College tuition assistance 

Investing for your children’s education expenses

What is a 529 Plan or a UTMA Custodial Account?

At Lang Investment Services, we provide you with the tools to navigate the variables of college savings effectively. Our team collaborates with you and your child to help you provide an enriching learning experience for them.

What college tuition investing options can include:

  • 529 Plan: This plan provides tax advantages when used for paying qualified educational expenses. The best 529 plans offer multiple college savings investment options and perform much like a Roth 401k or Roth IRA by investing after-tax contributions into your student’s account.

    529 account values will fluctuate in value depending on how the investments perform. 529 plans allow any one donor or custodian to make contribution(s) into the child’s account.

  • UTMA Custodial Account: UTMA accounts are controlled by parents (or other adult relatives), which allow you to transfer assets to a minor without the need to establish a trust.

    • The financial flexibility on a UTMA Custodial Account is a definite upside. However, if your student expects to rely on other sources of financial aid, a UTMA custodial account can have a negative impact as the government views the funds as assets for the child—these accounts could knock 20 percent off available financial aid.

Planning for college tuition investing:

The rising cost of college tuition can be a daunting prospect, but investing in your children’s educational future remains a valuable endeavor. In making this decision, it is essential to consider several variables:

  • Return on investment: Will the education your child receives lead to sufficient post-graduation earnings to justify the investment?

  • Financial aid and scholarships: Will the plan impact your child’s opportunities to secure financial aid and scholarships?

  • Cost of living: Will the plan account for your child’s living expenses in the area where their college is situated?

  • Career aspirations: Does the plan account for your child’s career goals and the education required to achieve those aspirations?

Start saving for their future →

529 plans come with fees and expenses, and there is a risk they may lose money or underperform. Most states offer their own 529 programs, which may provide benefits exclusively for their residents. Please consider whether the state plan offers any tax or other benefits. Tax implications can vary significantly from state to state.

Although UGMA and UTMA accounts are not designed specifically for college savings, they offer advantages including multiple investment options, limited tax benefits and the ability for a parent to transfer assets to a child without needing to establish a more costly trust. However, contributions to the accounts are irrevocable and parents lose control of the funds when the child becomes 18 - 21 – an age that may vary by state.

Frequently asked questions

  • College tuition investing options may include 529 plans, education savings accounts, custodial accounts, and other investment strategies designed to help prepare for future education expenses. The right option depends on the family’s goals, timeline, tax considerations, and flexibility needs.

  • A Colorado 529 plan may offer families a structured way to save and invest for qualified education expenses. Benefits, rules, investment options, and tax considerations can vary, so families should review plan details carefully before choosing a college savings strateg

  • Families can benefit from starting college tuition investing as early as possible, because a longer timeline may provide more opportunity for contributions and potential growth. That said, college savings strategies can still be useful even when a child is closer to college age.

  • If a child does not attend college, families may still have options depending on the account type and plan rules. Funds may be transferable to another eligible beneficiary or used for other qualified education expenses, but tax consequences and restrictions should be reviewed.

  • A financial advisor can help families compare college savings options, evaluate contribution strategies, and consider how education planning fits into broader goals such as retirement, cash flow, taxes, and long-term wealth management.

Start planning for future college savings.

Connect with us to explore college tuition investing options, including strategies that may help families prepare for future education expenses.

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