Next to saving for retirement, the biggest financial challenge is probably saving for your childs’ college education. We are aware of our clients’ concerns:
- How much should I save?
- How much should I contribute each year?
- How much will a college education cost when my child turns 18?
- What if my child gets a scholarship?
- What if my child decides to tour Europe instead of going to college?
- Can I cash out the account and take a dream vacation?
We empathize with these concerns and incorporate them into your overall financial plan. One way we implement education planning into your financial portfolio is assisting you in setting up a 529 College Savings Plan. These plans are a simple way to save money for your childs’ education and the following benefits are tremendous:
- You may avoid paying taxes on the accounts earnings.
- The child does not have control or access to the account – you do.
- If the child does not want to go to college, you can roll the account over to another family member.
- Anyone can contribute to the account.
- There are no income limitations that might make you ineligible for an account.
- If the child gets a scholarship, any unused money can be withdrawn without paying any penalty (just the tax).
- You may use money in 529 plans to pay for up to $10,000 in tuition expenses at elementary or secondary public, private or parochial schools on an annual basis - It is not just for college expenses.