Broker Check

College Cost Bracket

Are you having fun watching the NCAA Men’s basketball tournament this year?  At Baird, we are definitely enjoying the games, and we congratulate IU for making the field this year!  But as Wealth Advisors and parents ourselves, we also can’t help thinking about the potential cost of college.

Many of our clients have already begun the process of saving for future college expenses, and have established a 529 account.  Indiana residents who contribute to the Indiana College Choice Advisor program benefit from a number of excellent features:  tax deferred growth, tax free withdrawals for qualifying educational expenses, enhanced owner control, and an Indiana state income tax credit of up to 20% of the amount contributed (up to a maximum of $1,000 per year).*

But are you investing enough to make college a reality?  The link below lists the schools who make up this season’s tournament bracket, and a projection of the total four year tuition at each school beginning approximately eight years from now (assuming 4% annual inflation). 

At the very least, this is a fun way to address an important issue; feel free to pass the information – as well as our name and number – on to a friend or family member.  If you like, we can use your current account balance and savings rate to estimate how much you will have accumulated when it’s time to start writing those checks!  Then you will have a better ability to plan and adjust your investment schedule to meet your goals.  Just call our office to get the process started.

*Baird does not give tax advice. Consult a tax or legal advisor regarding your specific circumstances. Under the current law, qualified expenses include tuition, room, board (on and off campus), books and supplies. Earnings on non-qualified distributions will be subject to income tax and a 10 percent federal penalty tax. College savings plans offered by each state government vary significantly in features and benefits. The optimal plan for each investor depends on his or her individual investment objectives and circumstances. If your state, or your designated beneficiary’s state, offers a 529 plan, you may want to consider what, if any, potential state income tax or other benefits it offers, before investing. Investors should carefully consider the investment objectives, risks, charges, and expenses of the 529 plan and underlying funds before investing. This and other information may be found in the plan’s Offering Statement. To obtain an offering statement or prospectus, please contact your Financial Consultant. Please read the prospectus and Offering Statement carefully before investing. VK2022-0314