Wealth Management
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College Savings Solutions

01

Tax Advantaged College Savings Strategies

It’s never too early to start saving for college, especially with the price of higher education increasing by the year. However, there are more options than stowing money away in a traditional savings account.

HilltopSecurities’ experienced advisors will help you create and maintain a customized plan to help maximize your savings for your future graduate. Here are two common, tax-advantaged options you should consider: a 529 savings plan and the Coverdell Education Savings Account (CESA).

02

Tax Advantaged Options

Also known as a qualified tuition plan, the college 529 savings plan is sponsored by states, state agencies or educational institutions and is not subject to federal tax (and in some cases, state tax). With this method of saving, investors contribute a predefined amount to the plan. The plan then invests these contributions in a variety of securities products, including stocks, mutual funds, bond mutual funds, money market funds and even portfolios that vary by risk threshold as the student approaches high school graduation. Other conditions apply.*

*Investors should consider the investment objectives, risks, and charges and expenses associated with 529 plans before investing. More information regarding 529 plans is available in the issuer’s official statement. Please read the official statement carefully before investing. Investors should also consider, before investing, whether their home state or the home state of the beneficiary offers any state tax or other benefits that are only available for investments in such state’s qualified tuition program. Other states may include financial aid, scholarship funds, and protection from creditors.

This option is a trust or custodial account that is set up solely for paying a beneficiary’s tuition and expenses – also referred to as qualified education expenses. A CESA must be established on behalf of a student before they turn 18 and guardians can contribute to the account via cash deposits. Once set, the CESA beneficiary is eligible to receive tax-free distributions to pay for qualified education expenses. Other conditions apply.

03

Speak With a HilltopSecurities Professional

Each college saving option has benefits and drawbacks and may have a
different impact on your taxes and eligibility for financial aid. To determine which options work best for your circumstances, you should consult with a tax
or financial advisor.

HilltopSecurities’ trained and knowledgeable financial advisors can help guide you through this process. We’ll help you build a college savings plan that makes the most of your resources and meets the unique needs of you and your
future graduate.

CONTACT
To explore your options and start building a college savings fund today, contact a HilltopSecurities financial advisor near you.
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