How to plan, save and pay for the cost of education
Special Report

Smart Ways to Save (and Pay) for Education

May 13, 2022

You have heard the horror stories. Today’s average annual cost of tuition, room and board at a four-year private college is a whopping $53,217. While it seems a bargain by comparison, even the average cost of a four year state school is a steep $25,487 for residents (and a hefty $43,161 for out-of-state enrollees). And the price continues to climb—jumping some 50% for private schools from the 2011-2012 academic year to the 2021-2022 one.

At Adviser Investments, we’ve been helping clients plan for the cost of education since our 1994 founding. And while there are a number of ways to save, 529 plans are an attractive option for a wide range of people because of their high contribution limits, federal tax benefits, potential home-state tax incentives, flexibility in choosing and changing beneficiaries, and the ease with which they can be established and funded. And as of 2018, you can use them for private elementary and secondary school tuition as well.

For anyone wondering how they are going to cover four (or more) years of tuition for their children, or who has questions about 529 plans, consider this report required reading.

Topics include:

  • The two types of 529 plans
  • Tax implications and benefits
  • The impact on financial aid
  • Special rules for grandparents

It’s never too soon to become a more-informed investor.  For more information, please call us at (800) 492-6868.

529 Plans

529 plans are designed specifically for investors helping a child, relative, friend or even themselves save for tuition and expenses related to private K–12 and higher education. Plans are sponsored by states, generally in partnership with a mutual fund company or institute of learning. 529 plans offer a number of savings and investment options to choose from or a means of locking in today’s tuition rates for use in the future.

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