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How Saving for College Can Improve Your Child’s Future

How Saving for College Can Improve Your Child’s Future

The high cost of college and rising student loan debt that many students face have become popular headlines in the news lately. That is because student loan debt is skyrocketing and is now the second-highest debt Americans have behind their mortgage – totaling nearly $1.5 trillion in overall student loan debt.* This means the average American spends approximately $393 every month paying off their student loans.** Parents may wonder what they can do to mitigate these costs and help their children avoid financial pitfalls. Fortunately, 529 accounts offer families solutions.

Best Way to Save for College

September is college savings month. It’s a time to bring awareness to families who dream of sending their children to college and let them know that they have options. Options such as opening an Achieve Montana 529 plan account, allow parents one of the best ways to save for their child’s future college education. 529 plans are tax-advantaged savings programs that let parents take advantage of growing their account earnings deferred from both federal and state taxes.

529 plans have many benefits:

  1. Less reliance on student loans. The longer a parent contributes to their child’s college savings account, the more a child will have to use when it’s time to go to college. (That’s why it pays to not procrastinate and start saving as early as possible.)
  2. A variety of uses. Money in your account can be used towards any qualified college, university, vocational school, or other postsecondary educational institution, apprenticeship program expenses, and K-12 tuition too.
  3. Easy to get started. Setting up a 529 plan account with Achieve Montana is easy and affordable. Parents can open accounts for a little as $25 or $15 with payroll deduction, where available.

 

It’s Always a Good Time to Start Saving

College savings accounts have many more advantages. Investing in a 529 plan as soon as possible can be a win for parents planning for their children’s future education expenses. The important thing for parents to remember is that it’s never too late to start saving for college. By opening a 529 plan account today, parents can help their children avoid student loan debt tomorrow.

To learn more about how Achieve Montana offers solutions that help families grow their college savings for their children’s future education, download an Enrollment Kit at achievemontana.com or call 877.486.9271. Find them at: https://www.facebook.com/AchieveMontana.

Disclaimer:

The Enrollment Kit includes a Program Description that discusses investment objectives, risks, charges, expenses, and other important information; read and consider it carefully before investing.

Except to the extent of the New York Life Insurance Company guarantee that is available for the Capital Preservation Portfolio and certain of the Year of Enrollment Portfolios, investment returns are not guaranteed, and you could lose money by investing in Achieve Montana.

*What Is a 529 Plan? (2020, May 26). Achieve Montana. Retrieved 4 March 2021, from achievemontana.com/what-is-a-529-plan/ (as cited in Friedman, Forbes.com: Student Loan Debt Statistics in 2018: A $1.5 trillion crisis).

** What Is a 529 Plan? (2020, May 26). Achieve Montana. Retrieved 4 March 2021, from achievemontana.com/what-is-a-529-plan/ (as cited in Board of Governors of the Federal Reserve System Report on the Economic Well-Being of U.S. Households in 2016- May 2017).

 
Photo of student reading a piggy bank is near to remind us to save for education.

5 Ways to Get the Most out of Your Achieve Montana Account

You’ve opened an Achieve Montana account, you’ve named a beneficiary, you’re excited for what’s ahead, but now what? How do you go from making the occasional contribution to helping your children step into their dreams in a matter of years? We get it, even when you’re on the right track (way to go!), saving for education can seem like a daunting pursuit. But, with the right tools and resources, it doesn’t have to be. No matter where life takes them – college, trade school, or somewhere in between – these next five steps will give you the confidence to help them get there.

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May 22, 2024 No Comments

Why Consider Trade School?

When it comes to graduating or pursuing higher education opportunities outside of high school, many students are faced with one overwhelming question: What do I want to do next? A question that even many adults continue to struggle with throughout their life. And yet, the “societal norm” is for 18-year-olds to have it all mapped out prior to moving their tassel over on graduation day. But what if you don’t? Or even more, what if you do and your dream career or next step doesn’t include the typical college pathway?

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May 6, 2024 No Comments
A picture of a diploma and mortarboard next to stacked coins.

Kick Student Loan Debt to the Curb

At the end of last year, student loan debt in the U.S. totaled $1.74 trillion. That makes for an average student loan payment of more than $393 per month. And while loan forgiveness initiatives are up in the air every few months, here’s one thing that’s for sure – saving early can outweigh both the costs and stress of paying for college and higher education.

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April 8, 2024 No Comments
For more information about Achieve Montana, call 877.486.9271 or download an Enrollment Kit. The Enrollment Kit includes a Program Description that discusses investment objectives, risks, charges, expenses, and other important information; read and consider it carefully before investing.
If you are not a Montana taxpayer, before investing in Achieve Montana, you should consider the benefits of your home state’s qualified tuition program. It may provide taxpayers with state tax and other benefits such as financial aid, scholarship funds and protection from creditors, that are only available through your home state’s qualified tuition program. You should also consult your financial, tax, or other advisor to learn how state-based benefits (or limitations) would apply to your specific circumstances. Tax and other penalties may apply to non-qualified withdrawals.
Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision. In addition, you should periodically assess, and if appropriate, adjust your Section 529 Plan investment choices with your time horizon, risk tolerance and investment objectives in mind.
Achieve Montana is sponsored by the State of Montana and administered by the Montana Board of Regents of Higher Education, as sole trustee of the Montana Family Education Savings Trust (Trust). Ascensus College Savings Recordkeeping Services, LLC serves as program manager and provides recordkeeping and administrative support services for Achieve Montana. Blackrock Fund Advisors, Dimensional Fund Advisors LP, Charles Schwab Investment Management, Inc., New York Life Insurance Company and the Vanguard Group, Inc. each provide investment management services for the underlying investments comprising Achieve Montana’s portfolios. Although some of the portfolios invest in mutual funds, they are not mutual funds. When you invest in Achieve Montana, you are purchasing portfolio units issued by the Trust. Except to the extent of the New York Life Insurance Company guarantee that is available for the Capital Preservation Portfolio and certain Year of Enrollment Portfolios, investment returns are not guaranteed, and you could lose money by investing in Achieve Montana. Account owners assume all investment risks as well as responsibility for any federal and state tax consequences.
Upromise is an optional service offered by Upromise, Inc., is separate from Achieve Montana, and is not affiliated with the State of Montana. Terms and conditions apply to the Upromise service. Participating companies, contribution levels, and terms and conditions are subject to change at any time without notice. Transfers from Upromise to an Achieve Montana account are subject to a minimum amount. Go to upromise.com to learn more about Upromise. 
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