Funding higher education as an agency owner: Expert advice from Karl Sakas and Stephen Boatman, CFP®, CSLP®

by Retirement Advisor | Apr 27, 2024 | Vanguard IRA

Get advice on paying for college as an agency owner, including 529 tips, how much to save, how to enlist your kids in helping, and more—in the April 2024 episode of Agency Office Hours with Karl Sakas, featuring guest expert Stephen Boatman, CFP®, CSLP®. Click the timecode links below to “jump” to a specific Q&A segment.

0:00 – Introduction: Advice on college for agency owners, from Karl Sakas and Stephen Boatman, CFP®, CSLP®
3:19 – What’s the purpose of going to college… and what are the downsides?
5:50 – How soon should we talk with our kids about their post-high school plans?
8:10 – How much money should our family save per month for college?
9:20 – How should parents prioritize saving for college versus retirement?
11:18 – Why is increasing our income the best way to save more for college?
12:07 – What 529 alternatives might we consider?
13:16 – Is it better to pay out of pocket or from our 529 first?
14:36 – What should we know about the FAFSA versus the detailed CSS profile?
15:55 – What should we do with our finances when they’re early in high school?
16:52 – Why might we stop making 529 contributions as our kids get closer to college?
17:59 – Do I need to use my own state’s 529 plan? If not, what are the best options?
20:11 – If our child isn’t born yet, can we set up a 529 plan without creating tax issues?
21:45 – How might we benefit from advanced tools like a family ‘dynasty’ 529 plan?
24:21 – How do we calculate our business valuation for a CSS form?
25:30 – What income level can we expect to not receive financial aid?
26:12 – Should my spouse consider working for a private school, to get free tuition?
28:15 – How can we get our kids more involved in the decision and financial process?
28:55 – How can we help our kids make better decisions about future careers?
33:35 – What are the alternatives to becoming a doctor?
35:19 – What inflation rate might we assume for future college costs?
37:34 – How might we benefit from a community college ‘guaranteed transfer’ program?
39:40 – What are the pros and cons of living at home for college?
41:04 – How might moderate-income families (couples under $240K) approach saving for college?
42:50 – If someone’s getting divorced, how does that factor into paying for college?
47:23 – What client questions come up most often in ‘paying for college’ discussions?
48:53 – Are there any ‘geographic arbitrage’ pitfalls, in moving to a new state before college?
50:26 – What are some common mistakes that families can avoid?

Thanks to Stephen for volunteering to share his advice! If you’d like to learn more about his services, visit his website:

LEARN MORE ABOUT: IRA Accounts

INVESTING IN A GOLD IRA: Gold IRA Account

INVESTING IN A SILVER IRA: Silver IRA Account

REVEALED: Best Gold Backed IRA

As an agency owner, paying for college for yourself or your children can be a daunting task. With tuition costs rising year after year, it’s important to have a solid plan in place to ensure that you or your loved ones can afford to pursue higher education. To shed some light on this topic, we sat down with Karl Sakas, agency consultant, and Stephen Boatman, Certified Financial Planner and Certified Student Loan Professional, to get their insights and advice on how agency owners can effectively pay for college.

Q: What are some common challenges agency owners face when it comes to paying for college?

Karl: One of the biggest challenges agency owners face is balancing the financial demands of running a business with the costs of college tuition. As agency owners, we are often focused on ensuring the success and growth of our businesses, which can sometimes make it difficult to prioritize saving for college expenses.

Stephen: Another challenge is navigating the complex world of financial aid and student loans. Many agency owners may not be aware of all the options available to them when it comes to paying for college, which can lead to missed opportunities for saving money.

Q: What are some strategies agency owners can use to start saving for college?

Karl: One strategy agency owners can use is to set up a 529 college savings plan. This type of savings account allows you to invest money in a tax-advantaged way specifically for higher education expenses. By starting to save early and consistently contributing to a 529 plan, agency owners can build a substantial fund to help cover college costs.

Stephen: Another strategy is to encourage your children to apply for scholarships and grants. There are many financial aid opportunities available to students based on their academic achievements, extracurricular activities, and personal circumstances. By helping your children to research and apply for scholarships, agency owners can help offset the costs of college.

Q: What are some mistakes agency owners should avoid when paying for college?

Karl: One common mistake agency owners make is prioritizing college savings over retirement savings. While it’s important to save for your children’s education, it’s equally important to ensure that you are saving enough for your own retirement. By striking a balance between college savings and retirement savings, agency owners can ensure that they are financially secure in the long run.

Stephen: Another mistake to avoid is taking out excessive student loans. While student loans can be a valuable tool for covering college expenses, it’s important to borrow responsibly and only take out what you need. Agency owners should carefully consider the long-term financial implications of student loan debt and explore other options for paying for college before turning to loans.