Coming to a decision about which university your child will attend is a conversation you probably can’t wait to have. On the other hand, figuring out how you’re going to pay for that fine education is a discussion you’ll most likely want to avoid. But with a good plan in place, paying for your child’s college—and talking about it—will be much easier.
College Pays in Full, But You Don’t Have To
A college degree establishes credibility and strengthens core skills. The university experience helps your child establish a strong support network. Each day, your child will learn something new. However, many parents and their children are convinced to discount the advantages of a college education when faced with a hefty tuition bill. Your child’s grades, activities, and choice of major all become grounds for contention. You start to question whether the degree is actually worth it.
As you know, there are alternative means of paying for college, such as:
- Work-study or out-of-school employment
- Scholarships and grants
- Student loans
- Commuting to school instead of staying on campus
However, many of these options are less than ideal. For example, some scholarships are awarded by the university and can’t be used elsewhere. Additionally, loans carry extremely high-interest rates that even bankruptcy won’t eliminate. And while working part-time might build character, it also takes away from time your child could spend studying and networking with higher-level business people. But what else can you do?
Pay For Your Child’s Education Yourself, Kinda
An education savings account, such as a 529 Savings Plan, is a tax-advantaged investment account specifically designed to help you save for your child’s education and to reward you for doing so. All earnings in the account are tax-free when used for educational expenses, from elementary up to high school and beyond. This means that tuition and fees, books and supplies, room and board, and more can all be covered with the money you invest today.
Education savings accounts vary in terms of flexibility, actual ownership, and more. For example, the earnings in a 529 Savings Plan remain under the parent’s name and don’t have to be reported on your child’s FAFSA. With a 529, you also have the option to change the account beneficiary from one child to another. On the other hand, a UTMA/UGMA account provides neither of these benefits. These intricate details and more will be fully discussed with you when you visit Potter Financial. Your efforts to save money should make your life less stressful, not the opposite. We’ll help you choose the right savings accounts for your children, your needs, and your tax returns.
Invest In Your Child’s Future
Investing is one of the surest ways to accumulate more money with only the money you already have. Considering the risks inherent to the stock market, we know that’s a pretty bold statement to make. However, with the financial advisory and account management of Potter Financial, you stand a much greater chance of securing great savings for your child’s education. Our financial planners can help you:
- Assess your financial situation and goals
- Learn more about personal/family finance, education savings, and investing
- Open education savings accounts for your child(ren)
- Develop an investment strategy/portfolio that helps you achieve your financial goals
- Provide access to 1000’s of stocks/funds that individual investors can’t trade
- Oversee and manage your investments to maintain annual portfolio performance
- Manage and document eligible withdrawals
- Connect you with investment-savvy tax preparers
Schedule your free consultation at Potter Financial by giving us a call (713)-972-1316. When you invest, you’ll realize you have more money to contribute to your child’s future education than you previously thought. The bigger the savings, the brighter the future starts to look. Let’s develop a personalized financial plan and put it into action; it’s never too early or too late to invest in your child’s future with Potter Financial.
Investors should carefully consider investment objectives, risks, charges, and expenses. This and other important information is contained in the fund prospectuses, summary prospectuses and 529 Product Program Description, which can be obtained from a financial professional and should be read carefully before investing. Depending on your state of residence, there may be an in-state plan that offers tax and other benefits which may include financial aid, scholarship funds, and protection from creditors. Before investing in any state’s 529 plan, investors should consult a tax advisor. If withdrawals from 529 plans are used for purposes other than qualified education, the earnings will be subject to a 10% federal tax penalty in addition to federal and, if applicable, state income tax.