Saving for education expenses is one of the most common financial goals we help our clients pursue. College is often considered a necessary step to achieving career goals and obtaining financial success. But it is also a significant investment. Fulfilling your desire to provide your loved ones with a college education can require a proactive approach to saving.
Our financial planners will help you create a savings strategy that works within your comprehensive financial plan, to ensure you remain on track to achieving your financial independence, while helping your kids get started on their own path to financial wellness. Our goal is to help you empower your children to achieve their ambitions through proactive education planning.
529 plans are tax-advantaged investment accounts specifically designed for education savings. 529 plans can be used at accredited institutions from the elementary through college level for:
- Approved study equipment
- Room and board
529 plan accounts do not expire, so unused assets can be passed down to future generations. And, there are no federal or state income taxes (in most states) on the distributions, including the earnings, as long as the assets are used to pay for qualified education expenses.
Not all 529 plans are the same. At Affiance Financial, we evaluate specific plans based on their longevity, reputation, investment options – including customized options – and fees. Based on these criteria, we make a recommendation for your college savings needs.
Choosing to have Affiance Financial manage your 529 plan means that your education savings account will receive the same high level of customer service that our team provides for all of your investment accounts. And it provides your financial planner insight into your complete financial picture, which allows for a truly comprehensive financial planning experience.
Other Education Planning Options
529 plans are the most popular education planning tool, but they are not the only option for saving for a child’s future. Depending on the unique needs and goals of your family, your financial planner may recommend:
- UTMA or UGMA account – a taxable investment account set up for a minor, but controlled by an adult
- Coverdell Education Savings Account (ESA) – a tax-advantaged trust or investment account used for saving for education expenses
Each of these options has its own set of benefits and restrictions. Our knowledgeable financial planners will recommend the option best suited to your financial goals.
An Individualized Approach to Education Planning
You deserve education planning services that are tailored to you and your children or grandchildren. Affiance Financial provides a proactive approach to education savings. Being proactive in your approach and regularly reassessing your plan will help you stay on track to achieving your goal of providing a quality education for your loved ones.
We know how intimidating – and expensive – the college journey can be. But we also know how important it can be. That’s why we're committed to helping families make their higher education goals a reality. Contact us today to learn more about how Affiance Financial can help you reach your education planning goals.
The views represented are not meant to be construed as advice. Moreover, no client or prospective client should assume that this content serves as the receipt of, or a substitute for, personalized advice from Affiance Financial, or from any other professional. Please remember to contact Affiance Financial if there are any changes in your personal/financial situation or investment objectives.
This webpage is being provided for informational purposes only. It is not intended to provide specific tax advice. For specific tax advice, the services of an accountant should be sought. Affiance Financial does not serve as an accountant and does not prepare tax returns.
All investment strategies have the potential for profit or loss.