Save for College or Save for Retirement?
With Mission Tuition YOU can do BOTH!
All parents want to send their kids to college, but more and more of us are finding it far too difficult to save for college in this time of rising tuition rates and a shaky economy. In fact, it is getting to the point where we believe that ‘tapping’ into a 401K, or cashing in a retirement plan, will be the only way for our children to receive a ‘higher education.’
It was only a generation ago when parents made sure to put their child’s college funding as number one on their priority list, but many parents are now being forced to postpone their plans to save, or simply not save for college at all. Unemployment is a key factor in all this, as well as lower wages – and the urgency that everyone feels after each “congressional meeting” has come to a close, to save for their own retirement. There are so many issues right now with Medicare and Social Security that people are truly living in fear. They believe that their senior years will not be paid for, and that help will simply not be there when they arrive at the magic number.
The national unemployment rate stands at around nine to nine-point-two percent (U.S. Bureau of Labor Statistics), but the actual number may be much higher than that because many do not qualify for unemployment, while others have come to the end of their benefits. These, unfortunately are not the only issues we face. There are a slew of workers who have had to take pay cuts in order to keep their jobs. And, let’s face it, paying the mortgage and feeding our children has become a much bigger priority than saving for a college education.
The higher tuition rates, we’ve already covered in other articles, and they are still increasing much faster than inflation.
So now, with all other avenues exhausted, parents get to their retirement savings. Parents know that it is taking far longer and becoming much more expensive to head into retirement. Their future dreams of having a boat, or driving across America, or traveling…these are becoming more ‘Once Upon a Time’ stories than actual realistic facts. Financial advisors are also now warning people that they may need to save two or three times the amount they thought they needed in order to have even a comfortable retirement.
Everyone wants to retire one day, and no one wants to live on Social Security benefits that – per our government – may be well under $1000 a month. All of this bad information and data causes one result: Put money away in 401K’s instead of saving for college.
But can you do both? Is it possible to save for college and still be able to save for you retirement and keep your 401K invested? Yes…and that’s where this fantastic company comes in!
Mission Tuition figured out the ‘game play’ when it comes to being able to have an outlet for both retirement and education. By partnering with all types of companies that YOU already know and shop at: Circuit City, Petco, SEARS, Walgreens - and the list goes on; everywhere you buy food, clothing, magazines, flowers, gifts, books, toys, games, appliances, automotive supplies – Mission Tuition has put together a way you can save for your child’s education without touching any retirement accounts, or stressing over where the money is going to come from! You simply open up a FREE account with Mission Tuition; then, every time you make one of your regular daily purchases at these stores, or on the Mission Tuition website, you get money back that is deposited directly into an “educational savings account” that is held at Wells Fargo bank. The coupons, rebates, in-store discounts – everything - is placed there, while you and your spouse and/or family decide what 529 plan will be the best for your child’s education
Retirement: Take full advantage of any retirement savings plan that is available at your workplace. Since employee contributions are deducted from your paycheck, this is a completely painless way to build up retirement savings.
College Education: You need to establish a 529 plan for your children. One of the big advantages to these plans is their flexibility, and the fact that the parents control the savings within the plan. If your child is able to get a scholarship, the savings in the 529 plan can be used for another family member or withdrawn (with taxes and penalties on the earnings) and used for the parents’ retirements.
How to save for the 529 pan? Simple. Sign up for a FREE account with Mission Tuition and the money you save every day simply begins to build in your “educational savings account.” Already, you are saving for retirement AND education in the easiest and most stress-free ways humanly possible. But there is more.
You are the savings side of the equation on this subject, but your children are also part of the relationship. They need to keep their grades up, participate in extracurricular activities, and make sure that when it is time to fill out their college applications, they have stunning credentials! This comes with family discussions. This way, with everyone involved, a child can find the right school which is the best match for their passion, drive, and savings, that will offer them a truly great future unhindered by paying back student loans.
Every state now has at least one 529 plan available, and it’s up to each state to decide whether it will offer a 529 plan and what it will look like, meaning 529 plans can differ from state to state. By making sure that you have signed up for a FREE Mission Tuition account, you can save every single day and give yourself time to research the features and benefits of every 529 plan before you invest.
There is no need to rush into something that you do not fully understand. So, really, there is nothing more simple than opening a Mission Tuition FREE account; having an “educational savings account” held at Wells Fargo bank, while you shop on-line at Mission Tuition and in your already favorite stores. Here, you receive the in-store discounts, as well as the advertised rebates from each of Mission Tuition’s retailers online. All of this goes directly into the savings account. AND you can use any of your existing debit or credit cards to make purchases. If your favorite card earns miles or points, you receive them in addition to Mission Tuition’s cash rebates, doubling your benefits with every purchase. This really does give you the time to research the best 529 plan for your child’s education.
There are as many benefits to having a Mission Tuition account, by the way, as there are to one day being able to use the funds you have saved with Mission Tuition to fund a 529 plan. With 529’s, contributions are not deductible from the donor’s federal income tax liability, but many states provide state income tax deductions for all or part of the contributions of the donor. Beyond the potential state income tax deduction possibilities, a prime benefit of the 529 plan is that the principal grows tax-deferred and distributions for the beneficiary’s college costs are exempt from tax.
Everyone is eligible to take advantage of a 529 plan, and the amounts that can be put in are substantial (over $300,000 per beneficiary in many state plans). Generally, there are no income limitations or age restrictions. So, as you use your FREE Mission Tuition account, and save the money that you did not even know you had, you can truly do an in-depth search on the best 529 pan that offers the best tax advantages.
Another little added extra bonus where 529’s are concerned? The assets in a 529 are not counted as part of the donor’s gross estate for estate tax purposes. Thus, 529 plans can be used as a perfect estate planning tool.
Mission Tuition is a truly ‘fresh’ and forward-thinking company that has found a way for ALL parents to find a bit of peace in this harsh economy. With Mission Tuition and the incredible benefits they give, a parent can save for retirement AND save for college at the same time, with no worries!
If you have not checked out Mission Tuition yet – THIS is the time!
Until Next Time, Everybody.
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Questions regarding Mission Tuition:
16255 Ventura Blvd.
Encino, CA 91436