There are lots of options out there for people who are planning to pay for college
ASHEVILLE, N.C. (PRWEB) November 26, 2018
According to a recent survey, the “average” college graduate in 2016 has student loan debt of over $37,000. This alarming figured served as the basis for a recent post at American IRA’s blog, in which the Self-Directed IRA administration firm asked how a Self-Directed IRA could be used toward student loan debt.
The post pointed out that the trend is not just recent. There are over 44 million Americans with an outstanding student loan balance, with a total estimated around $1.4 trillion. For those investors interested in building a nest egg for retirement, eliminating this debt is a high priority—and often the first step on the road to building net worth that can sustain until retirement.
The article points out that a Self-Directed CESA (Coverdell Education Savings Account) can provide tax benefits while being used “strictly to fund education.” These Coverdell Accounts are typically set up by parents or grandparents of a child in school.
The account holder in such a situation would pay appropriate taxes on the contributions to the Self-Directed CESA. But the earnings can grow tax free—with the caveat that they must be used toward education.
“There are lots of options out there for people who are planning to pay for college,” said Jim Hitt, CEO of American IRA. “It is not only about building a retirement fund when it comes to self-directed accounts. People can also exercise a great deal of control in planning for the high costs of education. And given just how many students now graduate school with a tremendous amount of student loan debt, it only makes sense that people plan for these situations well in advance.”
The article also notes that with a Self-Directed CESA, a parent could contribute up to $2,000 annually for each beneficiary, which means that having more children could expand the maximum contribution amount.
American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC.
The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $400 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.
As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term "they" refers to American IRA, located in Asheville and Charlotte, NC."