Welcome to the sandwich generation, those who are effectively “sandwiched” between the financial obligation to care for their aging parents and the college education costs for their children. While there may be a number of planning strategies for this generational phenomenon, we are going to break it down into easy to manage bites by starting with the Section 529 Plan.
Take a financial bite into planning for the needs of The Sandwich Generation's college age members by investing in a Section 529 Plan best suited to your family's needs:
When choosing a plan, fees and performance should be one of several primary considerations, others include:
The availability of a state tax deductibility for 529 contributions in 30 states should be investigated bearing in mind that only a few states offer deductions for contributions in plans outside of the home state.
For those who would find it difficult to make ongoing contributions, consider programs that offer rebates for purchases, obviously the higher the rebate the better assuming that there is no to low cost for the program.
Certain plans, banks, brokerage firms, and a variety of financial service products and companies offer tuition rewards programs such as the SAGE Scholars Tuition Rewards program. By enrolling in Tuition Rewards, in association with an affiliated financial institution or by being employed by one of over 135,000 employers nationwide, students will earn guaranteed minimum scholarship credits at nearly 400 participating private colleges and universities across America, the scholarships may equal up to one full year of tuition!