*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.