Wachovia Investing Goals for College

Whether you’re saving for yourself or for a child, you need to have the money in place before you register for classes. Your investment plan will vary depending on the amount of time you have before the first day of classes—so get started today.

Uncover college costs.

While there are many ways to cover the costs of college, the majority of students use a combination of funding from savings, student loans, scholarships, and part-time jobs. Don’t forget to factor in the costs of housing, books, food, insurance, and entertainment. You need to save enough money to cover all of the costs, not just your tuition and books.

Save for a child.

Start early to take advantage of compounding. Most financial experts suggest opening a college account when the child is born. Another choice to consider is the benefit of saving in the child’s name—the first $700 is tax free, the next $700 is taxed at the child’s rate, and anything over $1,400 is then taxed at the parent’s top marginal rate.

Savings Accounts

A savings plan is an important part of any financial strategy and Wachovia offers savings and money market accounts to help you build a solid financial future. A savings account is a safe place to keep your money and earn interest.

Asset Management Accounts

You can gradually build a portfolio with an extensive range of accounts and services, all available through one convenient investing and banking relationship.

Education Savings Account

The Coverdell Education Savings Account (formerly the Education IRA) is a popular way to save for a child’s education. Plus, anyone can contribute—so if a grandparent wants to put a little extra in at birthday time, it’s easy to do. These accounts allow contributions of up to $2,000 a year, per child. Withdrawals are tax-free and penalty-free as long as the account is used for education expenses before age 30. Other benefits include flexibility to use the funds for kindergarten through college and the opportunity to invest in a variety of stocks, bonds, and mutual funds.

529 Savings Plans

529 plans provide tax-deferred earnings towards qualified education expenses like tuition, room, and board. These plans also allow gift-tax exclusions under certain circumstances and can offer special advantages for estate planning purposes. 529 plans offer flexibility in terms of both choice of college and investing choices.

Work with a Financial Advisor.

If you’re unsure about which college savings program is right for you, consult a Wachovia Securities Financial Advisor. Working with an advisor can help you assess what type of savings choices to explore—stocks, bonds, mutual funds, and more. If money is tight, your advisor might suggest setting up a Systematic Investment Plan (SIP) so that money is drawn monthly from your account into a money market account or invested in a mutual fund earning higher interest rates. SIPs can be set for as little as $50 a month, so almost anyone on any budget can start to save today.

Save for returning to college.

Whether you’ve decided to attend college or return to college, we can help you get your financing into place quickly so you can focus on the real goal—your degree. Spend some time planning how much money you’ll need and how long it will take you to complete your coursework.

Other Sources of Funding

If you are getting a late start on savings, you may want to consider ways to get your money working faster like a money market account, investing in stocks, or mutual funds. If you’re returning to school and you own a home, you might want to consider a home equity loan since the interest rates are usually less than those of traditional student loans. Additionally, you’ll want to consult with your tax advisor to research what tax benefits you can gain from saving for educational costs.

Scholarships and Financial Aid

Even if you think that you’re ineligible for financial aid, fill out the applications and mail them in on time because you never know what you might qualify for in financial assistance.

Scholarships are another great source to supplement tuition costs. Go to the college’s financial aid office and ask about applications or search for scholarship information online.

Work Study and Part-Time Jobs

Many students find that working part-time is a practical and great way to offset the cost of college life. Ask about work-study programs at your college’s financial aid office or see if your campus has a college job resource for internships and local employers. If your schedule is too intense for year-round employment, line up a summer job to sock away money for the rest of the year.

Securities and Insurance Products: Not Insured by FDIC or any Federal Government Agency; May Lose Value; Not a Deposit of or Guaranteed by a Bank or any Bank Affiliate 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.

CollegeSense is a registered mark of Evergreen Investment Services, Inc. Evergreen Investment Management Company, LLC is a subsidiary of Wachovia Corporation and a separate affiliate of Wachovia Securities.

The tax law exempting earnings on qualified withdrawals from federal income tax expires on December 31, 2010, requiring Congress to take some further action to secure these provisions prior to this date in order for them to remain in effect following December 31, 2010. For withdrawals not used for qualified higher education expenses, earnings are subject to income taxes at the distributee's rate plus a 10% federal tax penalty. Please consult your tax advisor with any questions.

Only deposit products are FDIC-insured.

Periodic investment plans do not 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.

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How should I approach investing for college?