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Funding a child's college education is one of the largest purchases your family will make. Developing a plan to save for a child's college education can be overwhelming and complicated. With very few families able to pay for college expenses out of pocket, the planning and savings required to meet those costs should begin as early as possible. |
Our Infinex Financial Group Financial Advisor will meet with you and help you determine a savings plan that is right for you. Once he has a clear understanding of your specific needs, he can develop a realistic plan for you.
How Much Do I Need to Save?
The first step in the college planning process is to estimate the amount of monthly or annual savings required to pay for college. Our Financial Advisor can do this for you by using a financial calculator to determine the estimated total cost of college when the child is ready to begin and the periodic savings required to meet that amount.
Where Do I Invest My Money?
The next step is to decide where to invest the money. The decision here will depend on a range of factors such as the number of years until college begins, the amount of money available to invest, a family's income tax bracket, risk tolerance, and investment experience. Our Financial Advisor can help you determine the best products for you. He is an unbiased and objective resource that is uninfluenced by anything other than how to put all the elements of a successful plan together in a way that is best for you.
There are many savings vehicles available to you for college investing including:
529 Plans
These plans allow contributions to an account established to pay the student's 'qualified higher education expense.' Contributions are not tax deductible, but growth in an account is tax-deferred. If certain requirements are met, distributions to pay qualified higher expenses are excluded from income.
Coverdale Education Savings Account
(formerly known as Education IRA)
The Coverdale Account allows up to $2,000 a year to be contributed for an individual. Contributions are not tax-deductible, but growth is tax-deferred. Distributions are excluded from income if used for qualifying education expenses. Some restrictions apply.
UGMA (Uniform Gift to Minors Act)
Allows you to use a custodial account to save for college expenses under the child's tax identification number.
As you can see, the college planning process can seem complicated. Let our objective Investment Advisor help you to create a plan that works for you. Contact us today for a free, no obligation consultation.
Brian Allsop
Investment Executive
Infinex Financial Group located at Bank of Canton
Phone: (781)737-1918
Investment products and services are offered through INFINEX INVESTMENTS, Inc. Member FINRA/SIPC. Insurance products are offered through Infinex Insurance Agency of Massachusetts, Inc. Infinex and the bank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.