The cost of higher education has skyrocketed in recent years and costs will continue to rise in the future. The good news is that investors now have more options than ever for saving for college, including several different savings vehicles and a choice between small monthly investments or lump sum investments.

Whether your child is college bound in 10 years or next year, the time to start preparing is now. Contact a Farmers Insurance and Financial Services Agent today.

529 College Savings Plans

529 College Savings Plans offer a variety of benefits to families saving for a college education.

• Earnings grow on a tax deferred basis
• Qualified withdrawals may be tax free
• Mutual fund based investment options
• Ability to save for anyone - including yourself

Investment options, fees and restrictions can vary. Non-qualified withdrawals may be taxable and/or subject to a 10% tax penalty on earnings. State taxes may also apply. A Farmers Insurance and Financial Services Agent can help you with choosing a product that fits your needs and goals.

Coverdell Education Savings Accounts (ESAs)

Education savings accounts are tax-deferred savings and investment account that can be used to pay for your child's qualified expenses for secondary school (kindergarten through high school) as well as for higher education. There are income restrictions, and fees and expenses can vary. Contact a Farmers Insurance and Financial Services Agent to help you with choosing a product that fits your needs and goals.
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UGMAs/UTMAs

Uniform Gift to Minors Act (UGMA) or Uniform Transfer to Minors Act (UTMA) accounts are another way to save for college. A parent, grandparent or other adult acts as custodian for the account and makes all the decisions regarding the account until such time as the child (the minor) reaches age of majority. These accounts not only work for college savings, but for regular savings and investing as well. These accounts can be a great way to teach children financial responsibility and the principals of saving and investing.

A Farmers Insurance and Financial Services Agent can help in developing a strategy that can help you meet and your family's financial goals and objectives. Back to Top

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so investors may lose money including loss of principal invested. Purchasers of 529 College Savings Plans, Coverdell Education Savings Accounts or mutual funds and should consider investment objectives, risks, charges and expenses of the investments carefully before investing or purchasing. The offering statements or prospectuses contain this and other important information. Please contact your Farmers Insurance and Financial Services Agent for an offering statement or prospectus and read them carefully before purchasing such investments.

Past performance of any investment does not guarantee future results; investment returns will fluctuate so that an owner's shares, when redeemed, may be worth more or less than their original cost.

Farmers agents do not offer tax or legal advice. Please consult your tax advisor or legal advisor for advice.

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FFS2398COL                                                                                      06/09