Education Planning

Many people make funding a child's education their priority here are the most commonly used techniques: 529 plans our state sponsored and allow the person funding the account to serve as it's custodian for the benefit of a minor. Contributions grow tax preferred and earnings may be tax free when used for qualified education expenses. One type of 529 plan allows for the pre-payment of tuition at today's rates. Another type allows for the accumulation of investment in mutual fund accounts - Post secondary qualified education expenses. 529 plans generally have high contribution levels Coverdell education savings accounts may be used for K through 12 as well as post-secondary educational expenses.

Uniform gift to minors accounts at the age of majority typically age 18 or 21 depending on your state the beneficiary becomes the legal owner of the account.

Cash value of life insurance permanent life insurance policies build cash value and can be a useful tool for educational funding:

  • United States savings bonds
  • Parents home equity
  • Student loans
  • Loans against 401(k) plan ROTH IRA distributions paid directly to educational institution
  • Part-time work

You’ll want to consider potential impact on financial aid opportunities. Work with our professionals to help you navigate toward an efficient plan. Putting off a half-day home improvement project is one thing… the project will take a half-day whenever you get around to doing it. Not so with planning for a future financial goal, like college tuition. With rising costs and less time, the problem becomes more difficult the longer you wait to start saving. Do what you can with whatever resources you have as soon as possible. Time can be your friend or foe!

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