Knitting a safety net for THE NEXT GENERATION
After serving their mother for many years, Clara and her husband, John, became our clients. They needed help mapping out a plan for their financial future – something that had been on their minds for some time but they were always too busy to address.
With three kids, two high-profile jobs and one blended family, Clara and John were dealing with a few complex financial matters. Their most pressing need was for a safety net for their children, should something happen to them. A life insurance trust was created that would provide income for their children until they completed college and could ultimately provide for themselves.
UTMA accounts had been created by Clara’s mother several years before to help with future college costs; however, we supplemented those accounts by establishing 529 plans for each of the three children to make sure they could finish four years of college debt-free.
Finally, a complete investment and estate plan was designed and implemented to give them a roadmap to fund their retirement plans as well as build a legacy for future generations.
We look forward to serving them through whatever milestones they encounter in life.
The hypothetical example above is for illustrative purposes and is not representative of any actual experience. Individual results will vary. As with other investments, there are generally fees and expenses associated with participation in a 529 plan. There is also a risk that these plans may lose money or not perform well enough to cover college costs as anticipated. Most states offer their own 529 programs, which may provide advantages and benefits exclusively for their residents. The tax implications can vary significantly from state to state.