The Benefits

  • A variety of savings options
  • Some accounts are tax-deferred and offer tax-free withdrawals for qualified educational purposes
  • Beneficiaries may be changed without penalty
  • Contributions may be made by any family member, including grandparents, aunties and uncles, cousins, and more

Saving for an Education

Start early. Open savings and investment plans when your child is young. Our Financial Consultants can help you by informing you of some of the different tax-advantaged ways to save for your child's college education:

Section 529 College Savings Plan

This plan provides the greatest opportunity for saving for your child's education. Contributions are tied to the gifting exclusion limits — the limit is $14,000. Not only that, but a special rule allows you to make up to five years worth of contributions (or $70,000) in one year. The best part is the contributions are tax-deferred and may be withdrawn income tax-free for qualified educational purposes.

Coverdell Education Savings Accounts (CESA)

A CESA enables parents, grandparents, guardians to save for a child's future education. Your contributions are not tax-deductible, but all earnings and withdrawals are tax-exempt and free of withdrawal penalties as long as the withdrawals are made for qualified education expenses. More >

Custodial Account (UTMA or UGMA)

This account provides a wide variety of investment options and earnings. Up to certain limits, these accounts are taxed at the child's rate. Withdrawals may be made for any expenses that benefit the child – not just education expenses.

Getting Started

College and post-graduate education is a substantial expense. Our Financial Consultants will assist you in preparing for this expense. Before you meet with them you should:

  • Indicate what type of school your child is planning to attend (private or public) and the projected cost of attending that school
  • Identify the number of children you have who are planning to attend college and their age
  • Provide details on your financial situation and income

 

 

Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFGIS Insurance Agency), member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investments are offered. Registered address and phone number: American Insurance and Investments, 1215 Hunakai Street, Honolulu, Hawaii 96816, toll-free (888) 343-5534.

Not FDIC Insured

May Lose Value

Not a Bank Deposit

Not Bank Guaranteed
 

Not Insured by Any
Federal Government Agency

 

Click to view Cetera Investment Services Privacy Policy and other Important Information.

This site is published for residents of the United States only. Registered Representatives of Cetera Investment Services LLC may only conduct business with residents of the states and/or jurisdictions in which they are properly registered. Not all of the products and services referenced on this site may be available in every state and through every advisor listed. For additional information please contact the advisor(s) listed on the site, visit the Cetera Investment Services LLC site at www.ceterainvestmentservices.com.

 
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