Mom and young son with a piggy bank

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

Apr 26, 20214/26/2021

Family Events

,

Learning Center

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.

 

 

 

 

 

 

 

130 years strong shield with words 130 years strong with stars

We’ve been helping to protect the financial future of families like yours, making a difference in hometowns across America and honoring our country since 1890. As a not-for-profit life insurance company, we put money back into the community. We’re here when you need us most.

Learn More About WoodmenLife

Connect With WoodmenLife

Fill out the form below to have your local Representative contact you about our life insurance and retirement products, or about getting involved in our local community service efforts.

To protect your privacy, we do not provide quotes over email.

  • Required
  • Required
  • Required ###-###-####
  • Required #####
  • Optional

This is a solicitation of insurance and an agent may contact you. By submitting the above request, I consent to receive phone calls from a licensed insurance producer on behalf of Woodmen of the World Life Insurance Society (WoodmenLife) and its affiliates at the phone number(s) above regarding WoodmenLife products and services. I understand that I can contact a Sales Representative directly to make a purchase.

Customer Service: 1-800-225-3108
Monday – Friday | 7:00 a.m. – 5:00 p.m. (Central Time)

© 2020 Woodmen of the World Life Insurance Society
Omaha, Nebraska

This is a solicitation of insurance and an agent may contact you.

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.

Benefits are available to members. An individual becomes a member by joining our shared commitment to family, community and country, and by purchasing a WoodmenLife product. These fraternal benefits are not contractual, are subject to change and have specific eligibility requirements.

Some fraternal benefits include additional membership requirements including length of membership, number of qualifying members in household and/or a qualifying event.

Check out the background of Woodmen Financial Services, Inc. on FINRA’s BrokerCheck.

Business Continuity Plan | Products are not available in New York and all products may not be available in all states. | Not all Representatives are licensed to sell all products.

Fraud, Ethics and EEO Reporting Hotline: 1-844-339-3053
WoodmenLife.ethicspoint.com

A+ Financial Rating

This company was issued a A+ (Superior) rating by the A.M. Best Company, click for additional details. WoodmenLife has been awarded a rating of A+ (Superior), the second highest ranking out of 15, for its financial strength and operating performance in 2020 by A.M. Best, an independent rating company that is nationally recognized for its objective reporting and rating of insurers.

International Use

This Site is not intended for access outside of the United States, including those individuals who reside in the European Economic Area (“EEA”). WoodmenLife makes no representation that materials on the Site are appropriate or available for use in locations outside of the United States, and accessing them from territories where their contents are illegal is prohibited. Those who choose to access the Site from outside of the United States do so on their own initiative and are responsible for compliance with local laws.