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Savings Plans for College: Preparing for Your Child’s Future

Apr 26, 20214/26/2021

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Why is it important to start looking for savings plans for college as early as possible? Achieving a big financial goal can seem less overwhelming when you put steps in place to reach it little by little over time. When it comes to helping your children pay for college, you can do this by putting a savings plan for college in place. By saving for college today, you can help provide the financial resources they need to get a higher education.

The Choice is Yours

As you begin looking at different approaches to college savings plans, there are many options available. Choosing which is best is up to you.

Traditional College Savings Plans

There are several common methods of saving for college, and the more traditional ways include purchasing U.S. Savings Bonds, opening savings accounts, creating a taxable investment account, building cash value in a life insurance certificate, and purchasing annuities.

Education-Specific Savings Plans for College

Along with more traditional college savings plans, you can choose to open accounts designed specifically to save for college.

For example, a 529 College Savings Plan is a tax-advantaged way to save for higher education. This type of plan offers specific benefits to potentially grow your college savings.

With a 529 College Savings Plan:

  • Money may be used for “qualified education expenses” (see below)
  • Earnings grow tax-deferred
  • Distributions are tax-free2 when used for qualified post-secondary education costs
  • Flexible spending options are available
  • Potential state tax deductions are available

Educational expenses most commonly paid for through a 529 College Savings Plan are:

  • Tuition
  • Room and board
  • Books
  • Supplies and equipment
  • Student loan repayment  up a lifetime maximum of $10,000

Every state has a 529 plan, but you may be able to use a plan in a state other than where you live or where your child goes to school3.

A second option is the Coverdell Education Savings Accounts. These accounts are another way to save for college, as well as primary and secondary education expenses. Total contributions cannot surpass $2,000 in any year.

Which is right for you?

Woodmen Financial Services, Inc. can help you find a savings plan for college that fits with your future goals. Talk with your local WoodmenLife Financial Representative to discuss your options.


  1. Loans against the cash value of your certificate will accrue interest, reduce the death benefit and reduce available cash value. A loan, withdrawal or surrender may be a taxable event. For tax advice, consult with your professional tax advisor. Excessive loans or withdrawals may cause the policy to lapse.
  2. You should consider the investment objectives, risks, charges, and expenses associated with 529 College Savings Plans before investing. More information about 529 College Savings Plans is available in the Enrollment Handbook. You should read this carefully before investing. Please contact your Financial Representative for an Enrollment Handbook
  3. By investing in a plan outside of your state of residence, you may lose any state tax benefits. Non-qualified withdrawals are subject to federal and state income tax, plus a 10% penalty. 529 College Savings Plans are subject to enrollment, maintenance, management fees, and expenses.
Securities are offered through Woodmen Financial Services, Inc. (WFS), 1700 Farnam Street, Omaha, NE 68102, 877-664-3332, member FINRA/SIPC, a wholly owned subsidiary of Woodmen of the World Life Insurance Society (collectively “WoodmenLife”). Securities other than the WoodmenLife Variable Annuity are issued by companies that are not affiliated with WoodmenLife. This material is intended for general use with the public. WFS will not provide investment advice for any individual or any individual situation, and you should not look to this material for any investment advice. WFS has financial interests that are served by the sale of these products or services.








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Securities are offered through Woodmen Financial Services, Inc., 1700 Farnam Street, Omaha, NE 68102, member FINRA/SIPC, a wholly owned subsidiary of Woodmen of the World Life Insurance Society (collectively “WoodmenLife”). Securities other than the WoodmenLife Variable Annuity are issued by companies that are not affiliated with Woodmen of the World Life Insurance Society.

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