Education Planning
FPS Financial can create a strategic funding plan to help you support educational goals without compromising your financial freedom.
Our Process:
- Define Education Goals – We clarify your objectives, whether college, vocational training, or private schooling.
- Project Total Costs – We estimate expenses including tuition, fees, books, housing, and related costs based on your timeline.
- Utilize Savings Vehicles – We can review education savings strategies, including 529 plans, which allow earnings to grow tax deferred and may provide tax-free withdrawals for qualified education expenses.
- Build in Flexibility – We evaluate multiple funding options—including custodial accounts, prepaid tuition plans, and alternative strategies—to adapt as needs evolve.
- Monitor Progress – We review your savings plan regularly to help keep you on track toward your goals.
Plan for education expenses alongside your other financial priorities.
The fees, expenses, and features of 529 plans can vary from state to state. 529 plans involve investment risk, including the possible loss of funds. There is no guarantee that an education-funding goal will be met. In order to be federally tax free, earnings must be used to pay for qualified education expenses. The earnings portion of a nonqualified withdrawal will be subject to ordinary income tax at the recipient’s marginal rate and subject to a 10 percent penalty. By investing in a plan outside your state of residence, you may lose any state tax benefits. 529 plans are subject to enrollment, maintenance, and administration/management fees and expenses.
