VeriPlan's personal financial planning software helps you to plan college savings and other education savings for your children
VeriPlan's fully integrated and automated financial calculators and financial software tools help you to determine whether your current savings rate would lead to a sustainable financial plan across your lifecycle.
VeriPlan also can be used as a financial calculator to test how earning, budgeting, spending, and saving more or less would affect the viability of your financial planning during any year of your lifetime. In addition to projecting your yearly ordinary living expense budget across your lifecycle, VeriPlan lets you plan for major expenditures, including private preparatory school and college education costs.
When used as a Children's Education Expenditure Planning Tool, VeriPlan can help you to understand your education savings needs by:
- projecting annual expenses for any number of children in private preparatory schools, college, and graduate school
- growing projected educational expenses with inflation or at rates that differ from expected inflation
- offsetting costs by anticipated educational scholarships, grants, and loans
A separate section of VeriPlan's Expense and Savings Tool provides a detailed example of using VeriPlan as a finance calculator that plans the future college savings, expenses, scholarships, and loans for two children who currently are very young.
An example of VeriPlan's Expenses graphic that includes planned college expenses for children.
Below
is an example of the VeriPlan's Expenses graphic: "Ordinary,
Planned, and Adjusted Expenses plus Income, Employment, &
Property Taxes (real $/yr)." This graphic shows Sue and Sam's projected living
expenses, ordinary income taxes, and their FICA (Social Security),
Medicare, Property, and Real Estate tax payments. This expenses
graphic, which VeriPlan automatically develops for every financial
plan, projects your expenses related to living expenses and the taxes
that are related primarily to non-asset earned and retirement income.
This graphic includes:
- Your ordinary living expenses and major planned expenses with adjustments and with your real dollar growth rates from the the Expense & Savings worksheet
- Your Federal, State, and Local ordinary income taxes from the Taxes worksheet
- Your Federal, State, and Local ordinary income taxes on asset income and reinvested interest and short-term capital gains from the Financial Assets worksheet. Because ordinary earned income and ordinary asset income tax treatments are similar, VeriPlan combines both earned income and asset income sources here for taxation purposes. Generally, most asset income taxes will be from current interest and dividend payments on cash and bond/fixed income assets.
- Your tax payments related to FICA (Social Security), Medicare, self-employment, property, real estate, and other non-capital gains taxes
Concerning their children's college expenses, note the substantial amount of planned expenses, when Sue and Sam are in their early 40s. In this particular VeriPlan scenario they would have to withdraw about a 50% of their cash, bond, and stock assets at the time to pay for their children's college education!
