SAVING FOR COLLEGE

Funding a post-secondary education for a child or grandchild is a life-long goal for many people. The cost of college tuition, however, has increased more than 40% over the last decade. One of the best ways to pay for the increasing cost of college tuition is by contributing to a state-sponsored 529 college savings plan.

The primary benefit of 529 plans is the tax-free growth of investments in the plan. An individual can make an after-tax contribution to a 529 plan, invest in a wide range of investment options and watch the investments grow over time. When it is time to pay for qualified college tuition expenses, contributions and investment earnings can be withdrawn tax-free.

We are frequently asked to provide our clients with recommendations on 529 plans. Our research and subsequent recommendations help clients answer questions such as:

• How much should I save each year in order to pay for my child's college tuition?
• Is a 529 plan the best way to save?
• Which college savings plan is best for me?
• How conservatively or aggressively should I invest this money?

Planning early is the best way to ensure the funds required to pay for a college education are there when you need them.

Learn more about Vista's recommended 529 college-savings plan.