College Planning
As we already know college costs continue to rise. The time is now to develop a financial plan for future funding of college expenses. Talk to a Brighton Securities financial advisor about the different savings vehicles such as: 529 college savings plans, Coverdell Education Savings Accounts, custodial accounts and regular brokerage accounts that may aid in the achievement of your college planning goals.
529 Savings Plan
- Higher education savings plan.
- Earnings and withdrawals are tax-free for higher education.
- Contributions up to $12,000 a year ($24,000 for couples) or accelerate up to five years’ worth of contributions ($60,000 or $120,000 for couples) without gift-tax consequences.
- You may qualify for a New York State tax deduction of up to $5,000 ($10,000 for married couples) for contributions to a plan.
Please Note: If your state or your designated Beneficiary's state offers a 529 plan you may want to consider what, if any, potential state income tax or other benefits it offers, before investing. State tax or other benefits should be one of many factors to be considered prior to making an investment decision. Please consult with your financial, tax or other advisor about how these state benefits, if any, may apply to your specific circumstances. You may also contact your state 529 plan or any other 529 college savings plan to learn more about their features. Please contact your financial consultant to obtain a Plan Disclosure Document or prospectus for any of the underlying funds. The Plan Disclosure Document contains details on investment objectives, risks, fees, charges and expenses, as well as more information about municipal fund securities and the underlying investment companies that should be considered before investing. Please read the Plan Disclosure Document carefully prior to investing.
An investor should consider the investment objectives, risks, and charges and expenses associated with municipal fund securities before investing.
Investment returns are not guaranteed and you could lose money by investing in the plan.
Coverdell Education Savings Accounts (formerly known as Education IRA)
- Contributions up to $2,000 per child per year.
- For educational expenses from kindergarten through graduate school.
- Investors can also contribute to a 529 Plan in the same year.
Tax-advantaged strategies are important because you can potentially accumulate more money with a tax-advantaged investment compared to a taxable investment. Ideally, you will want to choose a savings vehicle that offers you the best combination of tax advantages and financial aid benefits while still meeting your overall investment needs. Balancing these goals can be a challenge.
How prepared are you to send your children to college?
Brighton Securities offers many options to help you achieve your college planning goals.
