College Planning
RETIREMENT PLANNING – COLLEGE PLANNING – LEGACY PLANNING – DEBT MANAGEMENT
While college education cost is outpacing inflation, without proper planning it will be challenging for our children to pursue education that they deserve. A 529 Plan is one of the most efficient ways to save for college featuring tax-advantaged growth and tax-free withdrawals for higher educational expenses.
These plans can be used not only by parents but by anyone who is considering gifting money to a loved one for higher education. 529 plans can be used for estate planning purposes as well. We will help you navigate a complex 529 plans’ world, explain the rules, restrictions and flexibility and set up a 529 account for your child or grand child, guide you through investments and distributions*.
In addition to a 529 plan, a Coverdell, or an Educational IRA, may be considered. However, due to contribution limitations they have become much less popular and many might consider rolling over the funds from these accounts into a 529 plan. We can help you evaluate your existing Educational IRA and look at all of your options including but not limited to a 529 plan.
Did you know how you could use Life Insurance policy to pay for college? If you have a whole or variable life insurance policy, you can borrow from, withdraw against, or even cash out the policy to meet college costs. These withdrawals can be tax free if certain rules are met.
Planning for college should start early. The earlier you start – the better outcome you can anticipate. Please talk to us as soon as a child is born!
Although plans are established and maintained by states, the states do not provide guarantees against investment loss, except in certain very limited cases. As with any investment in a mutual fund or other equity security, an investment in a 529 college savings plan can decrease in value. Earnings on a distribution not used for qualified expenses may be subject to income taxes and a 10% federal penalty. Please note that the availability of tax or other benefits may be conditioned on meeting certain requirements such as residency, purpose for or timing of distributions or other factors as applicable.
Securities and advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. The LPL Financial registered representative(s) associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.
LPL Financial Form CRS