Education Planning
Our experienced financial advisement team understands how challenging it can be to navigate through the overwhelming number of college savings options.HFG constantly monitors college tuition predictions to help you figure out how to pay for college. We work within your budget to find the best solution so you can afford to put your children through college – without suffering financial hardships at home. Let our experts do the hard work for you so you can be comfortable in knowing you’ve provided your children a sound education. |
Your first step is to determine how much it will cost to send your children to college. Use this calculator to help:College Funding Calculator
Your next prudent step is to develop a systematic investment plan that will enable you to accumulate the necessary funds. What are your funding options? Which would be best for your situation? We’ve listed several below, along with a brief description of each. Universal life insurance policies build cash value through regular premiums and grow at competitive rates. These policies carry a death benefit. In addition to providing cash to your heirs in the event of your death, this death benefit gives universal life insurance policies their tax-free status. Money can usually be withdrawn from these contracts through policy loans, often at no interest. These withdrawals may reduce the policy’s death benefit. Zero-coupon bonds represent the ownership of principal payments on U.S. government notes or bonds. Unlike traditional bonds, zero-coupon bonds make no periodic interest payments. Instead, they are purchased at a substantial discount and pay face value at maturity. The value of these bonds is subject to market fluctuation. Their prices tend to be more volatile than bonds that pay interest regularly. And even though no income is paid, the inherent interest is still taxable annually as ordinary income. Mutual funds are established by an investment company by pooling the monies of many different investors and then investing that money in a diversified portfolio of securities. These securities are selected to meet the specific goals of the fund. The value of mutual fund shares fluctuates with market conditions so that, when sold, shares may be worth more or less than their original cost. INDEPENDENT COLLEGE 500-INDEXED CERTIFICATES OF DEPOSIT The I.C. 500 is the College Board’s index of college inflation based on a survey of the costs at 500 independent colleges and universities. I.C. 500-indexed Certificates of Deposit are a relatively new funding vehicle offered by a few savings institutions. Their rate of return is directly linked to the I.C. 500 index. Section 529 Plans are also known as Qualified State Tuition Programs. These plans are sponsored by individual states and offer higher contributions than Coverdell IRAs along with tax-deferred accumulation. Once withdrawals begin, they are tax exempt as long as the funds are used to pay for qualified higher education expenses. As with other investments, there are generally fees and expenses associated with participation in a Section 529 savings plan. In addition, there are no guarantees regarding the performance of the underlying investments in Section 529 plans. The tax implications of a Section 529 savings plan should be discussed with your legal and/or tax advisors because they can vary significantly from state to state. Also note that most states offer their own Section 529 plans, which may provide advantages and benefits exclusively for their residents and taxpayers. | Related Products & ServicesRelated ArticlesRelated Calculators
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Inflation Goes to College |
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