Released on: June 25, 2008, 10:39 am

Press Release Author: Marci Hait / Bisson Barcelona

Industry: Food & Beverage

Press Release Summary: Expert offers tips to help save but says parents should
protect themselves first

Press Release Body: DEDHAM, Mass. - With a shaky economy and soaring tuition costs,
one financial expert is warning parents to avoid dipping into their retirement funds
to pay for college.

"Kids will get a loan for college, no one will give you a loan to retire," said
Barbara Shapiro, vice president of HMS Financial Group. "A secondary education is
not an entitlement and no parent is obligated to pay for it. Parents should do the
best they can and if that means they can't do anything, that is OK."

In an ideal world, the certified financial planner professional and certified
divorce financial analyst said parents should start putting money away for their
child's college fund immediately after birth and invest that money in a 529 plan so
it can grow tax-free. Unfortunately, she adds, that is not always feasible.

"If you once promised your child that you were going to help them pay for college
and now you suddenly find yourself divorced, widowed, out of a job or caring for an
elderly family member, you have to change with those circumstances," said Shapiro,
who works with many divorcees and single parents. "If you are struggling to make
ends meet, you need to create an emergency fund for yourself before you do anything.
Your kids will have 40 years to pay off those loans. If you think you are going to
pay for college and the kids are going to support you in retirement, think again."

The Dedham, Mass.-based expert said parents who may not be able to pay for their
kids' educations can best assist their children by: teaching them a solid work ethic
and encouraging them to get a job, providing them with financial lessons so they can
manage money and then, if necessary, helping them research and apply for the various
loans and scholarship opportunities available.

On the other hand, she said those who can afford to start saving for college should
do so immediately. She believes 529 plans are the best tools for college funds
because they grow tax-free, are in a parent's name and must be used for some form of
education after high school. These plans can protect the money from former spouses
who are untrustworthy and can also stop a child from spending the money
irresponsibly.

"Start a 529 as soon as you can and tell your family and friends about it," said
Shapiro, adding that savings bonds should be avoided as they are not a good
investment. "When your loved ones ask what to get your child for his or her birthday
or Christmas, tell them to make a donation to the 529 plan. Even if you don't have a
lot of money or cannot contribute regularly, every bit helps and the sooner you
start the faster it will grow."

Before starting a 529 plan, however, Shapiro said parents should check with their
state because each has its own rules and regulations. She adds that parents should
also consider the term of the investment because if a student is going to college in
less than five years, the money should probably be left as cash so as to avoid the
short-term volatility of the market.

"Just remember, if you are scraping by and you don't have an emergency fund, a 529
is probably not right for you," she said. "It you get caught with your back against
a wall and you need access to that money, you will be paying taxes and fees. Parents
need to let go of the belief that they are obligated to pay for college and
prioritize what is important - and what is important is survival and being able to
retire comfortably. Children are resilient, resourceful and bright; they will
survive."

For information about various savings options, Shapiro recommends that parents visit
www.savingforcollege.com. For information about HMS Financial Group or to contact
Shapiro, visit www.bshapiro-cdfa.com.



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Contact Details: Marci Hait
marci@bissonbarcelona.com
603-664-5776