FORT WAYNE, Ind. (WANE) – A Fort Wayne area investment firm offered reminders for parents on how to save for college and college graduates on how to manage their college debt.
Doug Lockwood, Brand President and Wealth Partner of Hefty Wealth Partners, located in Auburn, advises parents should start early and invest in a 529 account, an education savings plan operated by the state of Indiana that offers a tax credit.
“Best college savings vehicle today,” Lockwood said of the 529 account savings plan.
Lockwood said every parent who enrolls in a 529 savings plan receives a 20% state tax credit for every dollar you put in up to $5,000. Every dollar taken out to pay for college is tax-free.
In regards to those who have already graduated college with loans, Lockwood said you have to consider the type of loan you have and understand what your personal budget is and how you plan on paying back that debt.
“20% of everything we make should be going to our financial goals,” Lockwood said. One of them being, paying back debt.
For more information about the 529 savings plan, visit IN.gov.
For more information about Hefty Wealth Partner’s, visit their website.