Education Planning
Planning for your children’s education is probably one of the most important goals you will have as a parent. Additionally, college education can be an expensive prospect, likely ranking just below your house in terms of big-ticket items you'll purchase in your lifetime. That's why it's important to develop a solid education funding plan. By beginning early, you can leverage the power of compounding and significantly reduce the amount of capital you will need to contribute to your education fund.
Hutchinson Financial can help you design a savings and investment strategy that specifically addresses your family’s financial situation and educational needs. To help you develop and implement your customized education funding plan, we consider a number of factors, including:
- How much will you need over time? Considerations include how much time you have until you will have to start paying tuition and other related costs, how long those payments will continue and if you are planning to send your children to public or private schools.
- How much can you comfortably set aside? Very few people can afford to invest the lump sum that it would take to finance a college education—even many years down the road. That's why many investors choose to build a college fund with regular, periodic payments.
- What investment returns will you need to achieve the required amount? Will your family expect to qualify for any type of financial aid?
- What investment funding option best suits your situation? There is a wide variety of available funding vehicles providing a range of funding options, investment returns, tax considerations and withdrawal/liquidity options. Some of the most popular education funding options include: Savings Plan Trusts (529 Plans); Education IRAs; Variable Universal Life Insurance; UGMAs (Uniform Gift/Transfer to Minors Act Accounts); Prepaid Tuition Plans; and Education Tax Credits.