Atlantic Capital Management

Atlantic Capital Management (105)

Wednesday, 30 October 2013 00:00

Financial Planning for College

Written by

As summer comes to a close it can only mean one thing: hundreds of thousands of college students from all over the nation and the world will be returning to the Commonwealth to pursue some form of higher education. And while most of those students are looking forward to learning new things, meeting new people, and crisp Fall afternoons tailgating (we’ll skip over the part about winter parking bans for now), many parents are pondering how, exactly, they’re going to pay for their kids’ four-year excursion to the land of higher learning. As a popular radio commercial so aptly puts it, “This is the time of year when the logo on the sweatshirt starts appearing at the top of the bill!”

At Atlantic Capital Management, we help many families effectively plan and pay for college. In our experience, there is no “magic bullet” for college financing; like most other forms of investing, it requires planning, due diligence, and willingness to stay focused on the goal: paying for your kids’ education without going broke (or bankrupting them) in the process. Below are some tips, gathered from our direct experience, for effectively planning for and managing the college funding process.

It’s never too early to start: As with most investment scenarios, it’s wise to let the power of time and compounding work in your favor when it comes to college planning. The average yearly cost for a private four-year institution is now over $32,000. The sooner you can get started on saving for college while your children are still young, the more time you’ll have to make that money work for you. Invest what you can afford to, and make adjustments as life circumstances change.

Do your research: Your kids aren’t the only ones who should be hitting the books. New college financing options hit the market every year, and you should take the time to keep up with the changes and implement them, as necessary, in your portfolio. “Tried and true” instruments like 529 plans have been enhanced by things like the Coverdell “college IRA,” which allows for tax-free withdrawals for tuition, books, fees, and housing. Do your research, or consult your financial professional.

Understand the financial aid options: Most families assume that they won’t qualify for financial aid. In reality, even the top-tier institutions give a large percentage of students some kind of aid. So if you’re facing a near-term tuition scenario, file that FAFSA as early as possible! Carefully evaluate your options for grants, scholarships, and loans. Many families can put together an effective “hybrid” college finance plan even when faced with a short time frame. Work closely with the financial aid offices at prospective schools.

If you’d like to learn more about our approach to helping families pay for college, please call us at (508) 893-0872 to schedule a free consultation.


Tuesday, 15 October 2013 00:00

Financial Security for Longer Life Expectancy

Written by

These days, Americans are living longer, healthier and more productive lives. Thanks primarily to advances in medicine, healthcare, and overall quality of life, average life expectancy has risen steadily and dramatically over the past 50 years. Forty percent of retirement-age men will live to be at least 85, and fifty-three percent of women that age will live to be at least 88. Overall, the average life expectancy in the United States is now 78.6 years, up from 69.7 years in 1960. Retirees and seniors living longer, healthier lives would appear to be a good thing for everyone involved, right? Not so fast, my friends. Without planning properly for it, living long into your “golden years” could quickly go from something you’ve dreamed about to a complete nightmare…particularly if your money dies before you do!

As we’ve discussed in previous articles, planning for your family’s financial security is a multi-faceted endeavor. From investments to insurance, the probability that you (and your spouse and children) are going to live longer adds a few new wrinkles to that planning process. Below are some suggestions for maximizing your financial security for a longer life expectancy.

Re-think “retirement”: It should seem fairly obvious that the longer you live in retirement, the more money you’ll need to…live in retirement! If you’re approaching traditional retirement age, you may want (or need!) to consider ways of forestalling living off of your retirement savings. For example, can you re-career or work in a more limited capacity for several years beyond traditional retirement age to supplement your income? Can you adjust your investment strategy or portfolio to maximize those additional years spent in the workforce? If you’re a younger investor, can you adjust the scope of your investment strategy, or your career arc, or both, to take into account working longer into your “retirement” years?

Plan for the long, long haul: With the help of a certified financial planner, map out a plan for a retirement period that lasts well into your 80s, and perhaps even into your 90s. Strive to understand the implications of long life expectancy on the principal balance of your nest egg; your goal should be to formulate a plan which allows you to live off a reasonable income stream for as long as you can before spending down the principal balance of your investments. Remember that time, in this instance, works just as easily against the value of your portfolio as it does in favor. Although we don’t mean it negatively in this sense…plan for the “worst-case scenario!”

Consider “longevity insurance”: Like a private pension - longevity insurance is another option for retirees seeking to turn their savings into a steady income stream throughout retirement. Unlike other strategies, annuities can offer a guaranteed income stream that will last as long as you and your spouse live if set up properly. With an immediate fixed annuity, you “buy it, set it and forget it.” As long as the insurance company remains solvent, annuity owners generally get a check for the same amount every month – they can even set up payments to last as long as they live, so that the longer they live, the more valuable the annuity becomes. They can also be set up to continue to pay to the surviving spouse in the event of death. Consider diversifying your investment strategy to include fixed-income annuities as part of your “worst-case scenario” planning.


Our Blog


(12 articles)


(24 articles)


(24 articles)


(15 articles)


(18 articles)


(12 articles)


(3 articles)