College Fee Funding
At The Fiduciary Firm, we understand that funding a child’s education is one of the most significant financial goals for many families. While 529 plans are often seen as the go-to college savings vehicle, they may not always be the best option for everyone. That’s why we specialize in helping families explore alternative strategies for funding college that can provide more flexibility, greater tax advantages, and a customized approach to fit their unique financial situation.
As a fiduciary, our goal is to ensure we find the most effective solutions to meet your financial objectives, while taking into consideration your family’s long-term goals and needs.
Your Student Aid Index (SAI) Number
The Student Aid Index (SAI) is a critical number that determines the level of federal financial aid a student can receive, including grants, loans, and work-study programs. Understanding how SAI works and how it is calculated can help you make strategic decisions to maximize your child’s eligibility for financial aid and scholarships.
At The Fiduciary Firm, we help families navigate the complexities of the financial aid process, including understanding and optimizing their SAI to secure the best funding options for college.
Why a 529 plan may not be enough.
Some are expensive, complex and limited. 529 plans are specifically designed for educational expenses, and although they offer tax-free withdrawals for qualified expenses, they can’t be used for other financial goals without penalty. If your child doesn’t attend college or receives scholarships, you’re stuck with the decision of either using the funds for other educational purposes (like grad school) or paying a penalty and taxes on non-qualified withdrawals.
Life Insurance as a Funding Vehicle.
Cash value life insurance (like whole life or universal life) can be used as an alternative to traditional college savings. It allows you to accumulate cash value that can grow tax-deferred, and you can borrow from the policy to pay for college expenses.
- Pros: Cash value growth is tax-deferred, loans against the policy are tax-free (as long as they’re repaid), and the policy provides a death benefit.
Why use The Fiduciary Firm?
1. Flexibility and Financial Aid Considerations
We ensure that your funding strategy takes into account financial aid considerations. We’ll help you make informed decisions that protect your eligibility for financial assistance, ensuring that you don’t inadvertently reduce your child’s ability to qualify for need-based aid.
2. Ongoing Monitoring and Adjustments
College funding is a long-term project, and your financial situation may change over time. We offer ongoing support to monitor your strategy, make necessary adjustments, and ensure that you stay on track to meet your college funding goals.
3. Peace of Mind
With the guidance of The Fiduciary Firm, you can have peace of mind knowing that you’re making the best decisions for your family’s future. We handle the details so you can focus on what matters most—your child’s education and your financial well-being.
Download the free guide:
Our ultimate checklist for College Fee planning provides useful tips & directions on pitfalls to avoid.
Looking for help to fund college?
Don’t leave your child’s college funding to chance. Contact The Fiduciary Firm today to explore alternative strategies to 529 plans and develop a tailored plan that fits your financial goals. Our team of experts is here to guide you every step of the way.