Education Planning

CPA services provided by Contryman Associates, P.C., Investment Adviser services are offered through Contryman Wealth Advisors

Description:
Planning for the funding of higher education for your children or grandchildren by identifying the need, setting goals, and projecting the possible future value of educational funding needs.

Benefits:
You may not be aware of how expensive higher education may be for your children or grandchildren. We can help you project what those costs may be, depending on the school, the course of study selected, and the length of time before your child or grandchild will attend.

We can give you the option of several different plans and by explaining the benefits of each you will be able to make a more informed decision. Additionally, we can implement the educational funding strategy that you select to help assure that it includes consideration of your other financial planning issues and possible tax consequences.

Some available options include Section 529 Savings Plans which are state-sponsored investment programs for families to save for future college expenses, and Prepaid Tuition Plans, which lock in the price of tuition and fees at today’s prices for a particular school. In addition to these, we can discuss Coverdell Education Savings Accounts.

Another interesting but possibly more complex funding option would be establishing a trust from which college expenses would be paid, or even a Charitable Remainder Trust with income from the trust paying college expenses and the remainder passing to charity. Other options for education funding include IRA distributions or taking a home equity loan. We can help you understand the ramifications of each.

We can also help you determine if you are eligible for available tax credits like the Hope Scholarship Credit or Lifetime Learning Credit or for student loan interest tax deductions. Funds saved for college may impact the financial aid your children may receive and it might be advantageous to restructure investment funds and payment of college expenses in order to better utilize scholarships and other financial aid opportunities.

Process:

  • Discuss your goals for the education of your children or grandchildren with your Contryman professional.
  • We can provide projections of expected costs for the institutions that may interest you or your children or grandchildren.
  • By comparing different funding options, we can help you determine the amount you will need to invest to help accumulate the needed funds.
  • We can help you implement your plan, considering all aspects from diversification of investments to tax and estate consequences to alternative funding opportunities.

 


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