Services | Education Planning

There are a variety of accounts, methods and strategies to plan for financing education. We discuss the advantages and disadvantages of each option with clients and advise on tax and investment considerations to determine the best way to plan for financing education.

Qualified Tuition Programs

Savings Account Plans (529 Plans)

Contributions are made to an account and invested in an asset allocation between equities and fixed income.
Distributions from the Plans used for qualified higher education expenses are tax-free.
Unused assets in the Plan can be assigned to another member of the family.

Prepaid tuition plans

Contributions to these plans are used to purchase tuition credits for a designated beneficiary.
Typically, these plans are limited to colleges and universities in a given state, and not all schools in a state participate in these plans.
The idea is to lock in tuition at today’s cost.

Coverdell Education Savings Accounts (ESAs)

These accounts are similar to IRAs that are designed for saving for college.

Uniform Gifts to Minors Act (UGMA) / Uniform Transfers to Minors Act (UTMA) accounts

These are accounts that are owned by a designated individual who is above the age of majority (typically either 18 or 21 years old, depending on the state) for the benefit of an individual younger than this age of majority. Then, upon reaching the age of majority, the child is entitled to take sole ownership of this account.

United States Saving Bonds (Series E / EE and I bonds)

Financial aid application assistance

We can provide general information about the financial aid application process.

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		Services \| Education Planning
Overview Tax Planning and Tax Preparation — Sechrest & Bloom, LLC Investment Management Planning Estate and Charitable Planning Insurance Planning Retirement Planning Employer and Concentrated Stock Planning Education Planning Employee Benefits Planning Business Planning Identity Theft Prevention Planning Secure, On-Line Client Portal		There are a variety of accounts, methods and strategies to plan for financing education. We discuss the advantages and disadvantages of each option with clients and advise on tax and investment considerations to determine the best way to plan for financing education. Qualified Tuition Programs Savings Account Plans (529 Plans) Contributions are made to an account and invested in an asset allocation between equities and fixed income. Distributions from the Plans used for qualified higher education expenses are tax-free. Unused assets in the Plan can be assigned to another member of the family. Prepaid tuition plans Contributions to these plans are used to purchase tuition credits for a designated beneficiary. Typically, these plans are limited to colleges and universities in a given state, and not all schools in a state participate in these plans. The idea is to lock in tuition at today’s cost. Coverdell Education Savings Accounts (ESAs) These accounts are similar to IRAs that are designed for saving for college. Uniform Gifts to Minors Act (UGMA) / Uniform Transfers to Minors Act (UTMA) accounts These are accounts that are owned by a designated individual who is above the age of majority (typically either 18 or 21 years old, depending on the state) for the benefit of an individual younger than this age of majority. Then, upon reaching the age of majority, the child is entitled to take sole ownership of this account. United States Saving Bonds (Series E / EE and I bonds) Financial aid application assistance We can provide general information about the financial aid application process. And more