College Planning

As you are likely aware, the cost of providing a child with a college education continues to increase at a rate faster than the rate of inflation. In order to keep a realistic perspective on what it will cost to put a child through school in the future, it is important to begin by examining current costs. Here is a brief survey of school's in our region based on tuition, fees, room and board, estimated personal expenses, books and related expenses, and transportation expenses estimated for the Fall 2004 college school year. 1

	Private Schools
	Syracuse University		$39,340
	Alfred University		$31,060
	Clarkson University		$36,542
	Colgate University		$40,540
	Cornell University		$41,869
	Hartwick University		$36,185
	New York University		$41,485
	SkidmoreUniversity		$41,388
	St. Lawrence University		$39,635

The State University of New York (SUNY) offers an excellent educational opportunity. For in-state residents of New York, tuition and fees are discounted. For out-of-state residents the fees are somewhat higher. In this table we show the in-state cost of tuition, fees, room and board for the Fall 2004 school year.

	New York State Schools
	SUNY at Albany		$15,692
	SUNY Brockport		$14,828
	SUNY Buffalo		$15,102
	SUNY Geneseo		$14,705

Depending on how many children you have and how long you have to plan before college our choice of strategies may vary widely.

The first service that we provide is similar to preparing the projections for retirement. We look at what the cost of a college the child may wish to attend is today. We factor in inflation and project what that cost may likely be in the future.

Next we look at any existing savings or investment accumulations which are oriented toward college expenses. We factor in projected rates of return and consider any scholarships or financial aid, which you believe will be available. This can provide us with a sense of the “gap” that exists between what you have and what you will need.

An important step in the process is trying to decide whether there will be eligibility for "Needs Based Financial Aid". In some cases it is clear that no matter what we do in planning, most universities will consider the family to be too wealthy and such aid will not be available. Some times the reverse is true and again no matter what planning we do, this family will likely be eligible for any Needs Based Aid that the college may have available. Our conclusion from this analysis will point us in a direction for making college planning decisions.

For most of our clients the parents are able to come up with some way to get the children through college. The challenge is that although they may be able to survive the college planning problem, these parents compound their retirement planning problem by diverting money that could otherwise be used for retirement savings to pay for college. Quite frankly, the discussions and decisions that we have regarding this sensitive and important issue sometimes rank as among the most important counseling experience that we can provide.

We have access to a wide range of investment services oriented toward accumulating money that may be used to fund college and other education expenses*.

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Each of our services is offered only under a written agreement to provide the specific service selected. Such agreement or agreements shall define the scope and nature of duties accepted by our firm or firms. No agreement to provide service exists until such time as a properly executed written agreement is accepted and exercised by an authorized official of our firm or firms.

Advisory Services offered through WealthPro, LLC, Registered Investment Advisor. Securities offered through The Strategic Financial Alliance, Inc., Member NASD/SIPC. WealthPro, LLC, The Strategic Financial Alliance, Inc., and Solomon Associates^SM are independent entities and each is responsible for its own business.