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This is an interesting article for those of you who have or are soon to have children, written by Sue Woodard:

In today's world, a college education is more important than ever. Many of the jobs that do not require a college degree have been outsourced to workers in other countries, or replaced by a computer or machine.

In addition, according to Fed Chairman Ben Bernanke, the income disparity between college grads and non-grads is growing every year. In 1979, college grads earned 38% more than those with only a high school diploma. But today, college grads earn 75% more than those without degrees!

The Cost of Higher Education

Let's face it: college is expensive. And with the cost inflating approximately 5% annually, the cost will only rise.

The type of college your child attends can also have a big effect on the cost too. For example, just one year of tuition, room and board at an average private college runs just over $30,000. On the other hand, a public out-of-state college runs around $19,000 per year. Finally, even a public in-state college is close to $13,000 annually.

So as a parent who wants your child to have the chance to attend college, what can you do? The answer: plan early!

A Tale of Two Families

Let's look at a tale of two parents to illustrate how important it is to get started right away.

The preschool open house was in full swing, and two parents were chatting over the punchbowl, remarking on how they knew time would fly, and before you know it, their kids would be off to college.

Taylor's parents are prepared. They recently sat down with a mortgage professional and learned that completely funding Taylor's four-year education at the local college would cost either $300 per month in savings or—by using the equity in their home—only $133 per month after tax. "What a relief to know it's all taken care of!" they commented to Max's parents. But Max's parents replied, "Hey, what's the rush? Look, the kids are only knee-high right now...we'll worry about this later."

Seven years later, the kids are in 5th grade, and the parents meet up again at a birthday party. College comes up in the conversation, as Max's parents just learned that for him to attend the very same college as Taylor, it would now require them to save $835 per month to be ready on time, which is not something they are prepared to do. Taylor's parents recommend that they meet their trusted mortgage professional, who advises them that by using the mortgage wisely, it will only cost them $260 per month after tax. Much easier to swallow—but it's twice as much per month as Taylor's parents, who planned ahead and started earlier.

The Moral of the Story?

If you want to save for your child’s college expenses, start the investment early. The money you put away today will have more time to gain interest and multiply over time—which means you won’t have to struggle to save as much. Don’t be discouraged by the amount you think you can put away. I have a full array of financial tools at my disposal. Together, we can sit down and calculate a variety of scenarios that fit your budget and will help ensure that your child’s college costs are taken care of.

You should also encourage your children to invest and save too, with a portion of funds from their allowance or a side job like mowing the neighbors' lawn or babysitting. They will see how the value of their savings grows over time, and more importantly, will begin to understand importance of planning for the future.

Finally, as the college years approach, explore scholarships, financial aid, or federal direct aid, which is money that does not have to be repaid. Of course, when your children are young, you just don't know if they will be star athletes or straight “A” students—so it’s always better to plan ahead. If scholarship money does become available, then you’ll have more than enough money in savings, due to your good planning.

If you want to discuss options and strategies on saving for your child's college education, contact me. I’ll make sure the entire process is convenient and, more importantly, that we design a plan that fits your specific goals.

Call me today to make your child’s education a reality.

No it doesn't...today I would like to post about one of my hobbies, buying and of course drinking wine.  An old friend of mine has an online wine shop as well as a store in New York state.  Anyhow, he sent me a mailing last week that I found to be interesting and I thought I would post it here.  Yes this is a plug for him, but it is also interesting to look at other areas of business and how the media has affected them.  As we all know how big a role it plays in our business!

I honestly have not tried any of the wines Scott talks about below and in no way am I trying to push these wines (maybe I'm trying to push liquiddiscount.com a little), but feel free to direct any questions you may have regarding wine his way (info@liquiddiscount.com) since he's the wine expert, I'm the mortgage guy!!!

From an email July 6, 2007 from LiquidDiscount.com:

"One of the more frustrating aspects of the wine business is the influence wine magazines and critics (e.g. Wine Spectator's James Laube and Wine Advocate's Robert Parker) have on sales. On one hand we as retailers benefit from the excitement generated by a high score but on the other hand, wines that don't receive such wonderful scores are harder and harder to move. Unfortunately the line between a "good" score and a "bad" score has consistently moved higher and higher. A few years ago a $10 wine that received 86 points was still considered a good buy. These days unless a wine receives 90 points it is thought of as a "bad" wine, or at least not worth its price. Today we have three wines to debunk this mindset. All three of these wines received 88 points by a well-respected critic and all three should be considered 90+ point quality, especially considering their prices.

First is a wine that is almost impossible to find - a quality Pinot Noir priced under $10! This Chilean beauty is the definition of underrated - lovely bouquet of raspberries and cherries with a fantastic mouth feel. Second is a delicious rosé from Austalia. Made from 100% Shiraz it is darker than most rosés but it is as refreshing and enjoyable as any on the market. A steal for $10! Third is a wonderful Chianti Classico Riserva which beautifully displays the typical Sangiovese characteristics - dark berries, wood, leather and slight acidity on the finish. Fans of Ruffino Tan Label will love the flavors this wine has to offer."