July 2017 Letter
We hope you are enjoying the sunshine and warmth of the summer months. It’s that time of year to take vacation trips, visit the beach, and to catch up on leisure reading. While the school year is in the distant future, for many of us, paying for education is an immediate need.
Our July edition of Covington’s newsletter addresses the challenges of funding college education.
Tuition costs have risen significantly higher than overall inflation, medical care, energy, food, and even new vehicles. So how can you plan for your child’s or grandchild’s future education costs? We provide some suggestions, such as:
• Establish a 529 Plan
• Set up an Irrevocable Education Trust
• Establish a Crummey Trust
• Open a Uniform Transfers to Minors Act Account
• Make a loan to your grandchild or pay the tuition directly to the school
• Start early and use the power of compounding
These suggestions are certainly not all-inclusive but we cannot overly stress the importance of “starting early and using the power of compounding”.
Let us know if we can be of help or if you have any further questions.