Before your child was even born, you were planning. What will we name him? What color should we paint her room? What is the best childcare alternative?
But with all the demands and decisions that new parents face, one important aspect is often unintentionally overlooked in those early stages – college. However, with tuition rates rising, it should be at the top of every parent’s planning list no matter what the child’s age.
What’s more, saving for a child’s education doesn’t necessarily have to rest entirely with parents. With the flexibility and convenience of today’s savings plans, many alternatives make good sense for grandparents, aunts and uncles, other family members and friends.
You have big dreams for the child in your life. Don’t let a lack of planning sidetrack those aspirations. We’re here to assist. Our knowledge and professional guidance can help you give your child the opportunity for the bright future he or she deserves.
Start planning today
Although it is best to start the college investment process when your child is young, it is never too late to begin. No matter your child’s age, what’s important is that you plan now. It is easy to put off thinking about these expenses, hoping that your child will receive scholarships or financial aid. But don’t count on them. While these awards do help with college funding, they are not guaranteed, not always comprehensive and not available to everyone.
529 Plans, Coverdells, UTMA/UGMA accounts, even life insurance or your own retirement accounts are all options (with pros and cons) to helping fund an education. It can be complicated and overwhelming—that’s where our Advisors come in.
Which plan is right for you?
With many new college savings alternatives available, it is critical to build a plan that’s right for you. Building the wrong plan – or not investing properly within the right one – can prohibit you from maximizing your savings. However, together, we can build a plan that works: The things we’ll consider include:
- What are the tax benefits?
- Who controls the funds?
- How much risk is involved?
- Are there contribution limits that may hinder your ability to meet savings goals?
- Are large contributions subject to gift taxes?
- What investment options are available?