In the Virgin Islands, parents seek financial advice when planning for their child’s college education. The plans help parents accumulate adequate funds to cover the full cost of the tuition, books, and other requirements. A local financial advisor introduces parents to a variety of plans right now.
Starting a Trust Fund
A trust fund is beneficial for helping parents generate funds for college tuition. The funds are started after the child is born, and the parents make contributions as they prefer. When reviewing their finances, the financial advisor presents a plan for accumulating an adequate value for all the child’s college expenses. The advisor starts with the current tuition rate at preferred colleges. Adjustments are made when rates increase.
Saving for Prepaid College Opportunities
Prepaid opportunities are also available through colleges and universities. The parents have the option to prepay the college tuition at the child’s preferred college. The parents set up prepayments based on the current rates. The plans allow the parents to contribute to the plan until all costs are covered completely. Any balance left over after the child finishes college is sent back to the parents or the child based on the provisions of the plan.
529 Savings Plan for College
The 529 savings plans are set up like a 401-(k) plan. The parent contributes around six percent of their wages into the plans tax-free. They have the opportunity to start the plans at any time. A financial advisor provides advice about contributions based on the current tuition rates and when the plan starts.
Whole Life Insurance Policies
Whole life insurance policies are beneficial methods of generating adequate funds. The policies are often started when the child is born, and the policies are cashed in when the child starts college. By the time the child reaches college age, he or she has adequate funds to cover the cost of tuition, books, and supplies for college.
In the Virgin Islands, parents work with financial advisors when planning for their child’s future. Financial advisors show the parents how to start the right savings plans to cover college tuition. Parents who want to review the plans contact David Johnson Cane Bay now.