Building a Plan to Afford College

To help you prepare for the cost of college, there are options to help you save. Planning ahead for college savings can keep you from resorting to using your retirement funds for education spending when the time comes. Here’s an overview of a few education funding options available to help you understand what option may be appropriate for you.

• 529 plans are offered by states, and contributions can come from anyone, including relatives and friends.
• Coverdell Education Savings Account Plans, unlike 529 plans, are owned by the child and can be used for qualifying education expenses including ones prior to college.  
• Uniform Transfer to Minors Act (UTMA)/Universal Gifts to Minors Act (UGMA) plans are plans that vary from state to state and are subject to taxes every year. These accounts are in a child’s name and the responsibility is on them to pay the taxes, though they are taxed at a lower rate. These are opened through a regular brokerage or mutual fund account.

It’s important to start the conversation today to see how all these college plans work with financial aid and how you still may qualify for assistance. Reach out today to conduct your planning discussion—let’s find the way together.

Investors should consider the investment objectives, risks, charges, and expenses associated with municipal fund securities before investing. This information is found in the issuer's official statement and should be read carefully before investing. Before investing in a 529 plan, you should carefully consider whether you or your beneficiary’s home state offers any state tax or other benefits. Any state-based benefit should be one of many appropriately weighted factors in making an investment decision. The investor should consult his or her financial or tax advisor before investing in any state's 529 plan.