Saving for Education

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About the author: Curtis holds an insurance license and a Series 66 securities registration as well as a degree from the University of Nevada, Reno. He has over 16 years of experience in the financial industry, helping others protect, grow and manage their wealth. Curtis helps clients create customized strategies for their portfolio based on their unique financial goals.

SAVING FOR EDUCATION - WHAT MAKES SENSE?

The one thing that is constant in life is change; it is something we know, regardless of how much we prepare, will occur in our lives.  Nearly two years ago, my wife and I had our first child, a daughter. While this change was anticipated and prepared for, there were countless things that we had not considered, and we had to adjust to.  Once my daughter came home from the hospital it still took about a week to get caught up with all the necessities that we needed. Eventually once everything was settled, we started to ask ourselves how we prepare for her next steps throughout her growth.

Having worked in the financial world for as long as I have, I knew I wanted to get something started for my daughter’s future education.  My wife and I wanted to make sure we were as prepared as possible to support our daughter down the road when she will start her education in her early adult life.  There are a few tools we were able to look into and ultimately decide what was best for us, but it took us a fair amount of time to research and figure out what we wanted in place for our daughter.

Many of my clients talk to me about the same thing, whether it is helping a grandchild or child, it is always a worthwhile discussion to understand the options of saving for future education.  There are many options available for people to consider in order to find the right tool that works for them and their family.  The tools differ but the key is to start saving, as basic of a concept as that sounds. Getting started regardless of the tool utilized is what is important.

Many people know of the 529 Plan which is widely utilized for saving for college.  There are also other plans available as well such as a Coverdell ESA.  Looking at these two tools alone you can see that there are various advantages and disadvantages of both.  The key is finding the path that makes the most sense for you and your family.  Also keep in mind, Nevada offers a prepaid tuition plan and there are also UTMA and UGMA accounts.  They all have their different nuances, and all have pros and cons associated with each.

One of my clients wanted to make sure that they had plans set up for all four of their grandchildren, so we sat down together and went over the pros and cons of the different plans they were considering.  It was important to them that they knew the pros and cons of what was available to them, so they could make the appropriate decision for their grandchildren.  After going over the various options and allowing them some time to process what may make sense for them, we were able to create a plan that worked for them regarding saving for their grandchildren’s education. 

We have had the opportunity to help our clients, who are interested in saving for education, discover and understand the tools that work best for them.  It is important to not only look at what plan makes sense but also the investment options, fees, and flexibility of each plan.  Working with a comprehensive wealth management advisor means you have someone on your team that will look at your entire financial picture, not just your investments.  It is all about working together to find the best path for every aspect of your financial life that is important to you and your family.

 For my wife and I, we were able to get our accounts established for our daughter, and ultimately, we feel we have started a good foundation for her future education.  It was important to us that she have flexibility and resources to help her on her educational journey whether she wants to be a mechanic, astronaut, firefighter or veterinarian.  It is extremely important for us to make sure, for our daughter, that the world is her oyster and that we can help her along her journey to become what she dreams to be.  Until then, we will enjoy changing the diapers and watching her grow, because time sure does go by awfully fast.


Based in Reno, NV, Cornerstone is for individuals and families looking to grow wealth, protect and preserve their life savings, and plan for the distribution of their estate in a tax-efficient manner through a tailored strategy. Schedule a time to discuss your financial goals with us.