An education planning strategy can be the greatest gift you ever give your child or grandchild. It could offset escalating tuition costs and is tax free. We have been helping clients save and invest for college for more than 10 years. Call now and start paving a road to opportunity for your child. The sooner you start, the better.
Developing a plan for higher education is critical as tuition rises at about 8 percent a year, according to FinAid.com. Student loans can be a tremendous burden to your child long after he or she graduates. Education planning helps lift that burden by allowing you to plan for college years in advance. It is easy to set up and can fit into almost any budget. Certain programs provide future tuition at today's prices and hefty tax breaks. Is there a better investment than your child's future?
Because You Can't Count on a Scholarship
Geisbauer Wealth Management offers comprehensive education planning services. We will show you exactly how much you need to set aside for your child's post-secondary schooling. Take advantage of strategies that can put you way ahead of the game. It is a fundamental part of the total investment services we provide for clients at every income level.
The education planning services we provide are based solely on what is best for you. We take pride in being an independent financial investment firm – beholden to no investments or provider. We are committed to earning your trust. Our clients' interests come first and foremost. That is extremely important when it comes to your most precious resource - your children or grandchildren.
Section 529 Plans
This popular college savings program offers tax-free investment growth. It is also cost-effective, paying for tomorrow’s college today. The plans are state-sponsored and can be used at any accredited college, both public and private. There are tax-free withdrawals for certain qualified education-related expenses, as well. We can discuss with you other features of the program to help you make a decision.
It is possible to get state income tax deductions in some cases. However, a non-qualified withdrawal may result in federal income tax and a 10 percent federal tax penalty on earnings.
If your child does not go to college, or has extra funds remaining, those funds can be transferred to another family member or taken out of the account. Many 529 education planning vehicles offer a number of age-based investment choices. These are diversified, targeting asset classes based on the age of the child.
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 benefits 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.
Projecting the cost of college in five, 10 or 18 years is difficult at best. Prepaid tuition eliminates a large portion of the guesswork, allowing you to pay for a part of college costs in advance. Some are sponsored by institutions and others are part of a consortium.
Coverdell Education Planning Savings Account
The Coverdell ESA is an alternative education planning route that has long been eclipsed by 529 but is warranting a second look. Formerly known as an educational IRA, it can apply to K-12 education as well as college. It offers flexibility, tax-free benefits and potentially lower costs. However, it does have a number of restrictions on income and contributions that can have tax ramifications.
Experience the Difference
We can help you make an informed decision as to whether a 529 plan or educational savings account makes more sense for you. You may also want to explore other investment ideas, such as bonds or your own savings account.
We do not operate on a commission basis; one flat fee covers everything to manage your education planning or any other investments you entrust to us. This can potentially provide a cost savings to you.
With tuition prices skyrocketing, it's projected that in 2030, given a 6% inflation rate, four years of undergraduate studies at a public institution could cost $108,000 for in-state tuition, or $362,800 at a private college*; but you can put it within reach if you act now.
When you are looking for honesty and expertise in education planning, today is the day to start. We can show you how. Call now.
*No strategy assures success or protects against loss.
*Sources: The College Board™ 2012-2013 cost projections; savingforcollege.com
Tim W. Geisbauer is a Registered Representative with and securities and advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC.
The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: TX, AZ, CA, FL, ID, IL, NJ, NY, UT