Tips for Parents with Kids Heading to College
It is that time of year again where you start thinking about getting the kids back to school
Many of our clients have recent grads that are heading off to college for the first time!! This is a very exciting time for the family and we wish you all the best of luck. We also have a couple of tidbits of advice for things that may not be front of mind.
Things are Changing
Over the past many years you have been able to sit at the dinner table and chat about what’s going on in your kids’ lives and you probably had a decent finger on the pulse of their coming and going. If something happened to them, you’d get a call and would be able to help make decisions for them. Once your child turns 18, you no longer have that right to make decisions for your child whether it be healthcare or financial.
We highly recommend our parents write up a Health Care Directive and Power of Attorney for their kids. This enables the parent to help make decisions should their child come into a car accident, health issues or issues with the college. Without this directive, the parents really are cutting the proverbial cord and have very little control over decisions for their kids. (Read more about what a Power of Attorney can do). Some may agree that they are fine with this, others may want to see their attorneys right away. After all, the frontal cortex of the brain (which is where we make logical decisions) does not develop fully until about the age of 25. Perhaps our kids could use a little advice from Mom and Dad still.
529 Plan Withdrawals
We spend so much time talking about how we can save to these accounts that often times we don’t think through what we can and cannot spend the withdrawals on. For example, did you know that a computer is only a qualified expense if it is required by the institution? Please feel free to review this short article on drawing down your 529 savings account and call us with questions. We are here to help you with all of your financial needs.
Author: Kelly Pedersen
Caissa Wealth Strategies is a fee based registered investment advisory firm, specializing in personal, dynamic wealth management. Based in Bloomington, Minnesota, Caissa financial planning professionals provide individualized strategies for every client. You can expect more from CAISSA, and in turn, you will get a fiercely loyal advocate on your side. For more news and information on wealth management solutions, visit Caissa Wealth.