Worried About College Costs? Listen to JPMorgan Asset Mgmt's Advice

Summary

Tricia Scarlata, JPMorgan's head of education savings, discusses the steep rise in college costs and the need for parents to start saving early with 529 plans. She explains the plans' expanded flexibility, including the new Roth IRA rollover option, and contrasts 529s with Trump accounts. The conversation highlights that many families under-save due to misconceptions about overfunding and the broad applicability of 529 funds beyond traditional four-year colleges.

• Average private college cost is around $65,065 per year, with top schools exceeding $100,000.
• Projected 18-year cost for a Penn education could reach $800,000.
• 529 plans provide tax benefits and can be opened by anyone, not just parents.
• Trump accounts are seen as wealth-building tools, not education savings vehicles.
• New Roth IRA rollover provision reduces fear of overfunding a 529.
• About 40% of college students pay full tuition, with selective schools offering little aid.
• Many families mistakenly avoid 529s due to outdated perceptions of their restrictiveness.