A college education can set your children or grandchildren on the path to a bright future. The key to providing the financing for this future lies in early planning. The earlier you define a savings strategy, the better you’ll be when taking advantage of compounding returns. However, it’s never too late to begin investing in your child’s future college education. The key to your success is to have a solid and sustainable plan. While everyone believes that their child will receive a scholarship or qualify for financial aid, the reality is that neither are a solution. Many students will not qualify and if they do receive aid or a scholarship, it may not cover all education expenses.
There are many options to consider when selecting a college savings plan. It’s important that you select one that precisely fits your needs and adequately covers your child's educational dreams. Here a just a few items to consider before choosing a plan.
- What are the plan’s tax benefits?
- What risks are in included in the plan?
- Does the plan have any contribution limits?
- What investment options are available?
- Does the plan have annual income eligibility limits?
- How much flexibility does the plan have?
The team at CrossleyShear Wealth Management can help you with a broad range of investment vehicles such as Coverdell Education Savings Accounts, 529 college savings plans and specialized trust vehicles.
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.