Building Life Plans, One Client at a Time

Education Planning

Your children deserve the best education possible. We can help you
plan for it.

You know that providing your children with a good education is a very important step on their road to success. Over a lifetime, college graduates earn twice as much as high school graduates.* But with the soaring cost of education, how can you pay for it without jeopardizing your own future?

We help you explore your options when we create your life plan, starting with a comprehensive review of your assets and your goals. How old are your children now? Will they remain in public school until college, or are you paying tuition already? How much will you need to fund the college education you want them to have, considering that tuition is expected to increase 6% a year?*

It’s best to begin setting aside money for your children’s education as soon as possible. In order to reduce your out-of-pocket costs when your children reach college age, you may want to consider using 529 Savings Plans or 529 Prepaid Tuition Plans. Earnings grow tax-deferred and distributions are free of federal taxes when used for higher education.

Your education planning might include using your IRA accounts, where assets can grow without being taxed. You can make withdrawals from these accounts to fund college expenses without facing a 10% early withdrawal penalty (although you will pay income taxes from a regular IRA). If you don’t expect your children to qualify for financial aid, another possibility is a Uniform Transfer to Minors Act (UTMA) account, into which you can transfer income-generating assets.

We will familiarize you with ways to plan for your children’s education and help you select the solutions that will work for you.

*US Census Bureau, 2009