Prepare Today for Your Child’s College Tuition Costs
The cost of college tuition rises almost every year and can be a huge burden for families to handle. To help ensure your child can get the education necessary to have a successful career, it’s wise to include education planning in your overall financial plan. Here at LPL Financial - Dallas Grabow, we frequently help families develop a strategy for future college savings.
Most Popular Ways To Save for Tuition
There are several different approaches you can take to save up for your child’s education. Two of the most popular tax-advantaged ways to save for college are:
- Coverdell Plans: These plans allow parents to count contributions as tax-deductible expenses. You can contribute up to $2,000 per year per child until your child reaches the age of 18. To qualify for this type of plan, your family must bring in less than $220,000 each year.
- 529 Plans: We consider 529 plans to be a great strategy for future tuition costs. They are tax-deductible plans and won’t require your kids to pay any taxes on them as long as the funds are used for qualifying tuition and other education costs.
Contact Us
If you want an alternative to these programs, just let us know. We can set you up with certificates of deposit accounts, traditional savings accounts and IRAs. Contact us today to learn more about our education planning services.
