Broker Check

College Planning

  • ‚ÄčDo you understand the various education funding options?
  • Do you understand the impact of your funding choices on the other options available to you?
  • Will the ownership of your family’s savings accounts affect the financial aid available to you?


Education costs have skyrocketed over the last decade. As a parent, grandparent, or relative who is responsible for a child’s education, you know how critical meeting those costs will be in their future.


Are you planning to help your children, grandchildren or another child close to you with their education expenses? Or thinking of taking classes yourself? 


Saving for college is a significant financial planning issue for most families. The cost of higher education is one of the fastest rising costs in today's economy.  The median family income has not increased nearly enough to keep pace with rising college costs. And while there are numerous sources of funding available, identifying the right mix of alternatives and maximizing their use is a complex and confusing process.

The team of Financial Advisors at Genesis Wealth Advisors, can help you answer these key questions related to education planning:

  • How much do I need to save for a child’s education?
  • What if the child chooses not to go to college?
  • What education savings vehicle should I use?
  • How does my income affect how I save for education?
  • What if I want to retain control over the assets I set aside for education?

Genesis Wealth Advisors can Help you Develop a Plan that will Consider All of the Variables Associated with Educational Savings including:    

  • Determination of Relevant Educational Costs:  Considers the cost of a public or private institution and projects future costs based on historical inflation of educational expenses.
  • Establishing a Savings Goal Program:  Helps determine the appropriate savings rate to give you the best opportunity to reach your goal.
  • Finding Suitable Savings Vehicles:  Helps determine the most appropriate vehicle based on your present and future income, tax status and need for control of the assets.


Your ability to afford college tuition in the future will most likely depend on how much you set aside today. There are a variety of way to save and invest for college, including investments that offer attractive tax advantages.



Common College Saving Plan Options

  •  Custodial Accounts (UTMA) allow you to make an irrevocable gift to a minor to an account that your child ultimately controls when he or she turns 18 or 21 (depending on state law). He or she can use the funds for tuition and other expenses, but the dollars do not have to be used for education.
  • 529 College Savings Plans are generally sponsored by states, state agencies or educational institutions for qualified college tuition and expenses. These investment plans stay under your control and offer certain tax and contribution advantages.
  • Coverdell Education Savings Account (CESA). You can contribute to this investment account only until children turn 18 unless the child is a special needs beneficiary. This type of account can be used for elementary, secondary and college expenses and tuition. It includes tax benefits but has a maximum contribution limit of $2,000 per year.
  • Traditional/Roth IRAs. Penalty-free distributions are allowed from IRAs for eligible educational expenses for you, your children and your grandchildren. (Income taxes may apply to IRA and Roth IRA withdrawals). IRAs are not counted as assets for financial aid calculations, but withdrawals are considered financial aid income for parents.
  • Other Options.
    • In addition to Savings, Current Income and Borrowing, there are Other Ways to Finance Higher Education:
      • Financial aid from federal and state governments
      • Work-study programs or a part-time job for the student
      • Loans from private, federal and college sources
      • Scholarships and grants from different sources
      • Family gifts



Other Financial Considerations for a College Savings Plans

As you Explore College Financing Options and Determine which Program, or Combination of Programs, will Best Meet your Needs, you may Wish to Talk to our Team of Financial Advisors to Guide you Through: 

  • How does saving for education fit into your financial life? How can you resolve competing needs to save for retirement and a child's education?
  • What calculations are used by institutions in determining financial need?
  • How will a college savings plan affect your taxes, financial aid eligibility and tax credits?
  • What investment options do you have based on your risk tolerance and when the funds will be needed?
  • Which currently held funds are accessible and what are the penalties for early withdrawal?



We'll Help you with a College Savings Plan


If saving for college is an important financial goal for your family, talking the team of Financial Advisors at Genesis Wealth Advisors about how you might start a college savings plan for yourself, your children, grandchildren or other children close to you.



To learn more about College Planning and other financial services, contact Genesis Wealth Advisors to schedule an appointment today.


Participation in a 529 College Savings Plan (529 Plan) does not guarantee that contributions and investment return on contributions, if any, will be adequate to cover future tuition and other education expenses or that a beneficiary will be admitted to or permitted to continue to attend an educational institution.  Contributors to the program assume all investment risk, including potential loss of principal and liability for penalties such as those levied for non-educational withdrawals. An investor should consider, before investing, whether the investor's or designated beneficiary’s home state offers any favorable state tax treatment 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.   Consult with your financial, tax or other adviser to learn more about how state-based benefits (including any limitations) would apply to your specific circumstances. You may also wish to contact your home state or any other 529 college savings plan to learn more about the features, benefits and limitations of that state’s 529 college savings plan. Furthermore, the Tax Cuts and Jobs Act that was signed into law on December 22, 2017 allows for up to $10,000 a year per beneficiary in tax free distributions from a 529 Plan if used for tuition incurred for enrollment or attendance at a public, private, or religious elementary or secondary school. Check with your state’s guidelines prior to withdrawing the funds. For more complete information, including a description of fees, expenses and risks, see the offering statement or program description.