Education

On average, a person who receives a college education earns about 89% more than one who does not.*

*Source: U.S. Census Bureau, March 2002 Current Population Survey, Income Statistics Branch/HHES Division, U.S. Department of Commerce, Washington, D.C.

In light of rising higher education costs, it's important to have a savings plan in place that accounts for inflation and future expenses. Currently, there is a new tax law with some very beneficial provisions for higher education savings. There are two great alternatives available made more attractive by this law: education savings plans (formerly called education IRAs) and 529 plans.

In our view, everyone who is saving for children’s or grandchildren’s education expenses should consider using one or both of these alternatives. Of course, we understand that everyone’s individual situation is different. By working with you, we will tailor an education savings plan that takes all of your circumstances into consideration.

For information about our education planning services, please contact us today. Also check out these links:

• 529 plans: Recent changes in law make these plans even more attractive,
• 529 savings plans can help fund higher learning,
• 529 savings plans: A flexible way to save for higher education,
• An Education in Savings: The Coverdell ESA,
• Teaching Kids about Money: Why It's Not Just Fun and Games, and
• Coverdell Education Savings Accounts (PDF).

Investors should carefully consider the investment objectives, risks, charges and expenses associated with 529 plans before investing. This and other information about 529 plans is available in the issuer's official statement and should be read carefully before investing.

Favorable state tax treatment for investing in a 529 college savings plan may be limited to investments made in a 529 plan offered by an investors home state. Investors should consult a tax advisor about any state tax consequences of an investment in a 529 plan.