SMARTSTART
Ways to Save For Your Child's College Education
June 28, 2018
Paying for a college education in the U.S. is expensive, and the upward trend in tuition and expenses doesn’t seem to be lessening. According to the 2017 College Board “ Trends in College Pricing ” report, the average annual in-state cost for a public university for the 2017-2018 academic year, including tuition and fees, books and supplies, room and board, transportation, and other expenses, was $25,290 per year. For students in private colleges, the cost was nearly double that amount, at $50,900. When you consider fewer than 40 percent of students graduate in four years, the total price tag for a college education can be staggering.
Fortunately, there are some strategies savvy parents can take to plan ahead, making paying for their children’s college educations less taxing.
Start Early
First, it’s never too early to start saving for your children’s education. Setting aside a little bit of money each month from the time your child is in diapers can reap significant rewards when it’s time to pay their college tuition bills. The Department of Education provides an example that shows saving just $14 a week in an account earning one percent interest will result in a balance of more than $13,000 after 17 years.
Consider a 529 Savings Plan
You may also want to consider using a 529 plan account to help save for college. 529 plans allow people to save for college on a tax-advantaged basis. Investments grow tax-deferred and, when used for qualified educational expenses, withdrawals are free from federal income tax. Various states offer different 529 plan options; some include state-specific tax advantages, grants, and other potential benefits. You should carefully evaluate options, fees, and potential tax impact before choosing a 529 savings plan.
Evaluate Prepaid Tuition Plans
Some states offer an alternative to 529 savings plans by offering prepaid tuition plans, which allows parents to purchase tuition credits ahead of time. Prepaid tuition plans offer tax-deferred growth and withdrawals, just like 529 savings plans. One major limitation of these plans, however, is that they limit your child’s options to in-state public universities if you want to get the full benefit of the plan.
Invest Through UTMA/UGMA Accounts
You could also choose to open an investment account for your child under your state’s Uniform Transfer to Minors Act (UTMA) or Uniform Gift to Minors Act (UGMA) law. With these types of accounts, a certain amount of the gains is tax-advantaged. However, any money in the account automatically becomes the child’s money when he or she reaches the age of majority in your state (between 18-21). That means, although you may expect your child to use the money to pay for college, your child could use it for any purpose.
Leverage the Power of Cash Value Life Insurance
Last (but certainly not least), you can leverage the power of cash value life insurance to help pay for your child’s education. The SmartStart plan , available through Symmetry Financial Group, can do more than just help you save for college; it can help you protect your child’s future insurability. SmartStart is, first and foremost, a life insurance vehicle, providing valuable protection for your child. Because the cost of life insurance is driven in large part by the age of the insured person, it’s generally inexpensive for children. This allows parents to both pay for life insurance and set aside extra funds in the policy’s cash value account. That cash value grows tax-deferred as your child grows, at competitive rates.
When it’s time to pay tuition bills, the accumulated funds can be used to pay for college expenses. Best of all, the policy doesn’t end when your child finishes college. He or she can keep it in force by paying policy premiums and can continue to fund the cash value account, providing a valuable asset that can be used to make a down payment on a home, pay for their own children’s educations, or help fund their retirement.
Symmetry Financial Group Can Help Ease the Burden of Paying for College
Saving for college takes some pre-planning and effort, but it’s not impossible. When you want to help your child by financing some or all of their college expenses, you have many options. Your Symmetry Financial Group Independent Insurance Agent can help you explore how life insurance solutions can help you give your child the education you want them to have.
To learn more and to request a quote, contact us today online .
LIFE AT SYMMETRY
Attracting Talent — How
To Diversify and Grow
Your Workforce
SMARTSTART
Ways to Save For Your Child's College Education
June 28, 2018
Paying for a college education in the U.S. is expensive, and the upward trend in tuition and expenses doesn’t seem to be lessening. According to the 2017 College Board “ Trends in College Pricing ” report, the average annual in-state cost for a public university for the 2017-2018 academic year, including tuition and fees, books and supplies, room and board, transportation, and other expenses, was $25,290 per year. For students in private colleges, the cost was nearly double that amount, at $50,900. When you consider fewer than 40 percent of students graduate in four years, the total price tag for a college education can be staggering.
Fortunately, there are some strategies savvy parents can take to plan ahead, making paying for their children’s college educations less taxing.
Start Early
First, it’s never too early to start saving for your children’s education. Setting aside a little bit of money each month from the time your child is in diapers can reap significant rewards when it’s time to pay their college tuition bills. The Department of Education provides an example that shows saving just $14 a week in an account earning one percent interest will result in a balance of more than $13,000 after 17 years.
Consider a 529 Savings Plan
You may also want to consider using a 529 plan account to help save for college. 529 plans allow people to save for college on a tax-advantaged basis. Investments grow tax-deferred and, when used for qualified educational expenses, withdrawals are free from federal income tax. Various states offer different 529 plan options; some include state-specific tax advantages, grants, and other potential benefits. You should carefully evaluate options, fees, and potential tax impact before choosing a 529 savings plan.
Evaluate Prepaid Tuition Plans
Some states offer an alternative to 529 savings plans by offering prepaid tuition plans, which allows parents to purchase tuition credits ahead of time. Prepaid tuition plans offer tax-deferred growth and withdrawals, just like 529 savings plans. One major limitation of these plans, however, is that they limit your child’s options to in-state public universities if you want to get the full benefit of the plan.
Invest Through UTMA/UGMA Accounts
You could also choose to open an investment account for your child under your state’s Uniform Transfer to Minors Act (UTMA) or Uniform Gift to Minors Act (UGMA) law. With these types of accounts, a certain amount of the gains is tax-advantaged. However, any money in the account automatically becomes the child’s money when he or she reaches the age of majority in your state (between 18-21). That means, although you may expect your child to use the money to pay for college, your child could use it for any purpose.
Leverage the Power of Cash Value Life Insurance
Last (but certainly not least), you can leverage the power of cash value life insurance to help pay for your child’s education. The SmartStart plan , available through Symmetry Financial Group, can do more than just help you save for college; it can help you protect your child’s future insurability. SmartStart is, first and foremost, a life insurance vehicle, providing valuable protection for your child. Because the cost of life insurance is driven in large part by the age of the insured person, it’s generally inexpensive for children. This allows parents to both pay for life insurance and set aside extra funds in the policy’s cash value account. That cash value grows tax-deferred as your child grows, at competitive rates.
When it’s time to pay tuition bills, the accumulated funds can be used to pay for college expenses. Best of all, the policy doesn’t end when your child finishes college. He or she can keep it in force by paying policy premiums and can continue to fund the cash value account, providing a valuable asset that can be used to make a down payment on a home, pay for their own children’s educations, or help fund their retirement.
Symmetry Financial Group Can Help Ease the Burden of Paying for College
Saving for college takes some pre-planning and effort, but it’s not impossible. When you want to help your child by financing some or all of their college expenses, you have many options. Your Symmetry Financial Group Independent Insurance Agent can help you explore how life insurance solutions can help you give your child the education you want them to have.
To learn more and to request a quote, contact us today online .
Related Posts
LIFE AT SYMMETRY
Attracting Talent — How
To Diversify and Grow
Your Workforce
LIFE AT SYMMETRY
Benefits of Remote
Work as a Life Insurance
Agent
SYMMETRY IN THE NEWS
Symmetry Financial
Group Promotes 12 New
Agency Owners in One Month
Latest Posts
LIFE AT SYMMETRY
Attracting Talent — How
To Diversify and Grow
Your Workforce
LIFE AT SYMMETRY
Benefits of Remote
Work as a Life Insurance
Agent
SYMMETRY IN THE NEWS
Symmetry Financial
Group Promotes 12 New
Agency Owners in One
Month
Would You Like to Request a Quote?
Please fill out the short form so we can provide you with the policy options
to best match your coverage and financial needs.
Would You Like to Request a Quote?
Please fill out the short form so we can provide you with the policy options
to best match your coverage and financial needs.
Core Values
Our eight core values are the
driving force behind everything we do.
Largest Life Insurance Guide
Read our comprehensive guide to answer any life insurance questions you have.
Interactive Timeline
View our interactive timeline to
see what insurance is right for you
CONTACT US
DEBT FREE LIFE
Learn more about Symmetry Financial Group’s Debt Free Life program, which
can help you get out of debt in nine
years or less without spending any additional money.
PRODUCTS
• Mortgage Protection
• Final Expense
• Term Life Insurance
• Universal Life Insurance
• Disability Insurance
• Critical Illness Insurance
• Retirement Protection
• SmartStart Insurance
WHY SYMMETRY?
Copyright © 2024 Symmetry Financial Group. All Rights Reserved. | Privacy | Site Map
“Quility” is a brand name used by the Quility family of companies. All insurance offers, solicitations, and recommendations made via this website are being made by Quility’s licensed affiliated insurance producers, Symmetry Financial Group, LLC (d/b/a Symmetry Insurance Services in California) and Jerry Choate. No offers, solicitations or recommendations are being made via this website in any state where one of those named Quility licensees does not have a license. Please see our License Page for a list of all of Symmetry Financial Group, LLC’s (d/b/a Symmetry Insurance Services in California) and Stephen J. Brenes’s license numbers in each state.
CONTACT US
DEBT FREE LIFE
Learn more about Symmetry Financial Group’s Debt Free Life program, which
can help you get out of debt in nine
years or less without spending any additional money.
Jerry Choate
Copyright © 2024 Symmetry Financial Group. All Rights Reserved. | Privacy | Site Map
“Quility” is a brand name used by the Quility family of companies. All insurance offers, solicitations, and recommendations made via this website are being made by Quility’s licensed affiliated insurance producers, Symmetry Financial Group, LLC (d/b/a Symmetry Insurance Services in California) and Jerry Choate. No offers, solicitations or recommendations are being made via this website in License Page for a list of all of Symmetry Financial Group, LLC’s (d/b/a Symmetry Insurance Services in California) and Jerry Choate’s license numbers in each state.
No agent’s success, earnings, or production results should be viewed as typical, average, or expected. Not all agents achieve the same or similar results, and no particular results are guaranteed. Your level of success will be determined by several factors, including the amount of work you put in, your ability to successfully follow and implement our training and sales system and engage with our lead system, and the insurance needs of the customers in the geographic areas in which you choose to work.
custom_values.agent_bio=Mr. Choate has more than 30 years of experience in corporate finance and insurance as a business founder, investment banker, insurance agency owner and agent, and strategic advisor for various public and private companies, individuals, families, and small business owners. He serves as an Agency Owner at The Choate Agency, a national insurance agency specializing in specialized solutions for mortgage protection, retirement income solutions, and various other niches including Debt Free Life. He also served as founder of Think Capital Advisors, a privately held specialty, global advisory firm that combines growth strategy and corporate finance to drive shareholder value. During his tenure, Think Capital Advisors successfully assisted early-stage companies to profitability and participated in over $1 billion of corporate finance advisory. Mr. Choate also served as Managing Director at MidSouth Capital, a boutique investment banking firm. One of his clients at MidSouth eventually sold to GE Healthcare for $587 million. Jerry’s Partners have put in 10s of billions of protections for their clients, from mortgage protection, final expense, and other niches including Debt Free Life.
custom_values.agent_brokerage=The Choate Agency
custom_values.agent_headshot=undefined
custom_values.agent_name=Jerry Choate
custom_values.agent_phone=(205) 447-1180
custom_values.agent_title=
custom_values.agentemail=
custom_values.booking_page_link=
custom_values.booking_thank_you_page=
custom_values.brag_link=
custom_values.claim_thank_you_page=
custom_values.confirm_sale=
custom_values.final_expense_booking_page=
custom_values.from_email=
custom_values.insurance_license_number=
custom_values.life_insurance_landing_page=
custom_values.logo_image_url=
custom_values.outbound_email=
custom_values.recruiting_booking_link=
custom_values.twilio_number=(205) 846-0611
custom_values.twilio_number_in_link_form=Tel:(205) 846-0611
custom_values.licensenumber=
jerrychoate@me.com
SFG0013742
(205) 846-0611
Tel:(205) 846-0611
8VNwRd3yjv5VktYm0mU2