{"id":1661,"date":"2024-04-08T21:41:25","date_gmt":"2024-04-08T21:41:25","guid":{"rendered":"https:\/\/www.hfaboise.com\/?p=1661"},"modified":"2024-04-08T21:41:25","modified_gmt":"2024-04-08T21:41:25","slug":"prepping-your-children-for-a-strong-financial-future","status":"publish","type":"post","link":"https:\/\/www.hfaboise.com\/prepping-your-children-for-a-strong-financial-future\/","title":{"rendered":"Prepping Your Children For A Strong Financial Future"},"content":{"rendered":"
[vc_row][vc_column width=”1\/3″][vc_single_image image=”1557″ img_size=”full”][\/vc_column][vc_column width=”2\/3″][vc_column_text]By Zack Taylor, Associate<\/p>\n
[\/vc_column_text][vc_column_text css=”.vc_custom_1712612312040{margin-top: -1em !important;}”]Most parents would aspire to give their children a better future than they had for themselves growing up. A better future can mean many different things but setting them up to be able to take on the world from a position of financial strength when entering adulthood is a common desire for many parents. The question is, what is the best way to go about doing this? While setting money aside in a savings account is something that would come to mind, it may not be the most effective way to reach these goals for your children. In the following paragraphs, we will cover a few ways to help your child down the line whether it be for educational needs or anything else life throws at us in adulthood. <\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row css=”.vc_custom_1707244889915{margin-bottom: 2em !important;}”][vc_column][vc_column_text css=”.vc_custom_1712612470676{margin-top: -1em !important;}”]529 Educational Savings Plan<\/b><\/span><\/p>\n 529 plans were originally set up to help parents set funds aside for their child\u2019s post-secondary education costs (college). Since their creation, there have been a few changes made. They are now able to help cover the costs of K-12 education if the child will be attending private school or different apprenticeship programs. Additionally, they have been adjusted to where they can be used to pay off student loans, or if never used, be transferred to fund an IRA.\u00a0<\/span><\/p>\n Benefits of using a 529 plan:\u00a0<\/span><\/p>\n [\/vc_column_text][vc_column_text css=”.vc_custom_1712612394469{margin-top: -1em !important;}”]Downsides of using a 529 plan:\u00a0<\/span><\/p>\n [\/vc_column_text][vc_column_text css=”.vc_custom_1712612461950{margin-top: -1em !important;}”]Uniform Transfers to Minors Act (UTMA)<\/b><\/span><\/p>\n Another avenue parents can consider when thinking about setting funds aside for their children is by using a UTMA account. These types of accounts offer more flexibility than a 529 plan which some will find to be more attractive. Depending on the goals of the parents and where they see their children down the line, it may be a more fitting solution. Established in 1986, The original purpose of UTMA is to provide a legal framework for adults to transfer assets to minors without the need to establish a trust. However, since then, they have been used as a tool to help prepare a child for their future.<\/span><\/p>\n Benefits of an UTMA account:\u00a0<\/span><\/p>\n [\/vc_column_text][vc_column_text css=”.vc_custom_1712612438773{margin-top: -1em !important;}”]Downsides of an UTMA account:\u00a0<\/span><\/p>\n [\/vc_column_text][vc_column_text css=”.vc_custom_1712612453594{margin-top: -1em !important;}”]Conclusion<\/b><\/span><\/p>\n \u00a0If setting funds aside for your children is a goal, taking the time to consider which accounts will be most effective to do so will make a big difference in how much they will receive when the time comes to use the funds. Perhaps you don\u2019t believe college isn\u2019t part of your children\u2019s path. Maybe you want to help with a home downpayment in the future. Whatever the reason may be, setting money aside for them will help to give a head start in life when that time comes. If you have questions about your specific situation, reach out to us at Harris Financial Advisors and we can help decide what will be the best decision for you and your children\u2019s futures!<\/span>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":" [vc_row][vc_column width=”1\/3″][vc_single_image image=”1557″ img_size=”full”][\/vc_column][vc_column width=”2\/3″][vc_column_text]By Zack Taylor, Associate [\/vc_column_text][vc_column_text css=”.vc_custom_1712612312040{margin-top: -1em !important;}”]Most parents would aspire to give their children a better future than they had for themselves growing up. A better future can mean many different things but setting them up to be able to take on the world from a position of financial strength…<\/p>\n","protected":false},"author":2,"featured_media":1557,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[],"yoast_head":"\n\n
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