As the cost of a college education continues to rise, it is more important than ever to plan as early as possible. For people starting a college savings plan today, questions arise as to what is the best vehicle and how much should I save. Thrive can help by factoring this important goal into your comprehensive financial plan. We'll work with you to identify the appropriate vehicle(s) and savings rates for your specific goals.
Depending on your unique situation, here are common funding vehicles:
- 529 Plan
- Coverdell Education Savings Plan
- UTMA Accounts
- U.S. Savings Bonds
- Home Equity
When saving for college, special consideration should be given to future eligibility for financial aid. Most needs based financial aid programs base eligibility on the amount of assets that are owned by the child. Generally, assets that are owned by the parents are not considered for financial aid eligibility. If assets are held in the child’s name, or in a trust for the child, they could negatively impact eligibility.
To learn more about Saving For College, please contact us today!
Not all services will be appropriate or necessary for all clients, and the potential value and benefit of the adviser’s services will vary based upon a variety of factors, such as the client’s investment and financial circumstances and overall objectives. Neither personalized services nor the scope or nature of financial planning should be construed as guarantees of a particular outcome. Clients are free to accept or reject any planning recommendations provided by Thrive and may choose to implement accepted recommendations with the professional(s) of the client’s choosing. The effectiveness and potential success of adviser’s services can depend on a variety of factors, including but not limited to the manner and timing of implementation, coordination with the client and the client’s other engaged professionals, and market conditions. Past performance does not guarantee future results. All investing comes with risk, including risk of loss.