Learn the best strategies for tax efficiency and education contributions? Range advisors shine in helping families set aside money for educating loved ones. Why? Because kids grow up fast. Just not as fast as the cost of education.
How much you should save for college education?
*In-state tuition and fees at public four-year schools were $10,740 for the 2021-2022 academic year, according to the College Board. At private four-year schools, they were $38,070. Source: Nerdwallet
Personalized financial planning solutions for a fraction of the cost that traditional CFPs charge
How it works
Range can help you make the right planning decisions so you can afford the best education choices for the children in your life. Working with our team, you’ll understand where you stand today and get the advice you need to get or stay on track. Range will collaborate with you to:
Complete an education needs analysis
Review current education savings and contributions
Estimate funding success for your plan
Prepare and present any proposed changes (i.e. changing contributions, opening new accounts, reviewing potential tradeoffs, etc.)
Range will complete a full review of your education savings strategy when you get started and help you proactively monitor it along the way. However, if there's a significant change to your situation, or if questions arise, please contact us. Range does not charge for plan adjustments.
Education costs have significantly increased over the years, a trend that will likely continue. Your Range financial planners have access to a full suite of industry-leading analysis tools to determine if you’re on track for funding your education goal. Once we capture the data needed for your specific situation, we will populate your profile with the funding summary highlighted below. That way you can access the essential details of your education plan without having to comb through your multi-page comprehensive financial plan.
We do not recommend that you fund more than 50% of your education savings goal in a 529 plan. This is because, should your child either not attend college or receive scholarships, you could end up over-funding the account. Non-education related distributions from the 529 plan are subject to a 10% income tax penalty. Reduce your annual 529 contributions to $1,800/year ($150/month).
Education Plan Recommendation Example
Establish and fund a UTMA account
A UTMA (Uniform Transfer to Minors Act) account can hold physical assets, like real estate, art, or vehicles, in addition to financial assets such as stocks, cash, mutual funds, etc. Another benefit is that the UTMA usually allows you to delay when the account transfers to your child’s ownership. For example, Washington’s age of trust termination is 25, so you can specify that the assets don't transfer to your child until then, instead of at age 18. Once established, fund with $1,800/year ($150/mo).
Still have questions?
Set up a 1:1 call with our team to get a walk through of the product. Just take a moment to create an account and fill out our form. You can also call or text us now at 703-261-4164
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