Education Planning

With the rising costs of education outpacing inflation, many accumulate large amounts of student debt to fund their higher education needs. There is no better time than now to begin planning for these expenses. An experienced financial planner can assist you in determining the proper education savings account to work towards your goals.

Education Planning covers a wide array of meanings for our clients. From private or religious school to higher education such as college or graduate school, the rising costs to fund a student’s attending these institutions can put a considerable financial strain on your family. With enough time to plan for these expenses, we can potentially negate the need for student loans or debt accumulation.

Our list of potential Funding Strategies is here to provide insight into the detail we go into for our clients based on suitability, among many other factors.

  1. Funding Years
    • UGMA/UTMA: under age 24, subject to the kiddie tax
    • Series EE/I Education Bonds: Parents own, not suitable for UGMA/UTMA, potential to be Federally Tax-Free
    • Coverdell Education Savings Plan (ESA): Income and contribution limits apply.
    • Qualified Tuition Plans (i.e., 529 Plans): College savings or Pre-paid tuition plans may contribute a 5-year allowable contribution in a lump sum (subject to rules)
  2. College Years
    • Utilizing potential Grants/Loans, Tax Credits (American Opportunity Credit, Lifetime Learning Credit), Education Account distributions, Gifts, Earnings, UGMA/UTMA, and 2503(c) Trusts.
      • Subject to coordination rules, tax situation, income, etc.
  3. Graduate Years
    • Fulbright Scholarship
    • Stafford Loan
    • 529 Plan or ESA Distribution (subject to coordination rules)

It is never better to start planning for your child’s future now. With the rising costs for tuition, room & board, books, etc., contact us today to discuss your options.

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