Education Planning

An education can be one of the best investments you can make—we help you develop a plan for future educational expenses that aligns with your present financial needs and goals.

Whether you’re planning for your child or grandchild’s college education, or planning on going back to school yourself, we will help you establish your goals and structure a plan that complements your other financial goals. There are a number of factors to consider, such as public versus private education, the availability of scholarships or grants, housing costs, work study programs, and the student’s degree goal. There are a number of education saving plan options, including:

529 College Savings Plans
State-sponsored or educational institution sponsored tuition programs that allow you to invest funds on a tax-deferred basis while keeping the account under your control. A 529 plan allows the investor to lock in tuition costs at a specific rate, which makes it a great option for those who anticipate the funds being used at a later date, when inflation has occurred or tuition rates have increased dramatically.

Custodial Accounts (UTMA)
You can put funds in a custodial account that a child will control after he or she turns 18 or 21, depending on the laws of your particular state. These funds are not required to be used for educational purposes.

Traditional/Roth IRAs
An IRA will allow the investor to distribute funds towards other needs in the case that the intended recipient does not attend college, without the withdrawal fees associated with 529 plans. Income taxes may apply to IRA withdrawals, and a Roth IRA currently has a yearly contribution limit of $5,500 for those 50 and under, and $6,500 for those 50 or older.

Coverdell Education Savings Account (CESA)
This account can be used for all stages of a child’s education, including elementary and secondary education, and can be contributed to only until the child turns 18, unless the child is a special needs beneficiary. CESAs have a contribution limit of $2,000 per year, but come with added tax benefits.

There are a number of other options available to help cover the cost of higher education. Speak with one of our advisors to explore your options and determine what is best for you and your family.


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