It Is Never Too Early To Begin Saving for Your Child's Education

Our financial professionals can set up a plan that works for you and your family. Considering all the factors, how many years there are to plan, what is the goal for the fund, which type of college, living on or off campus, possibility of a Master’s degree or PhD.

529 College Savings Plans

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future college costs. 529 plans, legally known as “qualified tuition plans,” are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code, and can be utilized for eligible college costs.

529 Saving Plans

College savings plans generally permit a college saver (also called the “account holder”) to establish an account for a student (the “beneficiary”) for the purpose of paying the beneficiary’s eligible college expenses. An account holder may typically choose among several investment options for his or her contributions, which the college savings plan invests on behalf of the account holder. Investment options often include stock investments, bond investments, and money market investments, as well as, age-based portfolios that automatically shift toward more conservative investments as the beneficiary gets closer to college age. Withdrawals from college savings plans can generally be used at any college or university, and beneficiaries can be changed if there is a surplus of funds.

529 Prepaid Plans

Pre-paid tuition plans generally allow college savers to purchase units or credits at participating colleges and universities for future tuition and, in some cases, room and board. Most prepaid tuition plans are sponsored by state governments and have residency requirements. Many state governments guarantee investments in pre-paid tuition plans that they sponsor.

Choosing A Plan That Is Right for You

There are so many factors in deciding the best direction for your family’s education and we can help navigate that path with you. And when there are changes we can assist with that as well.

Saving for An Older Child's Education

Better late than never! Let go of any worry and guilt, and let’s get you started! There are plenty of reasons for not starting a plan when children are young, but we can help you find a plan that will enhance returns for the limited time you have to save.

As with other investments, there are generally fees and expenses associated with participation in a 529 plan. There is also a risk that these plans may lose money or not perform well enough to cover college costs as anticipated. Most states offer their own 529 programs, which may provide advantages and benefits exclusively for their residents. The tax implications can vary significantly from state to state.