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Dependable Midwestern Financial Advisors

College Savings Plans

What is a College Savings Plan?

Saving for college can be daunting.  Unlike other savings goals, like retirement, the average timeline for college savings is relatively short—eighteen years.   

That being said, there are a few methods and strategies to help save for college.

One of the go-to plans for many people is a 529 plan. This plan was originally intended only for post-secondary education, but it can now be used for K-12 education costs—up to an annual limitation of $10,000. They can also be used for student loan payments. Some things to keep in mind for a 529 plan:

  • Your home state’s 529 plan may be the optimal place to invest, for those of you who will receive a state tax deduction on contributions.
  • You can open a 529 plan through a broker or other financial advisor or directly from the plan. Investing directly is generally less expensive. Moreover, MFG does not sell a broker-directed plan.
  • 529 plan assets remain out of your taxable estate for those of you with estate tax considerations.
  • For those with concerns of overfunding or funds going unused, 529 plans allow you to switch the beneficiary at any time.
  • Monies invested in 529 plans grow tax-free as long as the funds are used for college or college-related expenses.

Alternatives to 529 plans are available to those who desire. Traditional savings accounts can be used, but are not well optimized in today’s investment environment and when coupled with a time horizon that is more than 5 years. Investment brokerage accounts provide added flexibility in certain cases as well as utilizing certain retirement accounts. 

What MFG holds as important above all else in college planning is careful analysis as to the various funding vehicles for the plan itself.  This promotes a discussion in regards to the sources of funding that have been provided, and what can be best executed upon in efforts to manage around goals and investment objectives.

How does Midwestern Financial Group create a College Savings Plan?

Our approach with a college savings plan is to help you calculate real numbers for your goal, and then create a savings plan and corresponding account that will help get you there. What separates us at MFG from others is that we put this singular savings objective in context with your other financial goals—providing the proper analysis to illustrate the benefits and conflicts with other goals. We sincerely believe that you deserve to be informed by an independent objective party. 

As parents ourselves, we know from experience that having a way to lay a solid foundation for your child’s future is a relief, to say the least. If we can provide that for you, in our capacity, we will. 

Midwestern Financial Group: Fiduciary Duty and Your Interests

If you’re looking for unbiased, goal-driven financial advice, you’ve come to the right place. At Midwestern Financial Group, we only have our clients’ best interests in mind. We don’t sell any products and we don’t take commissions, so you can be confident that our recommendations are based solely on what will help you reach your financial goals. Contact us today to learn more about how we can help you build your financial future with confidence!

Financial success starts with a plan. Let our team of experts help you map out a path to reach your unique financial goals. We offer tailored services and strategies that fit your individual needs, so you can make the most of your money. Contact us today to get started on your journey to financial security.

Fiduciary Advisors

How Our Process
Works
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1. Introduction

First, we get to know each other— what your life is like, what is most important to you, and what your hopes and dreams are. We’ll help you get to know us, too. We believe that honesty and trust are key to fostering a productive advisor relationship.

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2. Goal Setting

Next, well review your financial data to get a sense of where you are today and how we can improve your financial future. We brainstorm goals unique to you and assess what future liabilities may be present, so we can plan for those as well.

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3. Planning

Our advisors then prepare a recommended financial plan focused on hitting your personalized goals. Our fiduciary standard ensures that recommendations are in your best interest — not to sell financial products or generate commissions.

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4. Management

After we implement the recommendations, you can rely on us to constantly monitor outcomes and track the progress towards your goals. We’ll work together to adjust the plan for life changes or market returns.

Midwestern Financial Group
The dedicated team you need.
Joseph Jay Midwestern Financial FiduciaryAdvisor
Joseph Jay, CFA
Founder & Managing Partner
Patrick Campbell Midwestern Financial Fiduciary Advisor
Patrick Campbell
Founder & Managing Partner
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Trajan Wells
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