College Savings Timeline

Lo L01 COLLEGE SAVINGS TIΜELINΕ SOCIAL SECURITY AGE 0-8 NEW BEGINNINGS 000-00-0000 *..... JAMES APPLY FOR YOUR CHILD'S SOCIAL SECURITY NUMBER You will need this to set up a 529 college savings plan in the child's name. To apply, simply fill out the birth registration form at the hospital or visit your local Social Security Administration office. If your child is not born, you can set up the account in your own name and change the beneficiary later. 8 5 6 2 3 O 00 DECIDE HOW MUCH YOU NEED TO SAVE RESEARCH YOUR OPTIONS Use a college savings calculator to set a goal that will help you stay on track. Look into your own state's plan to see if they offer any state tax incentives for residents. If you need help, consult a financial advisor. SET UP REGULAR AUTOMATIC CONTRIBUTIONS TO A 529 ACCOUNT Some plans will waive their account maintenance fee if you sign up for direct deposit, and some companies offer employer-sponsored 529 plans and may give matching contributions. 529 TELL YOUR FRIENDS AND FAMILY 529 contributions make great baby shower, baptism and birthday gifts! AGE ...*... 9-13 TIME TO GET IN GEAR RE-EVALUTE YOUR SAVINGS STRATEGY Give your account a check up Adjust contributions if you have more children to save for or your household income has changed. LOGIN HELP YOUR CHILD IF YOU HAVEN'T ALREADY, DEVELOP GOOD STUDY OPEN A 529 COLLEGE HABITS EARLY ON SAVINGS ACCOUNT TODAY! The skills your child develops now will set them up for success later on. Interest in a 529 account is compounded annually, which means you could miss out on significant savings each day you wait. ilıl VIV IF YOU ALREADY HAVE A 529 PLAN, IT'S GET YOUR KIDS INVOLVED TIME TO ADJUST YOUR ALLOCATIONS IN UNIQUE ACTIVITIES Teaching your children to be more An age-based 529 account will shift allocations automatically based on the age of the beneficiary. If your plan doesn't offer age-based options you should manually move toward "safer" investments like bonds as your child gets closer to starting college. efficient with their time now will help reduce potential for stress later on. AGE .*****. 14-16 NOW ENTERING THE WORLD OF HIGH SCHOOL IT'S STILL NOT TOO LATE TO BENEFIT FROM A 529 PLAN If your child is a freshman in high school, the last tuition bill is eight years away, which time to build savings. You can also benefit from state tax deductions no matter how short your time horizon is. you :::: ::: GET TO KNO W YOUR HIGH SCHOOL TEACHERS BEGIN RESEARCHING COLLEGES AND UNIVERSITIES AND COUNSELORS Think about public vs. private, 2-year vs. 4-year and in-state vs. out-of-state options. Talk to students and professors to make sure the school is a good match for the child's personality and interests. Encourage your child to talk to counselors before selecting classes and utilize advice from teachers. They can also help when it's time for recommendation letters. JAMES JOE AP PHYSICS BUILD YOUR AP U.S. HISTORY SCHOLARSHIP START THINKING AP CALCULUS RESUME ABOUT AP CLASSES Include everything from work experience, community involvement, languages spoken, hobbies, athletics and visual and performing arts. 85% of colleges report that AP classes have a favorable impact on admissions decisions. AGE 17-18 THE HOME STRETCH EVALUATE YOUR COLLEGE FUND (OR LACK THERE OF!) CERTIFICATE If you haven't started saving yet, you need to figure out a way to come up with the required down payment for the first tuition bill, and then start saving for the remaining semesters. James Joe, B.Sc BEGIN PREPARING FOR NARROW DOWN THE ACT AND/ OR SAT SCHOOL CHOICES Most schools will accept ACT or SAT scores. Decide which exam is best for your child and plan for at least three months of studying. If you've realized that a traditional four-year school isn't in the budget, consider commuting or attending community college for two years. FEB LEARN ABOUT START LOOKING FOR FINANCIAL AID SCHOLARSHIPS Begin researching federal, state and school programs and find out about any upcoming financial aid nights in your community. Don't forget that February is Financial Aid Awareness Month. The middle of your child's junior year in high school is the ideal time to start applying for scholarships. Remember that even small awards can really add up! AGE 18+ 529 TIME FOR COLLEGE MAKE YOUR 529 WITHDRAWALS We recommend locking in your tax benefits by taking out the maximum amount from your 529 account that will qualify for tax-free treatment. This will likely be 100% of the total qualified education expenses, less $4000, which will be redirected to the American Opportunity Tax Credit. Tuition fee MAKE THE DISTRIBUTION PAYABLE PAY FOR QUALIFIED TO THE ACCOUNT BENEFICIARY EXPENSES It is best to write the check to the student and have them pay their school. This way, you will have better control over the flow of the funds and any non-qualified purchases will be taxed at the student's lower tax bracket. Use the funds to pay for tuition, fees, supplies, equipment and some room and board to take advantage of the tax benefits of your 529 plan. Non-qualified withdrawals will also be subject to a 10% penalty tax. KEEP MAKING CONTRIBUTIONS CLAIM THE AMERICAN 529 TO YOUR 529 ACCOUNT OPPORTUNITY TAX CREDIT You can still benefit from saving with a 529 plan even if your child has already started college. You'll pay less in federal taxes than with other savings vehicles, and you can still collect state tax deductions and credits if they are available. Under current tax laws, a parent can claim a maximum tax credit of $2,500 of a dependent child's college tuition and mandatory fees, as long as they are enrolled at least half-time. Source: Presented by: College Board Savingforcollege.com Savingforcollege.com www.savingforcollege.com ....* .... 回回 口 口 ******