This is the first blog in our Plan Ahead series. Here at Dixon Financial Group, LLC, it is our job and pleasure to help you plan and implement your financial and retirement goals.
With the graduation season winding down, this is an excellent time to discuss college. Do you know a child that has just graduated from preschool, kindergarten, fifth grade, eighth grade, or high school, and college is in their future? Let's say your graduate is still in the elementary years; saving for college now will give them and you a huge advantage.
When researching colleges, you will find that college education costs are exceptionally high. If this concerns you, consider opening a 529 Plan for a child's education savings. This tax-advantaged savings plan offers a variety of investment options with flexible contribution and withdrawal options. It provides potential tax savings, high contribution limits, and no income restrictions. Contributions grow tax-free, and withdrawals for qualified higher education expenses are also tax-free. The plan can pay for a wide range of qualified education expenses, including tuition, fees, room and board, books, and supplies. Plus, there are no age restrictions on the beneficiary, and anyone can open an account. As CERTIFIED FINANCIAL PLANNER™ professionals, we recommend taking steps to ensure your child's or grandchild's future success.
Suppose you're concerned about how you will be able to afford a child's college education. In that case, we encourage you to contact our office today and schedule a meeting to learn more about how a 529 Plan can help you. As CFP® professionals, we provide expert advice and guidance to help you make informed decisions about your family's financial future. Don't let the cost of college discourage a child from achieving their dreams. Let us help you create a plan to ensure their success.
A brief tuition history.
The cost of attending a four-year university like the University of Nevada, Las Vegas (UNLV) has increased significantly over the past 20 years. Here is a comparison of the cost of attendance for UNLV between the 2001-02 academic year and the 2021-22 academic year:
In the 2001-02 academic year:
- In-state tuition and fees for a full-time undergraduate student at UNLV were $2,034 per year.
- Out-of-state tuition and fees for a full-time undergraduate student at UNLV were $7,214 per year.
In the 2021-22 academic year:
- In-state tuition and fees for a full-time undergraduate student at UNLV are $8,041 per year.
- Out-of-state tuition and fees for a full-time undergraduate student at UNLV are $24,404 per year.
This means that the cost of attending UNLV for in-state students has increased by about 296% over the past 20 years, while the cost for out-of-state students has increased by nearly 239%.
It's important to note that these figures only represent tuition and fees and do not include the cost of other expenses such as room and board, books, and supplies. Additionally, many students receive financial aid or scholarships that can help offset the cost of attendance.
If college is in the future and you want to learn more about the 529 Plan, do not hesitate to contact the LPL Financial Advisors at Dixon Financial Group, LLC. We would be honored to answer your questions so you can make an informed and beneficial investment. Please call our office at 702.982.2479 or email team@dfgadvisors.net to schedule time with one of our LPL financial advisors.
Feel free to share this information with family and friends so they, too, can learn how to invest in the education of the next generations.
David S. Dixon, CFP®
Jacob S. Bierstedt, CFP®, ChFC