As we move into spring, it also means that spring break is fast approaching for students in high school and college. Just beyond that corner for many more is graduation season and moving on to the next steps in life, whether that’s a high school student on their way to college or a fresh college grad who is embarking into the job market.
Of course, the recurring theme here is going to college and that means paying for it. Many families spend years saving up for this from the moment their son or daughter is born, and it’s one of the largest expenses that happen in a person’s life. But where do you begin saving for college?
The Lewis Financial Group is here to help. We offer a variety of college funding services, including Coverdell Educational Savings accounts and other fixed insurance products that can assist in financing the cost of your student’s education.
So what exactly is a Coverdell Education Savings Account? In many ways it works similarly to a Roth IRA in that it allows for tax-free withdrawals and a monthly contribution amount of $2,000 per month during the accrual period, which lasts until the student is 18 years old. That means if you start saving early on, like right after your child is born, you can put together a sizable nest egg for your child’s future education.
Like a Roth, you’ll pay taxes on money being paid in, but the funds withdrawn for education are completely tax free. Plus, if your son or daughter chooses not to attend college, any remaining funds can remain in the account until age 30 at which point funds can be rolled into other accounts or shared with siblings. That means that by investing, you could not only help your student pay for certain educational costs in the future, but you could also accrue a substantial investment for yourself and your retirement, too.
Let The Lewis Financial Group help you plan for your student’s future. Contact our professional staff of insurance agents to help you begin your future financial blueprint. As a full-service insurance and financial agency, we’re ready to help you plan for the future. Call us today in West Virginia at 304-242-3355 or in Ohio at 740-699-2636.