College Funding Strategies

College Funding Strategies for Individuals from MCB

When most people think about sending their children to college today, the costs can be daunting. College tuition is on a steady rise of roughly seven percent annually. College planning is important, but it should not be done in detriment to your own retirement – remember, loans can be taken for education. Striking the right balance isn’t something that you can do yourself easily, though, and that’s where MCB Business Consultants come in.

At MCB, we understand the different types of college savings plans available, and can help you choose the one that’s right for you. We’ll also help you navigate through financial aid and loans, as well as scholarships, so that when it comes time for you and your child to pay for their education, it will be less stressful for you. We’re pleased to help parents and students learn about smart college planning, and help you make a smooth transition when the time comes.

MCB can help you understand the various college savings plans available.

It isn’t always easy to know the best way to save for college. MCB Business Consultants can help you understand the different college savings plans and help you choose which one is right for you and your family. We’ll work with you on:

  • 529 college savings plans: These plans grow tax deferred, and some plans allow for tax-free fund withdrawal, as long as the money is used for qualified higher education expenses. Unlike other plans, 529 plans can allow for sizeable contributions.
  • Non-qualified investment accounts: Distributions can be taken without penalty, even if the monies are used for something other than education. These accounts can be used to start a business, as a down-payment on a home, for a wedding, or as a jump-start toward retirement. The downfall of one of these accounts is there is no tax deferral available.
  • UGMA/UTMA: These accounts are similar to non-qualified investment accounts, but the income generated from the investments is taxed to the minor. One main drawback of this type of account is that the child gets all the money at the age of majority (in most states, 18 or 21).
  • Permanent life insurance: The cash value of a policy such as this is flexible and can be used as much as needed. Like the 529, cash value accumulates tax-deferred, and if managed properly, withdrawals are tax-free. In addition, there is a death benefit associated with this type of policy. The downside is, growth potential is not as large as with equity-based investments and a positive return can take some time.

MCB can help you understand college plans, and we can help you find the college planning solution that works best for you and your family. To learn more about the services we provide, contact us online using our convenient form, or feel free to call our Buffalo, Syracuse or Utica office. We will be more than happy to schedule a time to meet with you and help you with your college planning needs. We look forward to serving you and your family.