Services ~ Education Planning

Choose effective education planning strategies

With the cost of a college education rising faster than inflation, planning early and utilizing appropriate investment and savings vehicles is critical to being ready when college bills come due. Just as no two students are alike, no two parents are alike when it comes to preparing for college expenses.

At Ames Planning, we help you wade through the myriad of funding options to select an education planning strategy that works best for your situation. Whether you are able to develop a college funding plan early or begin the process later, we break down the benefits of each option to help simplify your decision-making.

Make the right college funding choices

With many education funding vehicles to choose from, selecting the right ones can be challenging. We help you weigh the advantages of:

• State-administered 529 college savings plans that can offer tax-deferred growth and no income restrictions
• Uniform Transfer to Minors Act (UTMA) accounts that allow parents and grandparents to transfer ownership of assets to minor children
• Pre-paid state college tuition plans that freeze costs at current rates
• Coverdell education savings accounts with tax-exempt earnings
• U.S. savings bonds free of federal tax if spent on college expenses
• Taxable investments and potential gifting of assets when college payments are due
• CDs, savings accounts and short-term bonds for funds needed for college within a few years

Other college funding options to consider are school and federally backed loan programs, home equity loans and personal loans. Financial aid packages from your child’s college might include merit and needs-based scholarships and grants, as well as work-study programs.

Remember that borrowing funds from your retirement accounts is not a sound education funding plan, as your child can borrow money for his or her education but you cannot borrow for retirement.

Contact us to learn more about effective strategies for education planning.

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