WE Plan

Annual Back to School Letter

August 27, 2018

Dear Clients and Friends,

Well, another school year has begun which means this is the time of year we like to remind you of some valuable information and important tips. As always, please call us with any questions regarding the information below as well as ways to plan for your child’s or grandchild’s education.

Florida Prepaid

The Florida Prepaid College Plan’s enrollment period opens in late September. However, if you sign up for a plan before September 2nd, they will waive the $50 enrollment fee and you don’t begin to make payments until 2019. For more information click on their link below:


Investment Plans (Section 529)

Some of you may prefer to use a 529 savings plan for some or all your college savings due to the greater control you can have over how the funds are invested. These plans became more flexible because of the 2018 Tax Cuts and Jobs Act.  You may now use the funds in these tax advantaged vehicles to pay for K-12 tuition in addition to college/university expenses.

Important Tips

Below are a few tips to keep in mind whether you are just starting to plan for college or if you child/grandchild is heading off to college soon:

  • Start saving early – the sooner you begin saving the better your chances are of reaching your savings goal. College planning is an important part of a well-designed financial plan!
  • Don’t mortgage your retirement to save for college. There are alternatives to paying for college, but you will stop working one day and you will need to have savings to maintain your lifestyle during your golden years.
  • Before your child/grandchild becomes a huge success, make sure he/she has a solid understanding of:
    • Budgeting – design a realistic spending plan
    • Debt – if student loans are necessary, make sure the student understands what it will mean after graduation. Is the potential compensation that can be expected enough to service the debt incurred?

Your WealthEngage team is here to help you, but we are also happy to speak with your future college scholar to get them on the right track. Please call or email us with questions.  Have a great year!

Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person's situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. As with other investments, there are generally fees and expenses associated with participation in a 529 plan. There is also a risk that these plans may lose money or not perform well enough to cover college costs as anticipated. Most states offer their own 529 programs, which may provide advantages and benefits exclusively for their residents. The tax implications can vary significantly from state to state.

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