Saving for College

There are a number of options to consider as you plan ahead for ways to fund college for your children.

  1. Potential Direct Financial Impact

    • Potential state tax benefits for partial 529 contributions.
    • Tax free investment growth on your existing 529 college savings accounts.
    • Potential need to optimize the amount of your contributions, the types of savings vehicles, and your asset allocation.
    • Need to balance saving for college with preparing for your own retirement.
    • Reallocation of funds from kids activities (ie. sports or camp) to cover any out of pocket tuition costs when the time comes.
    • Costs associated with future college tuition and living expenses.
  2. Potential Secondary Impacts

    • Lifestyle impact if you need to reduce expenses to save more and get on track for college.
    • Rebalance or adjust your asset allocation periodically to ensure it is appropriate based on your objectives, time horizon, and risk tolerance
    • The need to balance saving for college with a brokerage account for flexibility of funding to cover non-qualified expense like non-campus housing
    • The potential need to balance paying down your own student loans with saving for college for your children.
    • The potential need to look into alternative funding sources like a Home Equity Loan of Credit (HELOC), grants and scholarships as an additional supplement to savings and student loans.
  3. Self Completion/Execution Risks

    • Sacrificing your own retirement to fund college for your children.
    • Missing out on potential state tax deductions for 529 contributions to your state sponsored plan.
    • Lost growth opportunity on dollars that could have otherwise been invested if you start saving too late.
    • Not super-funding a 529 plan up to the five year annual gifting limit if you have cash available to do so.
    • Funding a pre-paid college tuition plan only to have your child go to another school.
    • Not using different savings vehicles (529 and brokerage) to provide flexible funding for qualified and non-qualified expenses
  4. Situations where expertise adds the most value

    • Tax Adviser
      Consulting a tax adviser may be helpful to determine how best to structure your college funding across different savings vehicles like a 529 plan, Coverdell Education Savings Account (if under income limits), brokerage account, HELOC, and/or cash value life insurance to create flexibility to cover various types of qualified and unqualified expenses.
    • Legal Adviser
      Working with a trust and estate attorney may be beneficial to put a plan in place to leave assets to cover education costs for future generations.
    • Financial Adviser
      Working with a financial adviser may be advantageous to help you determine, and stick with the right investment mix, needed to meet your retirement and college savings goals. Additionally, a financial adviser may be able to help you create an updated budget that enables you to save more toward both goals.

Harness the full potential of your wealth

We blend deep expertise, sophisticated technology, and personal service to identify strategies that unlock value and pair you with advisers that turn those strategies into reality.

GET STARTED Learn More

Working with us

We’ll start by working with you to create a personal balance sheet and current financial outlook. From there, we present a curated list of Financial Advisers, CPAs, and Trust & Estate Attorneys from which you can choose.

GET STARTED