College Planning

Investment options at Webster Investment Services can help you plan for your child’s future education costs right now.

  • Fast Facts
  • Get professional advice
  • Choose from many plan options
  • Enjoy potential tax benefits

They say you can’t put a price on a college education, but that doesn’t make it any less expensive. At Webster Investments, we understand how overwhelming the cost of college can seem and offer a range of options to help you plan, save, and make it affordable for when the time comes.

Webster offers access to three ways to save for college:

529 Education Plan

With its tax-free withdrawals for qualified college expenses and tax-deferred growth on earnings, the 529 Plan has become one of the most popular ways to save for college.

This plan offers other benefits like:

  • No income limitations
  • Ability to name anyone as beneficiary: grandchild, niece/nephew, godchild, or yourself
  • A range of investments from aggressive to balanced and age-based
  • Unlimited beneficiary transfers

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 benefits 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.

Uniform Gift to Minors Act (UGMA)

Simply put, a UGMA is a trust that allows minors to own securities. These accounts are easy to open, have few age or income restrictions, and provide the flexibility to use the funds for almost anything that benefits your child.

UGMAs offer advantages like:

  • No income limitations
  • Earnings that can be taxed at a minor’s rate
  • Ability to manage the account as trustee while your child is a minor
  • Automatic transfer of ownership when your child turns 18

Coverdell Education Savings Account

Like 529 plans, earnings can grow tax-deferred and withdrawals are tax-free for qualified educational expenses. But unlike the 529, the money you save is not restricted to higher education expenses alone and can be used for kindergarten through high school as well.

Coverdells have benefits such as:

  • More flexible investment options
  • Option to transfer unused money to another family member’s account
  • Broader range of qualifying educational expenses
  • $2,000/year contribution limit per beneficiary

Which Option is Best for You?

At Webster Investments, we realize that your financial goals are uniquely your own. That’s why the Financial Consultants at Webster Investments work with you to understand your needs and help you choose a savings plan that fits your goals.

We’ll consider many factors, including:

  • Your child’s age
  • Projected costs of public and private colleges
  • The total amount you expect to cover for your child’s education
  • Your expectations for a rate of return
  • How much and how often you plan to contribute

Of course, you’ll want to consult a tax advisor/professional regarding your specific situation.

Need personalized investment advice? Have a financial consult contact me.

To learn more about College Planning, please call us at 1-888-493-2783, option 4, or visit a Webster branch near you.

 

Securities and Insurance Products:

 Not FDIC Insured Not Bank Guaranteed  May Lose Value 
 Not a Bank Deposit  Not Insured by any Federal Government Agency 

 

Securities offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. Webster Bank, N.A. and Webster Investments are not registered broker/dealers and are not affiliated with LPL Financial.

 

The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: NY, CT, MA & RI.

 

The Webster Symbol and Webster Investments are registered trademarks of Webster Bank, N.A. registered in the U.S. Patent and Trademark Office.

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