Financial Advisor Christopher Fess of Frisco, Texas has more than 15 years of experience assisting clients in making wealth management decisions. One of the ways Christopher Fess assists clients is by choosing the right college fund for their children.
Parents who have decided to finance their children’s education have different options. One of the most common educational funds, the 529 plan is authorized through the state, state agencies, or educational institutions and includes two investment options. The first option is the pre-paid tuition plan which allows parents to purchase credit hours at current rates for the child’s future education. Then, there is the education savings plan, which allows parents to set up an investment account that can be used to pay for a child’s tuition, mandatory fees, and housing. The advantage is the money grows in the account tax-free, and taxes are assessed if the money is used on qualifying expenses.
One other education funds include the Coverdell Education Savings Account which enables investors to use the money for expenses that occur at any time beginning in elementary school and ending in college. This plan is more flexible and can be managed the teens as soon as they reach the age of 18.
Christopher Fess 