Education Planning Services in MD, DC, PA, VA & DC

Prepare for Education Expenses with an Experienced Financial Advisor

With the costs of higher education rising, many parents and guardians of young children are taking action early on to ensure they can afford to send their kids to college. At Financial Consulate, we can advise you on estimated education expenses and help you explore your options for setting up a college fund. By taking a look at your overall financial picture, we’ll be able to determine the impact of your child’s education plan on your long-term finances.

For more information about education planning from Financial Consulate, please call us today. You can reach our Hunt Valley, MD office at 410-823-7283 and our Gettysburg, PA location at 717-334-1861.

The Importance of Education Planning

Earning a college degree can open the door to better jobs and a higher income potential. The problem comes when students graduate with a shocking amount of debt, many of whom carry this weight with them for the rest of their lives.

You can help prevent this scenario by starting an education fund for your child today. With help from Financial Consulate, we can assist you with this fund for tax-free earnings if used for qualified education expenses. Take a look at the various options available for creating a college fund.

Education Savings Accounts (ESAs)

Custodial accounts under the Uniform Gifts to Minors Act (UGMA) and Uniform Transfers to Minors Act (UTMA) allow you to create a college fund for your child. Individuals can establish ESAs on behalf of their children through a bank or broker, eliminating the need to work with an attorney to create a special trust fund. Family and friends can contribute to the fund with no limits, and the custodian can use the funds to purchase securities on behalf of the minor.

2503(c) Trusts

This type of minor’s trust is designed for beneficiaries under the age of 21. Donors can make tax-free contributions up to the annual gift tax exclusion amount. The beneficiary often has a narrow window around age 21 to withdraw the balance of the trust. Due to the complexity of 2503(c) trusts, you will most likely need the guidance of an attorney to ensure compliance with all the rules.

529 College Plans

Also called Qualified Tuition Programs, 529 plans are available in every state. As with ESAs, contributions to a 529 plan aren’t tax-free, but the earnings on the plan’s investments are if used for qualified education expenses. The two types of 529 plans include:

  • Prepaid tuition plans that cover costs at participating universities
  • College savings plans/investment accounts that students can withdraw from to pay expenses at educational institutions

Other Investment Products

There are rules about higher-income families participating in tax-advantaged college fund programs. Even if you don’t qualify, you may wish to pursue other investment products to help you plan for your child’s future. Financial Consulate will help you explore your options so you can make the proper economic decisions to fit your situation.

Call Financial Consulate for Education Planning Services

When it comes to helping you make wise investment decisions for your child’s future, the Financial Consulate is here to assist you. Our team is comprised of highly educated, certified financial experts with years of experience to draw from. We are a true fiduciary with fee-only services that ensure no conflicts of interest get in the way of providing you with the best financial advice.

Education planning is just one of the many financial management services we offer. Whether you’re starting a family, building your career, or approaching retirement, our experts can help you.

To team up with an experienced education planning firm in the Mid-Atlantic, please contact Financial Consulate today. We have offices in Maryland and Pennsylvania and serve the surrounding areas of Virginia, Washington, DC, and Delaware.