• Basics of Savings and Paying for College


    College Saving 101

    The kinds of investments that can help you accumulate a college nest egg are the same that can help with other investment goals. But because you need a plan designed specifically to pay for college education, there are a few twists and turns to take into account.

    Any plan you set up should be easy and economical to fund on a regular basis. Here are several options that fit the bill. Plus, we'll explain the tax breaks Uncle Sam offers when you're paying tuition.

    State-Sponsored College Savings Plans
    Both 529 and prepaid-tuition plans offer great tax advantages, but that's where the similarities end.

    Coverdell ESAs
    You get more control over your investments, but the amount you can invest is limited.

    Zero-Coupon Bonds
    This investment offers a predictable payout to coincide when college bills come due.

    U.S. Savings Bonds
    There are tax advantages, but not for everyone.

    Roth IRAs
    This retirement-savings account can serve as a fall-back fund for paying the college bill.

    Tax Credits for College Expenses
    Uncle Sam helps you defray some of the costs of getting a higher education.





McMullen Financial & Insurance Services, greg@mcmullenfis.com, (858) 922-0195

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