Saving for College—Investing in Education in Riverton, WY
Saving for College
Whether you're saving to help a child (or several) attend college in the future, or you're wanting to continue your own education, investing in education takes planning and forethought. While college can be a big expense, it can also pay off in the long run when it comes to both a future career and earning potential. In many cases, saving for college just makes sense.
Most of the time, we talk to people who want to help their children or grandchildren set aside money to help fund their education. Parenting takes love and smarts. It shouldn’t take a degree in economics to save for your child’s education. That’s where we come in.
One of the most effective ways to save for your child's college is with a 529 savings plan. With a 529 savings plan, your earnings are tax-deferred and then become tax-free if they're used for qualified educational expenses. A 529 savings plan can now be used for elementary and secondary school expenses as well. As an added bonus, there are additional advantages if grandparents establish a 529.
Another option is to go with a Coverdell Education Savings Account. With this type of account, your earnings grow tax-deferred and become tax-free if used for education expenses, similarly to the 529. However, unlike the 529, your contributions could also be tax-free. Call us for the details and limits on both of these types of accounts. We would be happy to discuss them with you and assist you as you're making education plans for the future.
If you don’t want your gifts to be limited to education expenses, then a UGMA/UTMA account might be the answer for you. Together, we can explore all the many options available to you so that you can make the best decision when it comes to funding an education.
In any case, parents or grandparents who want to give children a head start towards a better life should give us a call! We will help you choose the education savings plan that is right for you.
*The fees, expenses, and features of 529 plans can vary from state to state. 529 plans involve investment risk, including the possible loss of funds. There is no guarantee that a college-funding goal will be met. In order to be federally tax-free, earnings must be used to pay for qualified higher education expenses. The earnings portion of a nonqualified withdrawal will be subject to ordinary income tax at the recipient’s marginal rate and subject to a 10-percent penalty. By investing in a plan outside your state of residence, you may lose any state tax benefits. 529 plans are subject to enrollment, maintenance, and administration/management fees and expenses