Planning for a child’s future

Supporting a child’s education can be one of the most rewarding aspects of success and one of the most important elements in your financial plan. With rising inflation and the high cost of education, planning to contribute to another’s higher education may require an early start.

There are a variety of investment vehicles and tax-efficient options to contribute to the cost of higher education. As your trusted partner, our knowledge and professional guidance can help you analyze the tax benefits, ownership structure, risk and contribution limits involved – even what to do with your leftover education funds if your aspiring academic earns a scholarship.

• 529 College Savings Plan

  When you invest in potential, you’ll do more than help make the dream of education possible for a student in your life. You could provide the inspiration for a legacy of higher learning that’s passed on for generations to come. What’s more, the funds you contribute have the ability to grow tax-deferred, and eventually be withdrawn, tax-free.*
  
  Working together, we choose the investment strategy that is right for you and your student, keeping in mind that generous contribution limits do exist, regardless of income level.

• UGMA/UTMA Custodial Accounts

  Although UGMA and UTMA accounts are not designed specifically for college savings, they offer advantages including multiple investment options, limited tax benefits and the ability for a parent to transfer assets to a child without needing to establish a more costly trust. However, contributions to the accounts are irrevocable and parents lose control of the funds when the child becomes 18 - 21 – an age that may vary by state. We help you navigate these considerations, providing solutions tailored to your funding needs.

*Investors should consider the investment objectives, risks, charges, and expenses associated with 529 plans before investing. If you withdraw money for anything that doesn’t meet the qualified expense criteria, any part of the distribution that is made up of earnings on contributions will be taxed as ordinary income and could incur a 10% federal penalty.