College Savings
529 College Savings Plans*
Many parents today suffer from sticker shock when they learn what it costs to send their children to college. While the cost of college can be a hard pill to swallow, it’s never too early to get familiar with a 529 college savings plan.
Anyone can set up a 529 Plan: Parents, Grandparents, Aunts, Uncles. This list goes on. A 529 Plan is unlike any other education savings account. 529 Plans can cover almost any educational expense.
The money added to a 529 account grows tax-free when used to qualifying educational expenses. Also, depending on the state you live in, you can get a tax break for the contributions you make.
Call us today, to start planning our futures', our children's education now.
Saving for College
How soon should you start saving for your kids’ college education? The earlier the better, even if the amount you save at first is modest.
With college costs rising at twice the rate of inflation, it’s important not only to set money aside, but to invest it with an eye toward keeping pace with education inflation. Every little bit helps.
The key—just as it is with pursuing any long-term financial strategy—is to get started. Please reach out today if you have questions about college savings. And please pass along the email addresses of anyone you know who might receive help from these short, educational emails.
Countdown to College
The first step in creating a plan to pay for a child's, grandchild's college graduation is to face up to what the education is likely to cost. Here you can work to Understand the Cost and Benefits of College.
If you'd like to discuss college savings and how to develop your savings strategy, call the office any time to schedule an appointment.
Ways to Save for College
Here’s an overview of a few educations funding options available to help you understand what option may be appropriate for you.
529 plans are offered by states, and contributions can come from anyone, including relatives and friends.
Coverdell Education Savings Account Plans, unlike 529 plans, are owned by the child and can be used for qualifying education expenses including ones prior to college.
Uniform Transfer to Minors Act (UTMA)/Universal Gifts to Minors Act (UGMA) plans are plans that vary from state to state and are subject to taxes every year. These accounts are in a child’s name and the responsibility is on them to pay the taxes, though they are taxed at a lower rate. These are opened through a regular brokerage or mutual fund account.
It’s important to start the conversation today to see how all these college plans work with financial aid and how you still may qualify for assistance. Reach out today to conduct your planning discussion—let’s find the way together.