The options for funding college expenses have become more plentiful and complex over the years. Continually rising college costs complicate the issue, and increase the sheer challenge of accumulating an asset pool large enough to match looming education-related costs.
A Campus Consultants, Inc. study concluded that tuition, room and board at a public in-state college will be approximately $50,000 per year by 2030. Coverdell Education Savings Accounts (ESAs), and 529 Plans have both become popular in recent years, along with other options with varying degrees of tax benefit and flexibility of use.
As with other significant decisions, it’s important to begin with the philosophical and work toward the detailed in determining which account type and specific investments are appropriate for you. Once you’ve determined your desired destination, we can help you think through the strategies and implement a suitable plan, with consideration given to tax ramifications, ownership and custodial risks, flexibility of use, contribution restrictions and income limitations, and the actual investment choices available.
