3 Easy Steps To Pay Your Childs College Without Breaking Your Budget

1. START EARLY AND start a 529 account. This can easily be done through a brokerage account like fidelity or many of the other brokerage accounts ".A 529 plan is a tax-advantaged investment vehicle in the United States designed to encourage saving for the future higher education expenses of a designated beneficiary. In 2017, K–12 public, private, and religious school tuition were included as qualified expenses for 529 plans along with post-secondary education costs after passage of the Tax Cuts and Jobs Act." Wikipedia definition. Basically it is an account that is tax free that you can put money for college or, due to the recent changes this account can not only be used for college but can also be used for K-12.

2. Start a ROTH IRA. This is customarily a retirement account. The difference between this retirement account and say a regular IRA is in a Roth IRA taxes are paid up front and all the growth and earnings are tax free. Compared with a regular IRA where all of the money you take out is taxed as income. Anyway, back to the ROTH IRA, you can take out penalty free withdrawals for certain things like higher schooling or trade schools. This means that this account will grow tax free all the way up until college when you need to take some out. Hopefully you still have some left to retire on, but hey that's another story. The point is you can take money out of this account without penalty and without tax when it is time to send your child to College. You can deposit up to $6000 per year into you or your child's account but it has to be earned income (Quick tip you can put up to $399 of earned income into the account for your child without having to file any taxes). This money you can invest and watch it grow tax free. This account is only available to single people who make less than $124,000 per year and married couples 196,000 per year.

3. Invest in things that aren't yester-year. Invest in things like 3-D printing stocks, grayscale cryptocurrency stocks, paypal, docusign, chip companies, pot stocks and things that involve the digital transformation around us. Old are the Exxon, Shell, oil companies in general.

Note: I am by trade a chemical engineer. I have no official documentation that allows me to give you investment advice. These are just a few of my tips. These are a few places where I have done really well and my family has done really well. We also see these areas doing very well in the future or I obviously would not recommend them to you.

Lastly, start early. One of my dads favorite lines is. "It is not about timing the market, it is about time in the market". It is not hard and whatever you can spare invest it. The object of the game is start early. Your net wealth will compound like a snowball over the years. You will be able to leave your kids lined up. You will be surprised what it can turn into. Just think if you would of invested in the grayscale bitcoin account in November you would of already tripled that investment and it is not done growing yet. We are at the beginning of cash being phased out. Get in on the digital transformation of things and get in as fast as you can.

If these three things can be done successfully then you're offspring, you're wonderful little second chance to get it right in this life, will not be saddled with some of the student debt that you or I had to pay back or possibly still owe. These 3 things are all common knowledge to a large part of America, but some people are absolutely clueless. I really hope this article can help just one family out there stay out of student loan debt.

I hope you got a lot of useful information from this article and look for more articles from me in the future. I hope to hear some questions from some of you so I left my email at the bottom of the page.

My email is [email protected]

Thanks,

Travis "Topcat" McDonald