Educational Planning
Planning for educational expenses is critical given the escalated cost of college tuition, room and board. College tuition has escalated at nearly seven times the rate of inflation. Using approved educational programs such as the “529” programs offered through pre-approved state providers, you can set aside pretax dollars for educational purposes and invest these dollars in cash, bonds or stocks to maximize the growth of the investment to be used for educational purposes. Like an IRA or 401(k), they allow the account owners to choose their investment strategy from among the options offered under the particular plan. These plans offer parents the potential to earn returns above the yearly tuition inflation rate. Additionally, 529 plans also offer unique gifting and estate tax benefits.