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Press Release


 

Education Savings Programs: What You Need to Know

A message from Metro Investment Services

 

Chelsea, MA– July 20, 2009 – At a time when many Americans are making difficult financial choices, saving for your child’s education (both college and K-12 private school tuition) may seem like a far-reaching goal.  With so many families finding themselves in the middle of a financial squeeze, Metro Investment Services offers some important information for saving for your child’s education costs that could make that goal much more tangible.

College savings plans (529 programs) allow you to save money in a special college savings account for a student’s qualified higher education expenses at any eligible educational institution. Qualified higher education expenses include tuition and fees, books and supplies, and room and board for students enrolled at least half time.  Any adult – parents, grandparents, other relatives, and friends – can open an account and name a beneficiary.

Another option, prepaid tuition plans, allow you to pay tuition in advance and lock in the cost based on today’s tuition prices.  You can use savings in these plans for tuition at any eligible public university or private college in the country.

A third choice, Coverdell Education Savings Accounts, formerly named Education IRAs, allow you to contribute up to $2,000 per year to an education savings account per child under age 18. Although contributions aren’t tax deductible, earnings accumulate tax deferred and withdrawals to pay qualified education expenses are free from federal taxes.

Your first step in planning your child’s education should be to work with a financial advisor who can help you make the right decision for your personal circumstances and then help you choose investments that will move you in the direction of your education goals.  To set up a no-cost, no obligation appointment, contact Carlos Nolasco at 617-488-5429.

Metro Investment Services Representatives are registered, securities are sold, and investment advisory services are offered through CUNA Brokerage Services, Inc., a member of FINRA/SIPC, and a registered broker/dealer and investment advisor.  Non-deposit investment and insurance products are not federally insured, may involve investment risk, may lose value and are not obligations of or guaranteed by the credit union. CBSI is under contract with Metro Credit Union, through the financial services program, to make securities available to members. 

About Metro Credit Union
Metro Credit Union is one of the largest credit unions in Massachusetts with over $770 million in assets, and serves over 120,000 members.  Established in 1926 and based in Chelsea, Metro offers superior service and a full range of financial products, including investment and insurance offerings, for consumers and businesses in eastern Massachusetts.  Metro has nine branch offices conveniently located in Burlington, Chelsea, Framingham, Lawrence, Lynn, Peabody, Swampscott, Tewksbury, and a tenth branch soon to open in Boston.  Metro is also a leader in workplace banking, serving over 1,800 companies throughout the state.