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If the investments in your childs college fund arent performing well, what else can you do?
Financial experts weigh in.
Also see how much college costs in each state.
Income items on FAFSA are assessed on a sliding scale between 22% and 47%.
Youll have to weigh which route ends up being more financially smart in the long run.
This could mean investing in a tax-efficient manner, or using tax strategies to pay less in taxes.
However, these accounts are regarded as the childs assets, Shimmy said.
Therefore, their impact on eligibility for financial aid is greater than that of parent-owned accounts.
This function makes I bonds a great option for maintaining the buying power of your college savings.
Additionally, theyre one of the safest investment choices available, since theyre backed by theU.S.
Your child does have to earn an income, however, to be eligible for one in their name.
Although they were created mostly for retirement savings, Roth IRAs give flexibility for educational costs.
Contributions can be taken penalty-free forqualified education expenses; withdrawals at any time are not penalized, Shimy said.
This guarantees that the child will have whatever specified amount you plan for at certain ages, he explained.
The parents stay in full control of the money or can transfer ownership to the child if they choose.
This has become much more popular since children are now able to use the money for college or retirement.
It grants significant flexibility while also adding in tax advantages.
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