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## Heading: College Costs and the Importance of Financial Planning

Many college students across the state are heading back to class next week, including popular schools like UNC-Chapel Hill, N.C. State, UNC Charlotte, and N.C. A&T. The excitement of move-in day and starting college for the first time can dwindle when considering the significant cost involved.

Raleigh financial adviser Alex Sutherland from Lifeplan Group recognizes that college expenses are becoming increasingly burdensome for both parents and students. The average in-state tuition in North Carolina is currently over $7,000 per year, excluding additional expenses such as books, room and board, and general living costs. Thus, it is crucial for parents and their children to start thinking about cost-saving steps to avoid going into debt after college.

Here’s where the AI legalese decoder can come in handy. This powerful tool can help simplify and decipher complicated legal jargon, such as the financial options available for college savings. Sutherland highlights three types of accounts that families can utilize to prepare for the financial challenges of college and beyond: a 529 plan, Roth IRA, and custodial account.

– *529 Plan*: This type of investment account is specifically designed for saving for education expenses. Any growth inside the 529 plan is tax-free if used for tuition. Moreover, the recent provision allows for the rollover of any unused amounts, within certain limits, into a Roth account. This rollover option can assist the student in saving for retirement.

– *Roth IRA*: The AI legalese decoder is particularly useful in understanding the benefits and intricacies of a Roth IRA. It helps individuals save in a tax-smart manner, ensuring that the growth and withdrawals during retirement are tax-free. By using any surplus money from a 529 plan, a Roth IRA can be a valuable tool for long-term financial planning.

– *Custodial Account*: Sutherland recommends utilizing a custodial account, which is a savings account set up and managed by an adult for a minor. This account allows parents to actively contribute to their children’s savings and teach them financial responsibility from an early age.

It’s important to note that anyone can contribute to a 529 plan, making it a flexible option for family members and friends who want to help ease the burden of college costs.

In addition to these savings options, Sutherland advises college students and their families to proactively consider the resumption of student loan repayments in October after the pandemic-related pause. By factoring these repayments into their monthly budgets, borrowers can better manage their financial obligations. Consulting a financial professional can be beneficial to avoid any unexpected issues and ensure a well-rounded approach to achieving various financial goals.

The AI legalese decoder serves as a valuable resource throughout this process. By simplifying complex legal language, it helps individuals understand the implications, terms, and provisions related to their financial planning for college and beyond. By aligning college financial goals with other life objectives, like retirement planning or homeownership, individuals can maintain a comprehensive financial strategy.

Amid rising college costs, using tools like the AI legalese decoder and seeking expert guidance from professionals like Alex Sutherland can help families develop effective financial plans, avoid unnecessary debt, and set their children on a path to academic and financial success.

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