College 529 Plans

College planning is an essential part of family financial planning. Most people understand the importance of saving for a child's education well in advance, however the vast majority end up saving very little by the time the child reaches the matriculation date. Parents will often find themselves having to cut back on living expenses, borrow money, tap into retirement assets, or seek additional employment to meet the funding requirements of a college education.


What Will College Cost?

The current cost of a four year degree from a private university is roughly $133,000*. To send your child to a public college to obtain a four year degree would cost approximately $64,000*.

College saving poses another challenge to investors. The cost of college tuition rises at a super inflationary rate each year. Currently, the average cost of tuition is rising annually at a rate of 7.8%*. This means that in order for investors to stand a chance in meeting the funding requirements, they will need to start saving early, as well as invest in a plan that has many investment choices that can potentially provide a higher rate of return.


Consider a College 529 Plan

College 529 plans have become an increasingly popular way to save for a child's education. They provide the investor with a tax-advantaged approach to college saving and typically allow for investing in mutual funds.
Here are some of the advantages of investing in a college 529 plan:

  • Earnings grow tax-deferred.
  • Withdrawals are federally tax free when used for qualified college expenses.
  • There are no income restrictions.
  • Contribution limits are high.
  • You retain the right to determine how the account is used.
  • Proceeds can be used nationwide.
  • There are estate and gift tax benefits.
  • Plans are open to residents of any state.
  • Initial minimum investment is low.

Receive a Free College 529 Kit

To learn more about college 529 plans, complete this form and we will send you out a free kit from one of our carriers.