How To Start Saving for College

How To Start Saving for College

Tomorrow's college education requires careful planning today. It's never too early (or late) to begin preparing for this important time.

Published Tuesday, June 25, 2013

We all want the children we love to have a bright future, filled with promise, opportunity, and success. A college education is a key building block for that future.

Tomorrow's college education requires careful planning today. It's never too early (or late) to begin preparing for this important time in your kids' lives.

Below we've detailed a few easy ways to start.

529 Plans
A 529 Plan is an educational savings plan designed to help families set aside funds for future college costs. (529 stands for the Section of the IRS Code that created these plans.) There are two types of plans: prepaid and savings. Overall, the CollegeChoice Advisor 529 Savings Plan is smart, easy way to save, with a number of valuable benefits:

•Tax benefits to help your money go farther
•Affordable minimum contribution
•Flexible investment choices, including Year of Enrollment Portfolios
•Control over your assets
•Easy online enrollment and management
•Opportunities to enhance your college savings with UgiftSM and Upromise® rewards

Coverdell Education Savings (ESA)
The Coverdell Education Savings Account can likewise help you save money for your child(ren)’s education expenses. There is a $2,000 contribution limit per year for each child under 18. Similarly, it has great benefits:

•Contributions are not tax-deductible
•Withdrawals for qualified educational expenses are tax free
•Qualified expenses include tuition, fees, books, supplies, equipment, and, in some cases, room and board and computers

Talk to a financial advisor
Whether college is 5, 10, or even 17 years off, the future isn't that far away. Your financial advisor is one of your best resources, with insights to help you chart a course to achieving your goals; don't hesitate to ask him or her any questions you have about your college savings strategy. Set up an appointment with one of our financial advisors today!

By planning ahead, you can make paying for college a reality.

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