529 college savings plan, UTMA, and other college funding options.

As a financial planner in Columbia, MO, I frequently am asked questions about how to smartly fund a college education through things like 529 college savings plans. Many times, parents are trying to figure out how to move their money around to prepare for more than one child going off to college.

Preparing to fund a college education should include a balance of where to place money, and how to get money specifically for college (like loans, scholarships and grants.) We’ve recently written an article that focuses on UTMA accounts, yet it is only one of many ways to place money aside to fund an education.

What is a 529 College Savings Plan? – These are investment plans customized per state—with unique advantages and disadvantages depending on how the parents intend to use them.

UTMA (Uniform Transfers To Minors Act ) – This is a type of account that can hold and invest money and is held by a custodian for the benefit of a minor until they reach a certain age. Again, it comes with its own pros and cons (mostly cons!).

Other Accounts – Coverdell Education Savings Accounts (ESA), Roth IRAs, & Trusts.

When used in specific financial situations, each of these varied account types can be an appropriate source for future college expenses.

As a financial planner specializing in comprehensive financial planning, Tim enjoys helping clients in Columbia, MO with both college funding and other financial issues.

If you would like to learn more about this and other personal topics serviced by financial planners please contact us at 573-447-7007. Clarity Financial, LLC is a fee-only financial advisory firm in Columbia, MO. Appointments are welcome and initial consultations are free. 

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This article is the property of Clarity Financial LLC.