. These Now that schools on the traditional track are back in session, it is a good time to consider how to fund college for your children. There are a few different ways to save for college. One of the best is the 529 plan.
Established in 1996 under the Small Business Job Protection Act, this plan allows savings for college with a tax advantage. Using this plan families can save for future educational expenses. You are allowed up to $14,000 per beneficiary.
You can use one of two types of plans. Prepaid tuition plans for participating colleges and universities can be applied to future tuition and mandatory fees. These may apply at their current price for the future student. You cannot use these for room and board or for elementary or secondary schools. You must also be aware of other restrictions. Educational savings plans provide an opportunity to open an investment account to save for future educational needs. You can withdraw from this account to use at most colleges and universities as well as elementary and secondary institutions.
What are you doing today to prepare for your family’s educational future? This is one of the areas where a Certified Financial Planner (CFP) can help. This type of savings should be part of your overall fiscal plan.
As you get the kids off to school, it might be a good idea to review your plans for financing their education from now until graduation and college, university or other education. Investments in your children’s education can be one of the best return on investments that you can make for them.
Les Merritt has helped many families with their planning for decades. He is available to help you and your relatives as well. Contact Les and his staff at (919) 269-8553 to set an appointment to secure your children’s future and fund college for your children.