Investment advisory services offered through Sharma Associates, Inc.
Securities offered through Resource Horizon Group, L.L.C., Member FINRA,  SIPC
1350 Church Street Extension 3rd. Floor, Marietta, GA Phone: 770-319-1970
Sharma Associates, Inc. and Resource Horizons Group, L.L.C. are not affiliated.

Planning for College Education

Options and choices for saving for College Education:

1. 529 College savings plan
2. Improved Education IRA
3. UGMA /UTMA Accounts

What is a 529 plan?

It's an investment plan operated by a state designed to help families save for future college costs. As long as the plan satisfies a few basic requirements, federal tax law provides special tax benefits to you, the plan participant. (Section 529 of the Internal Revenue Code.)

It's up to each state to decide whether it will offer a 529 plan or not.  Every state now has at least one 529 plan available.

New improved 529 Plans:

There are four major advantages of 529 plans:

1. You get some nice income tax breaks. Investments grow tax-free as long as your money stays in the plan, or when withdrawal is taken to pay for the beneficiary's college costs.
2. You the donor stay in control of the account. With few exceptions named beneficiary has no right to the funds. You are the one who calls the shots. You decide when withdrawals are taken. Most plans even allow you to reclaim the funds for yourself any time you desire, no question asked. Each state is required to assess a penalty.
3. Provides very hands off way to save for college. Only you decide which 529 plan to use. You complete a single enrollment form and make your contribution or sign up for automatic deposits. Then you can relax and forget about it, if you like. The ongoing investments of your account is handled and managed by the plan and not by you. Plan assets are professionally managed. You would not receive even a 1099 to report income until the year you make withdrawals.
4. Every one is eligible to take advantage of 529 plan and the amounts you can put for one child can be substantial around 250,000 dollars or higher depending up on the state plan.

CollegeBound fund is a 529 plan.

Sponsored by the state of Rhode Island is a flexible college saving plan, managed by Alliance Capital, a mutual fund company and also has age based portfolios.

There are no income limitations or age restrictions.

Thinking about going back to college or graduate school in the future?                                                 

Then setup a plan for yourself. There is no reason why you cannot be the beneficiary or your own account.

Need more information, Just call or email Hans Sharma, Certified financial planner and registered investment advisor