Planning for a child’s future
Planning for a child’s future
Say you’re a young family. The day when your kids leave the nest is still a long way off, but you know it’s better to start planning sooner rather than later – especially when you have much more than college to plan for.
WE CAN HELP.
We’d start by helping you clearly define and order your priorities. For instance, if you place a high emphasis on college, that may come first followed by saving for retirement and your other long-term goals. Next, our team would help you develop a savings strategy centered on planning for education, which in the long run might require you and your spouse to work longer or delay retirement. Then we would help you examine the available options and open the accounts that best suit your purposes.
To learn more about how we help you plan for your child’s or grandchild’s future, contact us today.
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When you invest in potential, you’ll do more than help make the dream of education possible for a student in your life. You could provide the inspiration for a legacy of higher learning that’s passed on for generations to come. What’s more, the funds you contribute have the ability to grow tax-deferred, and eventually be withdrawn, tax-free.*
Working together, we choose the investment strategy that is right for you and your student, keeping in mind that generous contribution limits do exist, regardless of income level.
*Certain conditions may apply. Earnings in 529 plans are not subject to federal tax, and in most cases, state tax, so long as you use withdrawals for eligible education expenses, such as tuition and room and board. However, if you withdraw money from a 529 plan and do not use it on an eligible education expense, you generally will be subject to income tax and an additional 10% federal tax penalty on earnings. Investors should consider before investing, whether the investor’s or the designated beneficiary’s home state offers state tax or other benefits only available for investments in such state’s 529 savings plan. Such benefits include financial aid, scholarship funds, and protection from creditors. 529 plans offered outside their resident state may not provide the same tax benefits as those offered within their state.
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Although UGMA and UTMA accounts are not designed specifically for college savings, they offer advantages including multiple investment options, limited tax benefits and the ability for a parent to transfer assets to a child without needing to establish a more costly trust. However, contributions to the accounts are irrevocable and parents lose control of the funds when the child becomes 18 - 21 – an age that may vary by state. We help you navigate these considerations, providing solutions tailored to your funding needs.
