College

One of the best ways to prepare for life’s challenges is to earn a college degree. Education can provide the groundwork for a comfortable standard of living and a better future for generations to come. However, despite the benefits of higher learning, a barrier still exists for many people, and that barrier is cost. To get ahead, your money has to grow faster than the cost of college—and when it comes to education funding, time really is money.

There are two basic approaches to education funding:

  • Lump-sum investment. Established early, this single payment approach requires the smallest total investment and makes the best use of compounded earnings over time.
  • Periodic investments. Investing at regular intervals can offer the potential benefits of convenience and dollar-cost averaging—a strategy that helps reduce the average cost of an investment by buying more shares when prices are low, and fewer when they’re high.1

Once you decide on the funding method, you can select from multiple strategies:

  • 529 Plans. First authorized by Congress in 1996, qualified state tuition programs, or 529 college savings plans, allow states to offer investors professionally managed, tax-advantaged portfolios to help meet rising college expenses.2

Please consider the investment objectives, risk, charges and expenses carefully before investing in a 529 savings plan. The official statement, which contains this and other information, can be obtained by calling your financial advisor. Read it carefully before you invest.

  • Education Savings Accounts. Allow parents, grandparents, friends—and even a child—to save for higher education expenses tax-free.
  • Custodial Accounts. Custodial accounts established under the Uniform Gifts to Minors Act (UGMA) or the Uniform Transfers to Minors Act (UTMA), offer certain tax advantages. In addition, these accounts allow parents to control investments, while allowing the minor to be the account owner.

Learn More About Investing with a Financial Advisor
Find out how a Wachovia Securities Financial Advisor can help you create an effective education savings plan.

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1 Periodic investment plans do no assure a profit and do not protect against loss in declining markets. Since such a plan involves continuous investment in securities, investors should consider their financial ability to continue purchases through periods of low price levels.

2 Non-qualified withdrawals are subject to federal and state income tax and a 10% penalty. College savings plans offered by each state differ significantly in features and benefits. The optimal plan for each investor depends on his or her individual objectives and circumstances. In comparing plans, each investor should consider each plan's investment options, fees and state tax implication.

Wachovia Securities is not a tax or legal advisor.

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Wachovia Securities is the trade name used by two separate, registered broker-dealers and non-bank affiliates of Wachovia Corporation providing certain retail securities brokerage services: Wachovia Securities, LLC, Member NYSE/SIPC, and Wachovia Securities Financial Network, LLC, Member FINRA /SIPC.

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Wachovia Securities Statement of Financial Condition
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