With annual college tuition rounding out to a hefty $9,500 at a public college, experts at Madison Street Capital say don’t give up on those 529 tuition plans. Qualified Tuition Programs, also referred to as 529 plans are terrific supplements to aid future college students. All states have these plans, and they allow your savings to compound tax-free. “Another great incentive for opening a 529 plan is that you have the option to roll your savings over to another state’s plan, giving your child more choices, including out-of-state choices for college,” says Charles Botchway, Madison Street Capital CEO.
Both Vanguard and Schwab offer a 529 College Savings Plan and only a minimum of $25 to open an account. Yet one of the best web sites to compare plans is savingsforcollege.com, which also provides the latest information on everything from tax deductions to various investment vehicles. “One big advantage of 529 College Savings Plans is that these accounts are not considered to be part of the child’s assets, instead its part of the contributor’s assets, having less impact on the student’s financial aid package,” says Madison Street Capital experts.
Another college savings vehicle is the Coverdell Education Savings Account. If you qualify with an income below $110,000/$220,000, you can invest $2,000 per year towards a child’s education, up to age 18. Another plus, if the designated student decides not to attend college, the money in the Coverdell account can be transferred to a sibling, and after age 30, any remaining funds can be withdrawn, after a 10% penalty. Madison Street Capital experts caution on which account you should open. “Both types of education savings accounts have drawbacks, so its prudent you read through all the facts and figures to make sure you choose the plan advantageous to your situation.”
Who Are The Game Changers
Madison Street Capital is a boutique international investment bank, and beyond financial engineering, they advise customers on finding solutions to encourage growth. Since 2005, the firm has been providing individualized services to middle-market companies, quickly becoming one of the top investment firms. Whether public or private, Madison Street Capital’s versatility enables the firm to offer sound analyses and advice on a larger scale.
In a climate of intense competition, Madison Street Capital has been able to whether the storm and boost revenues by growing internally. The company’s success is admired. Under strong leadership, the company has pursued a global customer base, with a strategy that has improved efficiency and performance.