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College Planning Services in Connecticut

How Will College Fit Into Your Financial Plan?

Paying for college can require years of saving and decisions about how much to contribute, which accounts to use, where financial aid and borrowing may fit, and how to balance education costs with retirement and other family priorities.

At Capital Wealth Management, we help families prepare for future college costs, review their savings and funding options, and develop a college funding strategy that reflects their financial circumstances and goals.

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Planning for College Without Losing Sight of Other Goals

College planning begins with understanding what your family hopes to contribute and how that goal fits alongside retirement, everyday expenses, and other financial priorities.

We can help you estimate potential costs, review the resources you already have, and consider how much you may need to save. As college approaches, we can update the plan to reflect the schools being considered, available financial aid, current savings, and the amount your family is comfortable paying or borrowing.

College Planning Considerations:

✓ Estimated costs and years until college
✓ Current savings and future contributions
✓ College timelines for each child
✓ Retirement and other family priorities
✓ Potential financial aid and scholarships
✓ How costs may be divided among savings, income, and borrowing

Ways to Save and Pay for College

Many families use more than one resource to pay for college. The right combination depends on how much time remains, the flexibility your family needs, available financial aid, and how much you are willing to contribute or borrow.

529 College Savings Plans

Tax-advantaged accounts designed for qualified education expenses. Plan features, investment options, fees, and state tax treatment can vary.

Custodial and Other Savings Accounts

Custodial accounts, savings accounts, and taxable investments may provide additional options, although ownership, taxes, and financial aid treatment can differ.

Current Income and Family Contributions

Some expenses may come from household cash flow or be shared among parents, the student, grandparents, or other family members.

Financial Aid and Student Loans

Grants, scholarships, work-study, and student loans may help cover the difference between college costs and available family resources.

College Planning at Different Stages

The decisions involved in college planning may change as a child gets closer to enrollment. Starting early provides more time to save, while families with students already in high school may need to focus more closely on available resources and near-term costs.

1

Starting Early

Estimate future costs, review available savings accounts, and set a contribution strategy that fits with other priorities.

2

As College Approaches

Update cost estimates, review savings and other available resources, and consider how financial aid and borrowing may affect the funding plan.

3

During the College Years

Coordinate savings-account withdrawals, current income, financial aid, and borrowing as expenses arise each semester.

College Planning Is One Part of Your Financial Plan

Helping a child pay for college can be an important family goal, but it is often one of several. We help families consider education costs alongside retirement, cash flow, investments, and other financial needs.


Related Services

Financial Planning → Retirement Planning → Investment Planning →

College Planning Articles and Resources

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Paying Off Student Loans Early vs. Saving for Retirement

When you have flexibility in your budget, should you pay off student loans early or save for retirement?

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Talking with Your Teen About Student Loans, Debt, and Credit

Learn how to explain student loans, debt, and credit to your teen, and help them build financial literacy before college.

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Leftover 529 Funds? Turn Them into Retirement Savings

Certain unused 529 funds may be eligible for a rollover to a Roth IRA when specific requirements are met.

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Should You Save for Retirement or Your Child's College Education?

Explore factors to consider when balancing retirement savings with the goal of helping a child pay for college.

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529 plans come with fees and expenses, and there is a risk they may lose money or underperform. Most states offer their own 529 programs, which may provide benefits exclusively for their residents. Please consider whether the state plan offers any tax or other benefits. Tax implications can vary significantly from state to state. Tax-free withdrawals may be made for qualified education expenses. Otherwise, the deferred earnings portion may be subject to taxes and a 10% penalty. State tax treatment of K–12 withdrawals is determined by the state(s) where the taxpayer files state income tax.

There are multiple requirements regarding 529-to-Roth IRA conversions. Please note that the legislature may make changes to the 529 to Roth IRA provision and/or the IRS may provide guidance on the provision. As an example, it is not yet clear whether or not beneficiary changes, rollovers, or other account transfers will reset the 15-year time period. Consider waiting to complete the transaction until the IRS has provided clarification. In addition, not every state may consider the 529 to Roth IRA rollover to be qualified for state income tax purposes. Consider consulting with a tax professional prior to completing the conversion.

A Coverdell Education Savings Account (ESA) (formerly the Education IRA) allows any individual to contribute up to $2000 per year to a child under age 18 for the child's education. The money contributed grows tax deferred until distributed. If the distributions are used for qualified higher education expenses at an eligible educational institution, the withdrawals are tax free. This includes elementary and high school expenses. If the withdrawals are not used for qualified expenses, the earnings will be taxed and penalized 10%.

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.