College Savings Plans
If you have grandchildren or children at home
you’d like to help with their college education,
it pays to start saving as early as possible.
The government has given us a tool that makes
saving for college a lot easier. The 529 college
savings plan is a great tax-advantaged program
to help you get a head start on your children’s
college costs.
There are two excellent options available
to help you save for college—the 529 college
savings plan and prepaid tuition plans. The
money you contribute to a 529 plan grows tax
free within your account and withdrawals from
the plan for qualified educational expenses
are exempt from federal taxes.
You might also consider a prepaid tuition
plan. These are offered primarily by state colleges
and universities to help you lock in today’s
prices for tomorrow’s tuition costs. They allow
you to pay tuition in advance to cover your
child’s fees and expenses.
With prepaid tuition plans, your concern might
be that your child may decide on a college in
a different state. Fortunately, these plans
allow you to transfer the value to out-of-state
public and private colleges.
Don’t wait too long to start your college
savings plan. Talk to your financial advisor
about setting up a savings plan for you to ensure
that your children or grandchildren have the
resources they need to get a college education.
Covering your back
No matter how well we plan, unexpected adversity
can take us off track. That’s why it’s vital
to include risk management as part of your financial
planning process.
It’s important to review your insurance coverage
from time to time to make sure that you and
your family are adequately covered to get you
through difficult times. Do you have sufficient
life, health and disability insurance? Does
your homeowner’s insurance policy provide enough
coverage to protect you from law suits that
may result from mishaps at your home?
Find out if you have the coverage you need
to make it through your difficult times. For
your own peace of mind and the financial security
of your family, take some time now to sit down
with your financial advisor and review your
insurance coverage.
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