• Education Planning

    Your children are working hard to achieve. Make sure you’re ready when they do.
  • The College Board estimates the cost of higher education is increasing by six percent a year. At that rate by 2030 the cost of tuition, room and board at a private four-year college is estimated to top $115,000 a year. While state schools offer a somewhat lower-cost option, saving with tax-advantaged investing options has never been more important.

    One of our LPL Financial Advisors can identify investment strategies to help you save for the education of your child, or grandchild.

    Like retirement savings, the sooner you start, the more you’ll save and earn.

    College Education Savings 529 Plan
    The earnings accumulate as federal income tax-deferred – until funds are withdrawn to pay for qualified higher education expenses such as tuition, fees, room and board, books and supplies at an accredited post-secondary institution in the U.S. 

    • Investment earnings are federal income tax-free when they are used for qualified higher education expenses. Some states also allow for tax-deductible contributions
    • The account owner keeps control over the assets for the life of the account
    • Principal can be withdrawn without penalty if the beneficiary receives a scholarship or in the event of death or disability of the beneficiary. Ordinary income taxes would be owed on investment earnings and would be included in gross income

    As with all tax-related decisions, consult your tax advisor. Withdrawals for expenses other than qualified education expenses are subject to income tax and an additional 10% penalty on earnings. Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program. You should consider a 529 Plan’s fees and expenses such as administrative fees, enrollment fees, annual maintenance fees and sales charges, which will fluctuate depending on the 529 Plan invested in and the investments chosen within the plan. You should also consider the inherent risks associated with investing in 529 Plans such as investment return and principal fluctuation, which will also vary based on the investments made within the plan.

    Coverdell Education Savings Account
    With contributions made after tax, earnings accumulate tax-deferred. Distributions for qualified primary or secondary education expenses are not subject to federal income tax or penalties.

    • Pay for a child’s elementary, secondary and higher education expenses
    • Earnings and distributions are tax- and penalty-free, provided the funds are used for qualified education expenses and the amount of the withdrawal does not exceed the child’s annual education expenses
    • Earnings withdrawn for any other purpose are subject to income tax and may be subject to penalty tax 

    Work with one of our LPL Financial Advisors today to help you with an education plan and to discuss your particular risk tolerance level. 

    Contact us for more information about education planning. 

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INVESTMENTS AND INSURANCE: Are not deposits • Are not FDIC insured • Are not guaranteed by the Bank • May go down in value • Are not insured by any Federal Government Agency  

Securities offered through LPL Financial, Member FINRA / SIPC. Insurance products are offered through LPL Financial or its licensed affiliates.  

First Niagara Bank, N.A. and First Niagara Investment Services are not registered broker/dealers nor are they affiliated with LPL Financial.  

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