Our team clearly recognizes the role education plays in your hopes for your children. After all, our advisors have all faced the task of planning for their own children's educations.
According to the College Board®, for the 2017/2018 school year, the average cost of one year at a four-year public college for in-state students is $25,290, while the average cost for one year at a four-year private college is $50,900.
While financial aid and scholarships can often supplement a portion of your child's college costs, student loans make up the largest percentage – usually more than half – of typical financial aid packages. The more you can help your children decrease their student loans, the less burden they will bear in their post-college years.
A variety of savings plans designed specifically for college funding are available. Our advisors can help you evaluate the tax implications and benefits of the various options as they apply to your particular situation.
*Some information on this page has been provided to us by Broadridge Investor Communication Solutions., an independent third party. Raymond James Financial Services, Inc. does not provide advice on tax, legal or mortgage issues. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. These matters should be discussed with the appropriate professional.
Disclosure: Earnings in 529 plans are not subject to federal tax, and in most cases, state tax, so long as you use withdrawals for eligible education expenses, such as tuition and room and board. However, if you withdraw money from a 529 plan and do not use it on an eligible education expense, you generally will be subject to income tax and an additional 10% federal tax penalty on earnings. Investors should consider before investing, whether the investor's or the designated beneficiary's home state offers state tax or other benefits only available for investments in such state's 529 savings plan. Such benefits include financial aid, scholarship funds, and protection from creditors. 529 plans offered outside their resident state may not provide the same tax benefits as those offered within their state.
For more information on these topics, contact us.
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