Saving Taxes

Introduction

Most people make investments with an eye toward saving on taxes, and college investments are no exception. A Coverdell Education Savings Account is one vehicle in which earnings grow tax-deferred, and are never taxed if they are used for the beneficiary's qualified education expenses.

Qualified tuition programs are generally tax-favored, and make it possible for you to make contributions now toward education expenses in the future. Interest in Series EE and Series I Savings Bonds grows tax-deferred, and may never be taxed if the bonds are redeemed in a year when you pay your child's college tuition.

You also need to determine who should own the investments that are going towards your child's education. That decision will be made, in part, based on your tax bracket, whether or not you qualify for financial aid and your net worth.
Share Article:
Add to GooglePlus

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. Premier America Credit Union and Premier America Investment & Retirement Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Premier America Investment & Retirement Services, and may also be employees of Premier America Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of Premier America Credit Union or Premier America Investment & Retirement Services. CA Insurance License #0759204, TX Insurance License#1643255.

Securities and insurance offered through LPL or its affiliates are:

Not Insured by NCUA or Any Other Government Agency Not Credit Union Guarantee Not Credit Union Deposits or Obligations May Lose Value

BrokerCheck