College education financial planning is the process of determining how much money you will need to pay for college and how you will pay for it. It is important to start planning early.
Financial planning strategies may include:
529 plans. A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. Earnings on investments in a 529 plan grow tax-deferred, and withdrawals are tax-free when used to pay for qualified education expenses.
Coverdell Education Savings Accounts (ESAs). A Coverdell ESA is another tax-advantaged savings plan designed to encourage saving for future education costs. Earnings on investments in a Coverdell ESA grow tax-deferred, and withdrawals are tax-free when used to pay for qualified education expenses.
Trusts and Accounts designed to help pay for a college education. Recoup the investment if your child or grandchild decides not go to college.
Use the funds for a younger child or grandchild who will go to college after your older child decides not to attend.
Scholarships. Scholarships are free money that can be used to pay for college. There are many different types of scholarships available, so it’s important to do your research and find scholarships that you’re eligible for.
Grants. Grants are also free money that can be used to pay for college. Grants are awarded based on financial need,.
Loans. Loans are a way to borrow money to pay for college. Loans have to be repaid, so they should be used as a last resort.
There is no one-size-fits-all approach to Education Planning. The best strategy for you will depend on your individual circumstances.
Schedule a no cost initial consultation so we can help you pay for your son’s, daughter’s or your grandchild’s College Education on our Request a Consultation page at https://www.theinvestmentadvisor.net/request-consultation… or call 877-414-9021