The best way to save for college depends on your individual circumstances and financial goals. At David Lerner Associates, we offer a variety of solutions to help you plan:

• 529 College Savings Plans: 529 plans are tax-advantaged savings accounts specifically designed for education expenses. They offer various investment options and allow your savings to grow tax-free. When used for qualified educational expenses, withdrawals are also tax-free. Each state offers its own 529 plan, and you can choose any state’s plan regardless of where you live. Research different plans to find one that suits your needs.
• Coverdell Education Savings Accounts (ESAs): ESAs are another tax-advantaged savings option for education expenses. Contributions to ESAs are not tax-deductible, but the earnings grow tax-free, and withdrawals are tax-free when used for qualified educational expenses. However, there are contribution limits and income restrictions for ESA eligibility.
• Permanent Life Insurance: Whole life, universal life, or variable life insurance can also be used for college savings. These policies have a cash value component that grows over time and can be accessed to pay for college by either borrowing or withdrawing those funds. Permanent life insurance policies do not have restrictions on how the funds can be used and do not count as an asset on the Free Application for Federal Student Aid (FAFSA).