College Planning

College Planning

Saving for education costs can be a daunting task.  At Sgroi, we can help you anticipate this expense with some options that make saving for college an easier endeavor, allowing your student to have more choices in his/her educational experience.  Take a look at our education investing and saving options:

529 Plan

With a 529 plan, parents or grandparents can save for college (or another higher educational institution), much like a 401 (K) or IRA, by investing your contributions in mutual funds or similar investments. If you decide to use a 529 savings program, the full value of your account can be used at any accredited college or university in the country (along with some foreign institutions). 529 plans also offer appealing income tax breaks. Some contributions may be tax deductible on your federal tax return, your investment grows tax-deferred, and distributions to pay for the beneficiary's college costs come out federally tax-free.  Ask a Financial Advisor at Sgroi to help you with a 529 plan for the higher education of the student in your life!

ESA

Similar to a 529, a Coverdell Education Savings Account (ESA) is a tax deferred account that is used to save for education costs.  With an ESA, you are allowed to make an annual non-deductible contribution to a specially designated investment trust account. Your account will grow free of federal income taxes, and if all goes well, withdrawals from the account will be completely tax-free as well. You will need to meet certain requirements in the years you wish to make the contributions, and in the years you take withdrawals.  Our Financial Advisors at Sgroi are well versed on all means of saving for education and can help you navigate your ESA to provide for the future of your student’s education.