How can I save for school? Jose Palafox of Starfox Financial Services shares tips on saving money for your children’s college.
“We all know it’s completely expensive today to send somebody to college. Being that I have five kids I know this very well,” shares Jose Palafox, owner and managing partner of Starfox Financial Services, LLC.
“And a lot of times we have to make sure we put money away for college for those kids. But here’s the thing that I’ve also found. The story that I like to tell a lot of my clients is that you are saving for college, you don’t have to necessarily have to save it in a ‘college account’ as people like to do. Although that is important and it can help – it can even help some on taxes.”
“Here is a question that I have or a lot of people. If you put the money in the kid’s name, and it becomes their account when they become 18 or 21 – depending on the state you are in, the question is what is that kid going to do with it at age 18 or 21?”
Jose Palafox shared his experience in the video above about a high school friend that received funds at 18 and what happened soon after having access to the account.
“It’s ok to save for college. Just make sure it’s something that kids can’t control – because they may not use it for college.”
“One of the things we do at Starfox is to always access risk. What’s the risk in the situation that we are putting you in – the investments that we are putting you in? In this case, so many people forget that when you are 18, you have a different mindset than at 30, 40 or 50 years old – and not as responsible as 18.”
Starfox Financial Services, LLC is an independent Registered Investment Advisor (RIA) with a focus on serving the unique needs of the high net worth investor. Because we are an independent RIA, we are able to offer wealth building tools and advice without bias or conflict of interest.