Start Early, Save Big: The Long-Term Benefits of a College Savings Plan

Start Early, Save Big: Why Time Is Your Greatest Ally in College Savings

Planning for your child’s college education can feel overwhelming, but the secret to success lies in one simple principle: start early. The earlier you begin saving, the greater the benefits of compounding growth, tax advantages, and financial peace of mind. A fiduciary financial advisor can guide you through this process, ensuring your college savings plan aligns with your goals and financial situation.

The Power of Compounding Growth

Compounding is one of the most powerful financial tools available, and it’s particularly impactful when saving for college. Here’s how it works: when you earn returns on your savings, those returns are reinvested, allowing your money to grow exponentially over time.

For example:

• Starting at Birth: Saving $200 per month in a tax-advantaged 529 plan could grow to over $96,000 by the time your child turns 18, assuming a 6% annual return.
• Starting at Age 10: If you wait until your child is 10, the same $200 monthly contribution would grow to just $26,000 by age 18.

Key Takeaway: The earlier you start, the more time your savings have to grow.

Tax Advantages of a College Savings Plan

One of the primary reasons families choose 529 plans or Education Savings Accounts (ESAs) is for their tax benefits. These accounts are designed to help families save more by reducing tax burdens.

529 Plan Tax Benefits:

• Contributions grow tax-deferred.
• Withdrawals for qualified education expenses (tuition, books, room and board, etc.) are tax-free.
• Some states offer tax deductions or credits for contributions.

ESA Tax Benefits:

• Like 529 plans, ESA earnings grow tax-free.
• ESA funds can be used for K-12 expenses in addition to college costs.

Working with a fiduciary financial advisor ensures you fully understand and leverage these tax benefits to maximize savings for your family.

Flexibility to Meet Diverse Education Goals

College savings plans like 529s and ESAs are designed with flexibility in mind, allowing you to adapt to your child’s evolving needs:

• Qualified Expenses: Cover tuition, books, supplies, and even room and board.
• Alternative Paths: Use 529 funds for apprenticeship programs or up to $10,000 to repay student loans.
• Multiple Beneficiaries: Unused funds can be transferred to another family member without penalty.

Avoiding Future Student Debt

Starting early doesn’t just save money—it also protects your child from the burden of student loan debt. The average U.S. student graduates with nearly $30,000 in debt, which can take decades to repay. By saving early, you can help your child graduate debt-free and set them up for financial success.

Why Work with a Fiduciary Financial Advisor?

Navigating college savings plans can be complex. A fiduciary financial advisor acts in your best interest, offering personalized strategies to optimize your savings. They can:

• Help you choose the right plan, such as a 529 or ESA, based on your goals.
• Ensure you’re contributing effectively while managing other financial priorities.
• Monitor and adjust your plan to align with changes in your financial situation or tax laws.

Take Action Today: Secure Your Child’s Future

The best time to start saving for college is today. The earlier you begin, the more you’ll benefit from compounding growth and tax advantages. Whether you’re considering a 529 plan, ESA, or another savings option, a fiduciary financial advisor can help you create a plan tailored to your family’s unique needs.

Call to Action:
Don’t wait—schedule a consultation with a fiduciary financial advisor today. Together, you can create a smart college savings strategy that ensures your child’s future is bright and debt-free.

Global View Capital Management (GVCM) is an affiliate of Global View Capital Advisors (GVCA). GVCM is a SEC Registered Investment Advisory firm headquartered at N14W23833 Stone Ridge Drive, Suite 350, Waukesha, WI 53188-1126. 262.650.1030. Ryan Peca is an Investment Adviser Representative (“Adviser”) with GVCM. Additional information can be found at www.adviserinfo.sec.gov Global View Capital Insurance Services (GVCI) is an affiliate of Global View Capital Advisors (GVCA). GVCI services offered through Experior Financial Group, ASH Brokerage, and/or PKS Financial. GVCI is headquartered at N14W23833 Stone Ridge Drive, Suite 350, Waukesha, WI 53188-1126. 262-650-1030. Ryan Peca is an Insurance Agent of GVCI.