Education Planning
Like Retirement Planning, which has to commence long before you enter retirement, Education Planning (for yourself or your children) needs to occur well before learners mature or young scholars are poised to embrace higher education. Luckily, several government-encouraged educational planning tools are available to individuals and families.
Why Education Planning Is Important
It’s not just about understanding America’s higher-education landscape. How individuals and families use that information to navigate that landscape ultimately matters. Without a clear plan, chances are that a generation of eager learners will either not know which educational opportunities to pursue; or they’ll lack the financial resources to follow an academic path that leads them to the career of their choice.
Without prudent educational planning, individuals and families are often left scrambling to manage and fund the higher-educational aspirations of their own or their families. Our experts have helped countless young men and women and their families make socially and financially informed decisions about their education plans.
What Can We Do for You
We’ll help you take the guesswork out of planning for future educational needs – whether for yourself or a family member (child, ward, grandchild). We create a forward-looking financial plan of estimated education costs and expenditures. Our team will help you put tax-advantaged strategies in place that are in accordance with a myriad of Federal and State laws.
Several Educational Savings Accounts (ESAs) and Educational Savings Plans (ESPs) are available to Americans. And while some ESPs allow you to set up an unlimited number of accounts, not all expenditure incurred is “qualified” under every plan – the rules might differ. Fortis Financial Group will help you make sense of some of those ESAs, including:
- 529 Plans: Also called “qualified tuition plans,” these are state or educational institution-sponsored tax-advantaged savings vehicles meant to encourage individuals and families to save for the future education costs of a beneficiary (child, grandchild)
- Prepaid Tuition Plans and Educational Savings Plans: These are two variants of 529 Plans that we’ll help you understand. While Prepaid Plans allow you to purchase credits or units towards future educational costs, Educational Savings Plans are like an investment savings account, where funds are designated solely for future educational expenses.
Both variants of the 529 Plan have specific guidelines and rules that sometimes need help understanding and following. We will help you understand everything when deciding which of these suits you and your family. - Coverdell Education Savings Accounts (Coverdell ESA): These are educational savings that can be built over time using a custodial or trust structure. The sole purpose of such an account is to pay approved educational expenses on behalf of a designated beneficiary to the account
- Navigating the ESA landscape: We’ll help you decide which ESAs are ideal for your needs. For instance, some contributions might not be deductible, while other ESA accounts are income-tested – you are only able to set them up based on income thresholds
*529 College Savings Plans
Before investing, investors should consider the investment objectives, risks, charges, and expenses associated with municipal fund securities. This information is found in the issuer's official statement and should be read carefully before investing.
Investors should also consider whether the investor's or beneficiary's home state offers any state tax or other benefits available only from that state's 529 Plan. Any state-based benefit should be one of many appropriately weighted factors in making an investment decision. Investors should consult their financial or tax advisor before investing in any state's 529 Plan.
