Why College Funds Matter
College expenses such as tuition, fees, and living expenses continue to climb year after year. Without a plan in place, these costs can quickly impact your broader financial strategy.
Education planning allows you to:
- Prepare early and reduce reliance on loans
- Leverage tax-advantaged savings options
- Support multiple generations
- Align education costs with your retirement and estate goals
As fiduciary financial advisors, we aim to help you choose strategies that preserve flexibility and minimize tax burden while supporting the people you care about most.
College Planning Options
Every family’s education goals are unique. A 529 College Savings Plan is a widely used tool we can evaluate with you to help align your savings with future education costs.
529 College Savings Plan
A 529 plan is a state-sponsored investment account that offers tax advantages for education-related savings. While each state administers its own plan, you are not required to use your home state’s plan.
Key Features of 529 Plans:
- High Contribution Limits: Depending on the state, limits range from $235,000 to over $500,000 per beneficiary
- Qualified Expenses: Tuition, fees, room and board for higher education; up to $10,000/year for K–12 tuition
- Ownership & Control: The account owner maintains control and can change beneficiaries
- Flexibility: Funds can be transferred between family members once per year without penalty
529 plans are a widely used strategy for families in Colorado and beyond seeking to balance education goals with tax efficiency.
Additional Education Strategies
Beyond 529s and ESAs, Our Team may explore additional college savings options depending on your broader financial picture. These could include:
- Custodial accounts (UGMA/UTMA)
- Investment accounts earmarked for education
- Strategic use of cash flow and gifting strategies
- Coordination with financial aid planning
Every family is different, and so is every education plan. We aim to help you build a strategy that fits seamlessly into your financial goals, without creating unnecessary complexity.
Our Role in Your College Planning
At WealthClarity, college planning is offered as part of our comprehensive financial planning services or through hourly consultations. We take a collaborative, educational approach that may include:
- Reviewing current college savings accounts
- Comparing plan features across multiple states
- Assessing the tax impact of contributions and withdrawals
- Integrating education funding with retirement and estate planning
We serve clients locally in Lakewood, Colorado, and virtually across the country, helping families gain clarity and confidence around education costs.
Disclaimer(s):
- Prior to investing in a 529 Plan, investors should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits, such as financial aid, scholarship funds, and protection from creditors, that are only available for investments in such state’s qualified tuition program. Withdrawals used for qualified education expenses are federally tax-free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.
A Partner in Your Family’s Future
As fiduciaries, we are committed to helping you make informed, thoughtful decisions without pressure or obligation. Our mission is to empower families to support future generations while maintaining financial balance in the present.
Whether you’re saving for a newborn or nearing college enrollment, we’re here to guide you with clarity and care.
