- Planning for Your Children's College Education
- Tax Savings Opportunities
- Big Picture Preview
- Fund Your Retirement Plans First
- Don't Agonize–Get Active
As long as it is in line with your priorities and your financial plan, you should typically fund your tax-advantaged retirement plans before funding your college investment program. Your financial future is important and that should be your primary focus.
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An Argument for Funding Your Retirement Plans First |
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Retirement Plans* |
College Investment Program |
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The investments you make toward most retirement plans are tax-advantaged.1 |
The investments you make toward college funding programs may not be tax-advantaged. |
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The income earned in most retirement plans is not taxed until you take it out at retirement.1 |
The income earned in college funding accounts may be taxed currently (there are some exceptions such as Series EE and Series I Savings Bonds, Education Savings Accounts, and Qualified Tuition Programs). |
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Retirement plan assets are not typically considered assets when you apply for financial aid. This increases your chances of getting financial aid. |
Assets accumulated in college investment accounts may decrease the chances of getting financial aid. |
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Having your financial future funded gives you the confidence to help your children in many ways, not just helping them find ways to pay for college. |
If you fund college and you're not making progress on your own financial future, not only are you giving up tax benefits, you're putting your own financial future at risk. |
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*IRAs, 401(k) plans, 403(b) plans, Keoghs, etc. 1 Contributions to a Roth IRA are not tax deductible. The Roth IRA offers tax-deferred growth of your investments. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 1/2 may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.
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Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Franklin Mint Federal Credit Union and Mint Wealth Advisors are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Mint Wealth Advisors, and may also be employees of Franklin Mint Federal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Franklin Mint Federal Credit Union or Mint Wealth Advisors. Securities and insurance offered through LPL or its affiliates are:
| Not Insured by NCUA or Any Other Government Agency | Not Credit Union Guaranteed | Not Credit Union Deposits or Obligations | May Lose Value |
*The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: NJ, PA, NY, DE, AZ, MI, FL, MD, TX, VA, GA, NC.
Financial Learning Center content created by TrueBridge, Inc. The information provided is based upon sources and data believed to be accurate and reliable. The content contained herein is intended for information and illustrative purposes only, should not in any way be construed as a personal recommendation, and should be used in conjunction with individual professional advice.
