You want the best for your kids. You have hopes and dreams of what they might be able to achieve, and you would do anything to help them get there.
You’ll start with teaching them manners and how to cross the street safely, of course, but it’s also never too soon to start setting money aside for a college education. It seems to get more expensive each year, so investing now, even in small amounts, can make a big difference.
Farm Bureau offers a variety of education funding options:
529 Plan: A tax-advantaged education savings plan in which the account owner selects investment options to invest in. These assets can then be used to pay for qualified education expenses at any eligible educational institution.
Coverdell Education Savings Account (ESA): If your modified adjusted growth income is less than $110,000 ($220,000 if filing a join return), you may be able to establish a Coverdell ESA to pay for the qualified education expense of a designated beneficiary.
Uniform Transfer to Minor’s Act (UTMA): A UTMA account is a common way to provide assets and/or securities for the benefit of a minor. Anyone can contribute to a UTMA account, and while the money can be used for education expenses, it does not have to be.