Skip to content

Education Planning

The increasing costs of higher education have made education planning a very important aspect of personal financial planning.  Education planning does not receive proper attention because many times scholarships are relied on to cover the cost.  Many times Education Planning is procrastinated, because the actual expenditure may not be incurred for many years and is a low priority.  When the tuition bills start to arrive little planning has been done, and you are left scratching your head as what to do next.  Postponing the issue may eliminate several education planning strategies that offer opportunities for financial gain when implemented early.

Financial Aid Planning may be overlooked, because the potential opportunities are not recognized.  In today's high-cost college climate, it should not be assumed that medium and high-income clients are not eligible for financial aid.  For example, a family of five with two in college and income of $150,000 may be eligible for aid at some private colleges. Thus, assuming that you don't qualify may cost you financial aid that you need, and could even be malpractice.

In general there are five basic methods of paying for a child's high education:

  • The child pays for the college by working his or her way through school or through college loans.
  • The family obtains financial aid (e.g., scholarships or grants)
  • The parents pay college expenses out of current income or assets of by taking out college loans.
  • Separate education funds are accumulated over time.
  • Grandparents (or others) pay college costs

We will help identify the specific education goals so that we can determine what funds should be estimated to create a a financially prudent strategy. With the information we gather we will be able to help you create a education plan that you can easily understand and begin.  The following procedures are what we will go over and discuss in order to create a personalized education plan for you and your family:

  • Estimate the total education costs of each of the children.
  • Project the value, or net income tax, of the children's investable assets to the date of starting school.  The result will produce an estimated funding deficit or surplus.
  • Once you determine if there is a surplus or deficit by comparing the estimated education costs to the projected value of the children's investable assets to be used for education.  If there is a surplus, the goal should be met.
  • If a deficit exists, determine the lump-sum, annual, or monthly payment that must be deposited to accumulate the necessary amount.
  • Consider income-shifting techniques to ease the financial burden.
  • Review the feasibility of the third-party sources of education funding.
  • Make preliminarily recommendations.
We take care of your books for you, so you can get back to the job of running your business and generating profits.
Learn More...
We offer payroll solutions that meet your business's needs and enable you to spend time doing what you do best--running your company.
Learn More...
We offer a variety of services to help make sure that you are taking full advantage of Quickbooks' many features.
Learn more...
We're here to help you resolve your tax problems and put an end to the misery that the IRS can put you through.
Learn More...
We offer one-on-one guidance and a comprehensive financial plan that helps manage risk, improve performance, and ensure the growth and longevity of your wealth.
Learn More...

© The Gentry Group LTD. 2021