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College Planning

The cost of a college education today has skyrocketed with average tuition and fees ranging from $9,000 - $35,000 per year depending on whether the institution is public or private. Some reports have student loan debt topping the $1 Trillion dollar mark with no end in sight. One of the primary investment strategies we offer at EFinancial Advisors is the 529 Plan. This plan allows a parent, grandparent guardian etc., to save for college on a tax free basis as long as the proceeds in the plan are used strictly for college related expenses the gains achieved in the account are nontaxable. Please consult your tax attorney or accountant on laws regarding actual deductibility.

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Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.