc.