529 Savings Plans
If you have a desire to fund your child’s education, you may have already begun looking at opening a 529 college savings plan account.
A 529 plan, or a qualified tuition plan, provides you with a tax-advantaged method to save for your child’s college education.
529 College Savings Plans
Every state has its own 529 plan with a wide variety of unique benefits, and you can choose with which state you want to open your account.
Prepaid Tuition: This plan allows you to pay for your child’s future tuition at today’s costs. With a prepaid tuition 529, you can buy credits at participating colleges or universities today that will go towards your child’s future education expenses. This option will utilize the money you contribute towards all costs except room and board.
College Savings Plan: Through this 529 option, you open an investment account for your child, allowing you to invest for any university or college that your child may choose. This plan also allows you to utilize the earnings to pay for all educational expenses including room and board.
529 plans have advantages and disadvantages. You will want to discuss these with your financial advisor and decide your approach to saving college tuition that is aligned with your financial plan.
Talk with an EWM advisor about your college funding goals, contact us today!