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Would you like to save thousands of dollars on college costs?

If you're like many Americans, you face a variety of challenges. Most parents and some grandparents find themselves fighting a battle on two fronts: saving for retirement and college at the same time. This can be tricky. Saving more money in one of the plans invariably leads to saving less in the other. Obviously you want to have enough savings to retire comfortably, but at the same time, to put your kids or grand kids through a quality college.

So, where do you draw the line between taking from one to give to the other? And how do you plan successfully to find a proper balance that benefits both you and your children? The problem is highlighted by the question of whether or not you should withdraw from an IRA to help pay for college tuition. The general consensus seems to be: not if you can help it. Generally you want to have a successful enough college savings program that you don't have to worry about finding alternative sources of money for tuition. But with skyrocketing college costs, it's a more difficult proposition than it was even a decade ago.

One advantage of an IRA withdrawal is that the money can be used for any qualifying educational expense. But, the disadvantages are obvious. You're taking away from future retirement savings and you're reducing the amount of earning power you previously held. You're also faced with the fact that IRAs have contribution limits that can make it hard to restore your previous savings level.

The good news is there are ways to substantially reduce college costs, sometimes by thousands of dollars! Even if a student is just a couple of years from entering college a lot may still be done. The traditional financial planning approach has been to start saving as early as possible to pay the full college cost. In contrast, my approach seeks to cut college costs so you have more for retirement.

One way to do this is through what I call "Tuition Discounts". This is FREE MONEY given by universities to students! Knowing how to position your student to get these discounts might save thousands of dollars a year and there are no income or asset restrictions.

When income and assets preclude needs based financial assistance, another way to cut costs is through "Tax Scholarships". A tax scholarship is a financial technique that creates money by shifting assets to your child over several years and by taking advantage of their yearly tax capacity. These tax savings can add up quickly and can mean possibly thousands of dollars in extra money that can be used towards a higher education. The tax savings, in effect, reduce the out-of-pocket costs of college. Unlike many scholarships or grants, an affluent family is actually more likely to realize these tax savings.

Planning for college can be overwhelming. The variety of options and plans available is enough to drive a person crazy. That's why it's important to always consult with your financial planner before making any long term decisions. By teaming up with your planner, you may be able to send your child to college with the confidence and knowledge that your future, and your child's future, is financially secure.

You may also be able to save a great deal of money in the process, through tax credits and other incentives.

So give it the old "college try" and schedule an appointment today. You can speak with a friendly, knowledgable CompassMark Counselor today at (888)391-1429 or email info@comapss-mark.com.