Kids grow up quickly — and the years seem even shorter when you’re saving for a college education. But that’s not the only challenge. How do you find money to invest in your children’s future when you’re still paying for their present? You might have twins in daycare, or a daughter who often travels for athletic competitions. Maybe your son’s prep school is almost as expensive as a university.
Ask a Farmers Insurance and Farmers Financial Services Agent about your options. Whether you have toddlers, tweens or teens — or you’re planning your own degree program — you can save for education in a smart and tax-advantaged way.
Here are some common concerns parents have, and how a college savings plan can help:
You want to save for your child’s education — but don’t know how to get started.
529 college savings plans may be an easy place to start. These accounts offer college savers a range of investment options to choose from, including age-based portfolios that become more conservative as freshman year approaches. Earnings are tax-free — as long as you use funds for approved expenses like tuition, room and board, and books. Additionally, more than 30 states allow you to deduct all or part of your contribution from state taxes.
Your own kids are grown, but you’d like to help contribute to the college savings of your grandkids.
A 529 plan can help. Anyone — grandparents, extended family or friends — can contribute. And if that child doesn’t end up choosing college, the account can fund the education of a sibling or cousin.
You have four kids — all enrolled in private primary and high schools.
You can save and invest in a child’s name with the Uniform Gift to Minors Act/Uniform Transfer to Minors Act (UGMA/UTMA) — and there aren’t restrictions on how earnings can be used, nor are there any contribution or income limitations.
Your Farmers Insurance and Financial Services Agent can discuss options so you can answer questions like these:
We’ve spent 90 years putting customers first — with personalized attention, information and products to help so you can prepare for the things that matter most.
A Farmers Insurance and Financial Services Agent can discuss your options, and help as you prepare for your financial future.
Contact a Farmers Insurance and Financial Services Agent in your area today.
"We had all the stuff you can't replace in the basement: photos, books, marathon medals," he says. "In 15 minutes, water filled the basement to the ceiling."
Withdrawals used for expenses other than qualified education expenses may be subject to federal and state taxes, plus a 10% penalty. There may be state tax incentives available to in-state residents who invest in their home state’s 529 plan. Tax issues for 529 plans can be complex. Farmers Financial Solutions, LLC and Farmers Insurance and Financial Services Agents are not tax advisors. Please consult your tax advisor about your personal situation. Purchasers of investment products should carefully consider the investment objectives, risks, charges and expenses of 529 college savings plans before purchasing. Contact your Farmers Insurance and Financial Services Agent for a prospectus or offering document containing this information. Read it carefully before investing.