• How to Be Financially Prepared for Your Kids' College Education

    Orland Park, IL (May 6, 2013) – It’s always smart to plan ahead, especially when it comes to saving for your children’s college educations. The time will come faster than you realize and you don’t want to scratch your head about what to do or, more importantly, what you should have done years ago.

    Marquette Bank, a locally-owned neighborhood bank, recommends that parents consider starting a 529 College Savings Plan. There are two different options available: a prepaid program and a savings program. Both programs cover tuition at eligible public and private universities. The main difference among the two plans is that funds in a savings program can also be used to cover other non-tuition expenses (such as room and board). Your financial advisor can help advise you on what specific program is your best option.

     

    In addition, Marquette Bank lists three benefits of starting a 529 College Savings Plan:

    • Federal tax-deferred investment growth – You will have to pay income taxes on the money you put into the account, but you will not be charged any federal taxes on the earnings. Another perk is that you will not be taxed or charged an exuberant fee when cashing out the account to pay for your children’s college tuition and expenses.

    • State tax breaks – In most situations, you won’t have to pay state taxes on the plan and will be eligible for breaks. If you’re not happy with your state’s set up, you can shop around out of state to find the best option (and return) for you. 

    • Not set in stone – Every year, you will be eligible to change your investment to a different 529 savings option in your program. Again, every plan has different rules and benefits, which is why it’s important to figure out what type of plan is best for you. Let’s even say (in a perfect world) your child gets a full-ride scholarship. You will have the power to change the plan beneficiary so you can use the money for another child’s college costs.


    Marquette Bank offers free savings, budgeting and retirement-planning services for customers and neighbors through a comprehensive free financial review. If you are interested in a free financial review or would like more information on 529 plans, please call 1-888-254-9500. 
     

        

    About Marquette Bank:    

    Marquette National Corporation is a $1.6 billion diversified financial holding company for Marquette Bank. Marquette Bank has been a locally owned and operated bank providing personalized banking service since 1945. Marquette Bank is a full-service, customer-focused neighborhood bank that serves the financial needs of Chicagoland communities, offering an extensive line of financial products including retail banking, home financing, trust services and business banking. Marquette Bank has a lending portfolio of almost $1 billion in Chicagoland and offers home mortgages, multifamily lending, commercial mortgages, lines of credit, commercial real estate loans and small business lending. Marquette Bank regularly offers free financial literacy and education seminars, workshops and classes to customers, schools, senior groups, community organizations and local residents including personal financial and home buyer education classes. Marquette Bank has 23 retail branches located in Chicago, Aurora, Bolingbrook, Bridgeview, Evergreen Park, Hickory Hills, Lemont, New Lenox, Oak Lawn, Oak Forest, Orland Park, Romeoville and Summit, Illinois. Marquette Bank provides customers mobile banking, online banking and telephone banking options and free access to over 55,000 Allpoint and Starsf ATMs worldwide.

    Marquette Bank is an Equal Opportunity Lender, Equal Housing Lender and Member FDIC. Follow Marquette Bank on Twitter or like the Bank on Facebook for special offers and news. For more information visit: http://www.emarquettebank.com or call 1-888-254-9500.