Individual Investors - College Planning

Children grow up fast--are you saving fast enough for their education? Whether you are putting money away for a child or grandchild, college will come around sooner than you think. That is why it is never too early to start thinking about education savings.

With college costs rising each year, starting to save sooner can help you be better prepared when later comes. For a child born today, college expenses are projected to range from $204,000 (public four-year college) to $416,000 (private four-year college).* Getting started now can help make life easier for both you and your student-to-be.

Ryan Beck can help you establish an effective college saving strategy that includes such planning vehicles as 529 College Savings Plans**, Coverdell ESAs*** or UGMA/UTMA Custodial Accounts. A Ryan Beck Financial Consultant can work with you to help you find the right investment--and help you do the best for your child or grandchild.

To find out more, contact Ryan Beck.

* Source: College Board 2004-2005

**The value of an investment in a 529 savings plan will fluctuate and, when withdrawn, may be worth more or less than its original cost. Investments in 529 savings plans are not insured or guaranteed. Withdrawals used for expenses other than qualified education expenditures may be subject to federal and state income taxes and a 10% penalty tax.  Unless Congress takes action, earnings withdrawn from a 529 plan account after 2010 to pay qualified higher education expenses will be subject to federal income tax. Neither Ryan Beck nor its Financial Consultants provide tax advice. Please consult your tax advisor prior to making a decision, since 529 savings plans differ from state to state. Please read the program description carefully before making an investment or sending money.

***The yearly ESA contribution is $2000 per year, per child, with the $2000 going against the $12,000 annual gift limit.