529 college savings plan documents laid out during a Dallas retirement planning discussion

Do You Need a 529 Plan In Your Dallas Retirement Plan?

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If you’re considering a 529 plan as a part of your independent financial planning, our Dallas retirement financial advisor is here to answer your questions. We know the importance of including college tuition in your retirement investment portfolio while also recognizing the many avenues available to prepare for your child’s future educational costs. Keep reading to gain a better understanding of a 529 plan and if it should be a part of your Dallas retirement planning or Fort Worth retirement planning portfolio.

What Is a 529 Plan?

Also known as a Qualified Tuition Plan, a 529 Plan is designed to help you save for future education costs with tax advantages. If you open a 529 Plan as a part of your retirement investment, you have two options:

  • Prepaid Tuition Plan: these plans allow you to set money aside for your beneficiary’s future college tuition based on the current tuition rate. It cannot typically be used to cover room and board and is usually reserved for in-state and public institutions, as this type of 529 Plan is most often sponsored by state governments. 
  • Education Savings Plan: Unlike a Prepaid Tuition Plan, an Education Savings Plan can be used to cover room and board in addition to tuition at most universities, in- or out-of-state. Some even allow you to cover the cost of tuition for colleges outside of the U.S. While there is greater flexibility regarding the terms of your investment and how it can be spent, you will not reap the same benefits available in a Prepaid Tuition Plan regarding tuition costs at the time of investment.

Should You Include a 529 Plan Into Your Retirement Investment?

Because of their significant tax benefits, our Dallas financial advisors and Fort Worth financial advisors recommend some version of a 529 Plan to our clients with one or more college-bound beneficiaries. Even though your contributions are not tax-deductible, withdrawals can be made tax-free. Additionally, the account owner is the only person entitled to the invested funds, so you can be sure the money is being spent as it is intended. And best of all, anyone can qualify to open a 529 Plan as a part of their retirement investment portfolio.

Consider Opening A 529 Plan With Our Independent Financial Advisor

If you have more questions regarding 529 Plan options and which one may be right for your Dallas retirement planning or Fort Worth retirement planning, now is a good time to speak with our independent financial advisor and take this important first step in planning for your child’s educational future. The sooner you begin this process, the better prepared you will be to cover future tuition costs, while also having enough set aside for your own retirement investment.

Trust Us With Your Dallas Financial Planning and Fort Worth Financial Planning Needs

We know that saving for the future is an important part of securing a comfortable lifestyle upon retirement, so give us a call and meet with our Dallas financial advisor or Fort Worth financial advisor today. We’d be honored to discuss the best options for you and your future while making the most of your retirement investments.