The average annual cost for college in the U.S. for 2023 is $35,551 per student per year, including books, supplies, & living expenses. This cost increases significantly for private & out-of-state institutions. Now is the time to help your kids pay for college by starting a 529 Plan.
With rising tuition & inflation, you can imagine how much it will cost when your little one is finally ready to leave the house. What if they follow in your footsteps & attend dental or medical, or graduate school? How will they pay for it all?
For average medical & dental professionals, we often see total debt amounts well over $500,000. Sure, they may luck out and get a full scholarship but don’t bet on that. Start saving today to help minimize the amount of debt your child may have to undertake for education,
A type of Qualified Tuition Plan, a 529 Plan, is a great way to start saving for college expenses. 529 Plans are Qualified Investment Plans that can be used to pay for college, K-12 tuition (up to $10,000 for secondary education), tutoring, apprenticeship programs, & student loan repayment.
In addition, 529 Plans offer tax benefits. Although contributions are not deductible (for federal income taxes), the earnings in a 529 Plan grow tax-free and significantly will not be taxed when money is taken out to pay for college.
Not ready to have kids yet? You can still start a 529 plan with that future in mind. Theoretically, you could always return to further your education, so you can start a 529 plan in your name & move it to your child’s name when they are born.
We recommend the low-cost, solid-performing Utah-sponsored 529 Plan (my529.com) for Texas residents, with investment options suitable for most investors.
Talk to us today about the benefits of a 529 Plan for your kiddos. We can even help you set one up!
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