Headquartered in South Jordan, Utah, Allegis Wealth Advisors offers clients unbiased financial advice and services. Allegis Wealth Advisors provides advisory services through its Registered Investment Advisor Allegis Investment Advisors. Among its services, the company has developed investment strategies specifically for college saving.
Funding a child’s college education can be a challenging endeavor, considering the cost of a private college today is $176,000 on average ($78,000 for state universities), and by some estimations will at least double in the next 18 years. There are, however, a number of financial vehicles specifically designed to encourage college savings, including 529 plans. A majority of states sponsor their own 529 plans, and many of those offer tax breaks or credits in addition to the federal tax benefits. Easily the most recommended option for college saving, a 529 plan allows for tax-deferred growth as well as tax-free withdrawals when used to pay for qualified higher-education costs. Another similar option is a Coverdell education account.
Withdrawing funds from either a traditional or Roth IRA to cover college expenses is highly discouraged, given the possible tax ramifications, as are prepaid tuition plans, which generally apply only to in-state schools.