529 College Savings Plans

Since today is 5/29 we thought it only fitting that we talk about 529 plans. A 529 plan is an investment plan, that is usually state sponsored, designed for you to save for your future college needs. In most cases parents set them up for their children so that when the time comes, the financial burden of college expenses will not be so heavy. Did you know that according to the 2017 College Board that future college costs are expected to inflate 5% per year? However, with a 529 college savings plan, you can defer annual taxes on account earnings and earnings on withdrawals used for qualified higher education expenses are tax free. What this offers parents is the chance to earn returns above the yearly inflation rates. To find out if a 529 plan is right for you and your family, contact your financial advisor. Remember, it is never too early to begin planning for your child’s future!