Ep71: College Savings: How to Plan, Save, and Maximize Aid Eligibility

Finding Financial Freedom with The Frugal Physician - Finance, Wellness, Budget, Student Loans, Wealth, Doctor, Fitness, Money

Saving for college can feel like a daunting challenge for many parents, especially with tuition costs rising faster than inflation. In this episode, Dr. Disha breaks down a variety of college savings options and discusses the pros and cons of each, along with their impact on financial aid eligibility. From the popular 529 plans and prepaid tuition options to less common choices like Coverdell ESAs and custodial accounts, she provides a comprehensive guide to help parents make informed decisions about funding their child’s education. Dr. Disha also emphasizes the importance of balancing college savings with retirement goals, ensuring that parents don’t jeopardize their own financial future. With actionable steps and insights, she empowers listeners to build a college savings plan that fits their unique family situation.

Top 4 Takeaways:

1. Start Early & Automate:

   • Begin saving ASAP and set up automatic contributions to take advantage of compounding interest.

2. Use 529 Plans as a Go-To:

   • 529 Plans offer great tax benefits and flexibility for most families. Compare state options for the best fit.

3. Diversify Savings Vehicles:

   • Consider using a mix of 529s, brokerage accounts, and custodial accounts to balance flexibility and aid impact.

4. Review Annually:

   • Reassess your plan each year to stay aligned with changing goals and college costs.

This episode is sponsored by

PearsonRavitz– Helping physicians safeguard their most valuable assets.

This episode is also sponsored by

FacetWealth– Discover how Facet is transforming financial planning for physicians with personalized, flat-fee financial planning—visit facet.com/frugalphysician to start building your financial future today.

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Please note: The content shared on the podcast is for informational purposes only and should not be considered individualized financial advice. It is essential to consult with professionals such as accountants, financial advisors, or attorneys to receive personalized guidance based on your specific needs.