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40% of U.S. workers have saved
less than $25,000 for retirement.*

*2019 Retirement
Confidence Survey, EBRI

Only 42% of Americans know how
much money to save for retirement.*

*2019 Retirement Confidence Survey, EBRI

43% of retirees left
the workforce earlier
than planned.*

*2019 Retirement
Confidence Survey, EBRI

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.

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 state benefits such as financial aid, scholarship funds, and protection from creditors 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.