Why Consider Education Savings?
Many parents in The Woodlands, TX know that they want to save for their child's education - but they don't know the best way to do it. Considering the rising costs of private school and college, knowing where to start, and whether it's even possible, isn't always straightforward.
Working with one of our financial advisors, you can get to grips with what you'll need to bring to the table in order to fund your child's private school or college. We can help you to work through the most important considerations, from deciding which schools to consider to how much school or college costs, how much of your child's expenses you want to cover, and what funds you need to put into your education savings account while working toward your financial goals.
Education Savings Accounts
There are several options out there when it comes to education savings accounts in the United States, and 529 education savings accounts are probably the type you've heard people claim to use the most. This flexible financial strategy is state-sponsored and lets you put money towards elementary, secondary and higher education expenses.
There are certain benefits to making a 529 education savings account (otherwise known as a 529 ESA), namely that any funds you contribute won't be taxed - though keep in mind that contributions aren't tax-deductible.
Another of the popular education savings account types is a Coverdell education savings account (Or Coverdell ESA). This option allows you to contribute funds for your child's educational needs with certain restrictions. You can't use a Coverdell education savings account if your annual gross income exceeds a certain figure, but, unlike the 529 ESA option, you have more flexibility to pick specific investments of your choice.
Education Savings With Koinonia Financial
No matter what your educational goals for yourself or your child, our team of professionals, based in The Woodlands, TX, can support your ESA decisions every step of the way. We can discuss all things fees, funds, and ESA savings options, helping you to make the smartest decisions for your child's educational future.
It may not be immediately obvious to you which of the types of ESA school or college savings plans are most suited to your personal family situation. There are different ESA options for different states, and what you read on the internet isn't always clear - or correct.
It's never too early to start thinking about how you'll pay for your child's tuition. The sooner you set up an ESA, the earlier you can start adding funds and taking those first steps towards your tuition finance goals. To learn more about how to pay into ESA plans, speak with one of our advisors in a consultation today.
Education Savings: Things to Consider Financial
Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.