As the market remains volatile, outsourcing continues to increase, and technology grows more and more advanced, you might be one of the many people are retraining to pick up new skills and new jobs. Or you might just love to learn. In either case, if the difficult economy and cost of education is making your continuing education goal seem like a tall order, here are a few simple tips to help make the goal more accessible.
Explore your options: adults who save for college often have a more flexible timeline than their kids: instead of being expected to spend exactly four years on a degree, many adults may be able to spend more time earning a degree -- or may be able to get a two-year degree while capitalizing on prior experience. Keeping your options open can be a good way to keep costs under control.
You don't have to do it on your own: the recent stimulus bill was designed to stimulate the economy in several ways, including funding education to retrain workers—and to keep them in school and out of the workforce in order to manage unemployment. For low income adults, Pell Grants and the expanded Hope Credit can offer a boost to educational savings. Explore these scholarship and financial aid options to help lessen the financial burden.
Consider a 529 Plan: A 529 Plan offers a flexible college saving solution that lets you grow your savings tax-free as long as you spend them on an accredited school. 529 Plans have a high contribution limit and flexible investing options, which can make them an effective tool for seeking long-term educational savings goals. Unlike certain other college savings options, 529 Plans are not just designed for younger students.
Put a plan in place: Before you can save effectively, you'll need to know how much you really need to save—and when you need to save it. If you've decided when you'll start school, and what your budget will be, you can work with a financial advisor to plan out your portfolio. For very short-term goals, a simple savings account or CD might be the best option. But for longer-term college savings, you can explore other investment options. With a plan in place, you'll know when you're on track and when you need to adjust your savings or change your college plans.
Education pays long-term dividends. By setting college savings goals early and checking on them often, you can help make sure you get the most out of your decision to continue your education.
Investments in 529 college savings plans are neither FDIC insured nor guaranteed and may lose value. Please note the plan's disclosure document includes details such as investment objectives, risks, charges and expenses, and other information that you should read and consider carefully before investing. Plan disclosure documents can be obtained directly from the plan.