The following is a hypothetical example of how Fairway Financial interacts with the community.
This is a fictitious creation by the author to demonstrate our services. None of the names or images belong to actual clients, accounts or relationships.
Tony and Amanda have been working with the advisors at FairWay Financial for years, but their focus has always been on directing money to their retirement accounts. They have that part of their lives on the right track, but they also have twin boys in third grade. College is about 10 years away and having two in school at one time could come with huge financial consequences.
One of their consistent messages has been that they don’t want their kids to be burdened with the same kind of debts they graduated college with.
They are both in their early 40’s and are still paying for school loans accumulated 20 years ago! We discussed the different types of accounts they could use for this purpose, focusing on withdrawal rules and penalties. The solution that worked best for them was a dedicated college savings account which offered advantages to them in terms of how the growth in the account would be treated.
We then calculated for them how much they would likely need to accumulate in order to put the twins through four years of state school. We worked that back into a monthly savings goal and Tony and Amanda were able to make some adjustments to their monthly cash flow. They now feel comfortable that when the twins head off to college they will have the funds available to cover the costs.
Saving consistently while your children are growing can help avoid the sticker shock of college tuition.