Let us offer you our services.

University educations keep rising in price.¹ That’s true of public and private colleges. For the top 50 most expensive colleges, costs exceeded $50,000 per year for students and their parents. But don’t worry. There are strategies you can use to try to mitigate these costs.

First, you might consider the “One-Third Model,” which encourages you to view college expenses for your child in three parts—save one-third of the cost, pay for one-third using financial aid or scholarships, and borrow one-third in the form of student loans. That’s simply one option. Every situation will be different, and you’ll need to speak to a professional to find out what strategy is right for you and your family. 

You need to find a way to balance other long-term planning needs—like retirement income planning—with things like college education planning. Certainly, education is still a chance for many people to earn better jobs and higher wages, although America is also facing a student debt crisis that has dominated headlines and political debates—overall student loan debt in America is approaching $1.6 trillion dollars and is projected to hit $2 trillion dollars by 2021 and $3 trillion dollars by 2030. That’s assuming that nothing changes, of course, in terms of policy.² 

If you think you want to help your child pay for college, now might be the time to start planning.

¹ “Education Planning: A Look at the Numbers,” InvestmentNews (Blog), September 1, 2018, https://www.investmentnews.com/education-planning-a-look-at-the-numbers-75840.

² Daniel M. Johnson, “What Will It Take to Solve the Student Loan Crisis?,” Harvard Business Review, September 23, 2019, https://hbr.org/2019/09/what-will-it-take-to-solve-the-student-loan-crisis.

Insurance is a term people often use but not one they always understand. For customers, insurance companies offer a contract (known as a policy) whereby an individual or corporation receives a promise of reimbursement against possible losses in exchange for a premium. Insurance companies pool risk this way; that means that, in the event an insurance company has to pay out a claim, the company is still bringing in revenue.¹

There are several types of insurance. Some of them—like life insurance—are straightforward. Yet, even in life insurance, there are many things to consider, like term vs. whole life. Other types of insurance, such as fixed indexed annuity contracts, might require even more explanation. You can buy insurance for your car, home, boat, or business. You can also buy insurance for things like needing long-term care in retirement, liability insurance for your business, disability insurance for your profession, and Medicare gap coverage.

People often talk about insurance as “protection,” but it’s really a form of risk mitigation. It ensures that, no matter what twists and turns come with life, clients don’t face their risks flat-footed. Nothing can protect you from risk. However, with a thoughtful, proactive, and detailed insurance plan (as part of a comprehensive financial plan), you may find yourself with more options than you would have had without insurance.

¹ “Insurance: The Complete Guide,” Investopedia, accessed February 27, 2020, https://www.investopedia.com/insurance-4427716.