A South West Houston 529 Plan is just what you need if you want to save more money for your child’s education. A 529 Plan in itself is great, combining that with Potter Financial’s local financial services is even better. When it’s time to pay for your child’s educational expenses, you’ll be more prepared than ever. Keep reading to learn more about our financial services and how we can help you pay your child’s college tuition.
What is a South West Houston 529 Plan?
A 529 Plan is a type of investment account specifically designed for education savings. As such, the only tax-free withdrawals allowed are those for educational expenses. But if you’re interested in saving and paying for college, this shouldn’t be a deterrent for you. In fact, using this type of account can actually help you save more money. You’re less likely to take out money for unrelated expenses. Instead, you’ll look for another way to get the money you need without sacrificing your child’s savings. Of course, Potter Financial can help you save for other areas of your life as well. Hopefully, with our help, the question of “where’s the money going to come from?” won’t be a question you have to ask at all.
Through searching around, you may have noticed that there are a few other types of accounts that you can use to save for your child’s education. At Potter Financial, we’ll discuss how these accounts compare to the 529 Plan. In the end, we’ll go with whichever account we both agree is best for your family. In most cases, we’ve found that to be the 529 Savings Plan. The flexibility afforded to parents by this type of account tends to outweigh the benefits that others could provide. On the other hand, the other educational savings accounts can benefit account-creators who want to pass on the greatest control to the child (the custodian in those cases).
What’s the Difference?
With a 529 College Savings Plan, your child is a beneficiary, not a custodian. That means that you can change the beneficiary (i.e., who’s entitled to the money). If your child were to be made a custodian, as would be the case for some of the other educational accounts), that money would be theirs, legally. When they become a legal adult, they can do with the money what they choose.
As you can see, these other “education” savings options are more like irrevocable trusts. This may benefit you if you don’t have a problem with your child spending the money as they see fit (which may or may not include educational expenses). Furthermore, these accounts allow you to spend money on things for your child other than educational expenses. If your child isn’t academically inclined, you might prefer to open one of these accounts. In sum, the financial planners at Potter Financial will help you determine the best account for each of your children.
How To Save
In addition to determining the best education savings account for you (likely the 529 Plan if you want to save for your child’s schooling), Potter Financial can actually help you save. One of our key financial services is financial planning. With a financial plan, you’re better prepared to put your best foot forward when it comes to saving for your child’s future. Often parents don’t save enough, not because of income, but because they don’t realize how much they can save. A solid financial plan can help you better see what you have to save and how much you can afford to set aside.
Once we’ve identified a comfortable amount of savings, we can also help you figure out what to do with that money. A 529 Savings Plan is, at its heart, an investment account. That means that the wisest thing to do with those deposits is to invest in marketable securities. Of course, that’s easier said than done. The stocks and securities you choose to invest in can have a big impact on your investment account balance. Fortunately, our account managers can help.
Potter Financial’s account managers can build your portfolio with a range of stocks and other securities. In many cases, mutual funds are great investment options. A good mutual fund offers adequate diversification in regards to both industry exposure and the type of securities. Additionally, mutual funds tend to show consistent returns. Of course, our advisors will manage these funds for you to make sure your funds are handled by experienced and capable hands.
Other Ways To Save
The great thing about the financial professionals at Potter Financial is that we don’t just specialize in one type of account. Just as easily as you can open or manage a 529 Savings Plan with us, you can do the same with practically any other investment account. This includes standard accounts, personal retirement accounts, and employer-sponsored retirement accounts. We can also transfer or rollover your accounts if needed. With Potter Financial, you’re offered the opportunity to transform your financial standing. Let’s start with an assessment, create a plan, and take it from there.
As you know, there are other ways to pay for your child’s education. Loans, scholarships, grants, work-study, and more are all options. In much the same way, you have choices when it comes to retirement. Social security, pensions, or working later in life are all potentially available to you. However, in either case, nothing can quite compare to saving the money you need yourself. Your own savings come with no strings attached. No rules. No debts.
Call Us Today!
Potter Financial can help you save more for your children and for yourself. Call us today or contact us online to get started with a South West Houston 529 Plan, retirement account, or whatever else you need to get on the road to financial freedom. You can reach us by calling (713) 972-1316. You’ll find that we have the tools you need to help you get where you need to go. Moreover, you can learn more about how our services can help you by clicking here.
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