Saving for College AND Retirement

Saving simultaneously for college education and retirement can be a challenge, requiring discipline and sacrifice to reach both goals.  College costs, even for state schools, can be high, and have grown at rates outpacing inflation for several years.  As the chart below implies, even if you get an early start, you’d have to put aside $432 each month to have enough on hand to send your newborn to a state school.  Below is a Monthly Savings Goal* Through Final Month of College

Type of School                                Public                    Private                   Ivy

Current Annual Costs                     $16,000                 $37,000                 $47,000

Child’s Age:        Newborn             $432                       $999                     $1,269

   Eight                    $578                      $1,337                   $1,698

   Sixteen                $1,224                   $2,831                   $3,596

*Assumes 6% annual college cost increase and 6% annual investment return.

**Current annual costs are approximated based on College Board data and include tuition, fees, room, board and books.

There are potentially tax-free ways to save for education costs.  Contact APEXX for more information 608-254-6600.