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Long before retirement, the first financial challenge of many investors is education funding. Hefren-Tillotson can offer you a solid understanding of the investment vehicles that can provide the right yields at the right time.
More Americans than ever are going to college, and American families are paying more for college every year. In 2010, the average estimated tuition cost for an incoming freshman is $36,407.
To make it easier for families to prepare for college expenses, Congress created the Education IRA in 1997. In 2001, the program was reintroduced with enhancements as the Coverdell Education Savings Account. Featuring tax-deferred growth and tax-free withdrawals, Coverdells provide friends and family members with an attractive-but limited-opportunity to save for a child's educational goals.
529 plans are another option for college savings. Unlike Coverdell accounts, contributions to 529 plans are not sharply limited in terms of annual contributions.
These programs offer great opportunities to save for the costs of higher education, but we recommend that you view them within the context of your larger financial plans, ensuring that you maximize your tax relief.
Using our MASTERPLAN Approach, Hefren-Tillotson can help you create an education planning strategy that helps you achieve your goals for college education funding-without derailing your longer-term goals.
To learn more about our financial planning services for college education funding, contact us for a no-obligation consultation today.
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