2Q2019 | 30-49yrs
Two Reasons to Save for College
1) The cost of not going to college is greater than ever. For the past 50 years the pay gap between those that have earned at least a bachelor degree and those who didn’t is wider.
2) College costs are rising faster than inflation and student loan debt has ballooned.
529 College Savings Plan Benefits:
1) Anyone can put money into the fund for your child – parents, grandparents, aunts, uncles, friends etc.
2) You can use the funds at any accredited college nationwide.
3) You have control of the account unlike with UGMA\UTMA accounts, you retain control over withdrawals for the life of the account. You can even change beneficiaries to another family member if your child decides not to attend college or there is money left over.
4) You can fund monthly or in lump sum. You can do a 5 year accelerated contribution of $70,000 for singles and $140,000 for a couple. Grandparents\Aunts\uncles can fund a education legacy for multiple generations since you retain control of the beneficiaries.
Your account can accumulate tax free, plus you pay no federal income taxes on your earnings when you withdraw the money to pay for qualified college expenses.
Different states have different programs so please consult your advisor and pick the option that works for your specific situation.
For more information, please contact your QPA Financial Advisor.
Advisory services offered through Prime Capital Investment Advisors, LLC. (“PCIA”), a Registered Investment Adviser. PCIA: 6201 College Blvd., 7th Floor, Overland Park, KS 66211. PCIA doing business as Qualified Plan Advisors (“QPA”).
This commentary is provided for information purposes only and does not pertain to any security product or service and is not an offer or solicitation of an offer to buy or sell any product or service.