If you are looking for help with college planning, scheduling an appointment with our team of Spokane Financial Advisors is a good first step. College costs are rising at 4% annually, and the price tag for a four-year education can top $360,000 for a private school and $180,000 for a public school.
However, there are strategies that can help make college more affordable. Our team of Spokane Financial Advisors can help you understand the options and make a plan that fits your budget.
If you're looking to start saving for a college education, there are a few things you should know. There are many different types of savings vehicles available, each with its own set of tax benefits and consequences, financial aid implications, contribution limits, and asset flexibility. Here are a couple options:
529 Plans
One of the primary advantages of a 529 plan is the lack of taxes on the non-deductible contributions. The money saved in this account can grow tax-deferred, and when it comes time for distributions to be made in order to pay for qualified educational expenses, the distribution is free of federal taxes. This makes 529 plans a great tool for those looking to save for their children's education.
Coverdell Education Savings Account
This type of account allows you to contribute up to $2,000 per year per beneficiary, and earnings can be withdrawn tax-free for qualified educational expenses. Coverdell accounts are an ideal way to save for primary and secondary education at private schools. If you're interested in learning more about this savings option, please contact us to schedule an appointment with one of our Financial Planners. We would be happy to help you explore your college savings options and create a plan that meets your unique needs.
If you're looking to secure your child's educational future, the most important thing you can do is start planning today. And there's no better way to get started than by meeting with our team of Spokane Financial Advisors.
We'll work with you to develop a personalized plan that takes into account your unique circumstances and family goals.
Ready to take the next step?Schedule a FREE consultation with us. We want to learn about you and your unique situation and goals. Together we will develop a financial path that’s tailored to your specific needs! |
Prior to investing in a 529 Plan investors should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult your tax advisor before investing.
