If you want to open a South West Houston 529 College Fund, Potter Financial is happy to help. We’re a financial planning firm with the resources to actually open and manage your investment accounts, including the 529 Savings Plan. When you work with Potter Financial, you reap the benefit that a clear vision provides. With a financial plan, you can make better financial decisions. That means that you can more accurately prepare for your family’s future. Because each family is unique, its practically impossible to give any sound investment advice in this article, if you want personalized suggestions, give us a call and schedule your appointment with Potter Financial. In this article, we’ll tell you more about the 529 Savings Plan, a great way to plan for your child’s college expenses. If you ever want to learn more about our wide range of services, contact us at your earliest convenience.
What is a 529 College Fund?
A 529 account may be referred to by a variety of names: 529 Savings Plan, 529 College Savings Plan, etc. Nevertheless, the account functions the same. This type of account is designed to help people save more money for educational expenses. As we’ll explore in more detail below, the 529 savings account isn’t so much focused on who the money is saved for. However, the regulations are pretty specific regarding the type of expenses that qualify.
The money from a 529 College Fund can only be used to pay for educational expenses, as defined by regulations. Therefore, it’s always best to make sure that your withdrawal is permitted, based on what you intend to spend it on. Otherwise, you’ll be hit with a hefty tax penalty. For those qualifying expenses, the withdrawals are tax-free. In a way, you’re rewarded for saving money—as long as you use it for the right reasons.
However, the term “529 College Fund” is a bit of a misnomer. When parents open these accounts for their children, they typically assume the money that they save can only be used for college expenses. However, the money in a 529 Savings Plan can actually be used at any level of education. From grade school up to grad school, you can withdraw funds to pay for those qualifying expenses. Of course, many people choose to forego those withdrawals until college. In any case, that’s not the rule, though it is a pretty smart strategy.
Do You Need A South West Houston 529 College Fund Firm?
Firstly, it’s important to note that Potter Financial provides more financial services than opening educational accounts. Our other services include financial planning (including retirement planning) and investment account management. In fact, these services may prove quite useful to you as you commit to saving more money for your child’s higher education.
Even if all you intend to do is open a 529 find for your child, you benefit greatly from doing so with the help of a firm. While it can be tempting just to open an account online, you won’t receive much assistance that way. On the other hand, Potter Financial can actually offer you investment advice and even total account management, if you prefer. You may be surprised at how much more difficult it is to save when you don’t have this sort of help. Even if you’re not new to investing, staying on top of stock market news can be time-consuming. On top of that, you have to make sure not to get too personally involved. Easier said than done! Fortunately, Potter Financial can help reduce the likelihood that you’ll sell all your shares before you should.
Even before we get into investing, enlisting the help of a local firm can ensure that you’re making a wise decision. We’ll make sure that your education savings account is a comprehensive option for your family. Assessing things such as your child’s actually interest in school, your financial situation, and more may point us in a different direction. A 529 Savings Plan is a great option for saving money for your child. However, it’s not the only option. We’ll make sure that it’s the best option for you if we go that route.
How Should You Save?
The first step to really saving the most that you can for your child’s education is to choose the best investment account for that purpose. As discussed above, Potter Financial can help with that. But we can also take it one step further. By assessing your finances as well as your financial risk tolerance, we can identify the best investments for your money.
Mutual funds are a managed security comprised of any combination of marketable assets. For example, a single mutual fund may include individual stocks, bonds, cash, debts, and real estate. As you can see, if one market starts to slump, your portfolio can still be covered by the other securities. Besides, because mutual funds are managed by financial analysts, you can rely on their experience and foresight. They’re as, if not more, invested in the success of the mutual fund. You can use this to your advantage. By investing in mutual funds, you essentially pay the fund manager to manage your portfolio for you. This saves you a lot of time and effort. Plus, with the account managers at Potter Financial managing your managed mutual funds, you’ll have more than one set of eyes on your investment.
Potter Financial offers you access to mutual funds and other securities that an individual investor wouldn’t be able to invest in. If you want to create a well-performing portfolio for your South West Houston 529 College Fund, consider calling Potter Financial or contacting us online. You can reach us by calling (713) 972-1316. Moreover, you can click here to learn more about how our financial services can help you. During our free initial consultation, we’ll let you know what the best course of action take according to your current financial situation and standing. Above all, we’ll use our vast experience and knowledge to help guide you on your quest to saving for your child’s higher education.
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