Find out how to plan and invest effectively in higher education.

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It can be overwhelming to invest in college. We will help you navigate all of the investment options that can help you get to where you want to be. Please think of us as your college investing tutor.

Understanding the basics

You can make a better future for your loved ones by setting aside funds for higher education. However, it cannot be easy to decide how to invest.

You can save money by setting aside funds for education through vehicles such as the United Stock Brokers 529 College Savings Plan or Coverdell Education Savings account.

These accounts provide tax-deferred and tax-free growth to maximize your savings potential. Whatever approach you choose, it is important to remember that contributing even a small amount can make a difference in helping you achieve your goals more quickly.

 

Educational Investment Vehicles

For those looking for tax-efficient accounts that are specific to education, there are many options. There are three options: the USB College Savings Plan and the Coverdell Education Savings account.

529 Plans

These college savings plans are sponsored by states and offer flexibility and tax benefits that could make them a great investment choice. The benefits of a 529 plan differ from one state to the next. The details of the TD Ameritrade 529 College Savings Plan are as follows:

 

  • The account owner retains control even if the beneficiary does not want to go to college.
  • Asset allocations are based on risk tolerance and the child’s age.
  • Contribute $400,000 in a lifetime per beneficiary1
  1. Federal tax-deferred growth of earnings and contributions. Federal income taxes do not apply to funds withdrawn for qualified higher education expenses.
  • In-state residents may be eligible for tax benefits in some states.
  • You can invest as little as $15,000 per child or $75,000 in one year without federal gift taxes.

Find out more about the benefits and options available to you as a USB client.

Coverdell Education Savings accounts

These accounts allow you to withdraw federal tax-free funds and earn federal income on eligible expenses like tuition, books, computers, and room and board. It can only use 529 Plans for college. You can also use Coverdell Education Savings Accounts for secondary and elementary schooling. Account owners can contribute up to $2,000 per child yearly without minimum contribution. Explore more information to see if Coverdell ESAs might be right for you.

UGMA/UTMA Custodial accounts

Custodial accounts allow you to create assets for your loved ones or children’s future and also let you manage minors’ assets for their benefit. You will become the guardian of your account until the majority of the minors turn. You will open the account under the minor’s name. We will transfer all assets to the minor once they are old enough.

 

Compare Education Investment Vehicles