INVESTING GOALSEducation planning for you and your family
Wherever you are on your path toward saving for school, our advisors can help you stay on track toward your education goals.
To get started, call 1-800-969-3161 to speak to a J.P. Morgan team member Monday–Friday from 8 AM to 9 PM ET. Or fill out a form and we’ll contact you.
Prepare for today and tomorrow
Define your education goals
We take the time to understand your priorities and map out a strategy tailored to who you are, where you are and where you want to go.
Explore your funding options
We can help you evaluate your saving, investing, borrowing and financial aid options to determine what would work best for you and your family.
Put your strategy to work
Based on your goals, we can help you create a strategy that may reduce taxes and offer opportunity for compound growth.
Adapt as change comes your way
We’ll help you track your progress and make adjustments as your goals and financial situation evolves over time.
Here’s how we can help you plan for your family’s future
Keep your goals in sight with Wealth Plan
Use our Wealth Plan experience to set up and adjust your education goals, see your daily progress and get personalized guidance to help you stay on track.
IMPORTANT: The projections or other information generated by Wealth Plan regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary with each use and over time.
Start your education planning today
Call 1-800-969-3161 to speak to a J.P. Morgan team member Monday–Friday from 8 AM to 9 PM ET. Or fill out a form and we’ll contact you.
Learn more about your funding options
What it is:
A tax-advantaged investment product for education that has a low impact on financial-aid eligibility.
Benefits:
- May be applied to K-12 tuition, vocational school, registered apprenticeships, college, graduate school and student loans.
- Investments grow tax-free.
- Withdrawals are not subject to federal tax (when used for qualified education expenses).
- You can “frontload” your contributions by making five years’ worth of gifts in a single year.
- Easy to establish and maintain.
Disadvantages:
- You're limited to the investment options offered by the 529 Plan.
- Using annual exclusion gifts to fund a 529 account precludes use of the annual exclusion amount for other purposes.
What it is:
Specialized accounts that can be used for a child's general benefit, not just for education.
Benefits:
- The UGMA (Uniform Gift to Minors Act) and UTMA (Uniform Transfer to Minors Act) are custodial accounts that can be applied across a variety of financial needs, not just college funding.
- The custodian can invest the account’s assets in any manner they choose.
- Withdrawals are not subject to federal tax (when used for qualified education expenses).
Disadvantages:
- Custodial accounts are considered assets of the student and must be turned over to them when they reach the age of maturity, and also may limit financial aid eligibility.
- Using annual exclusion gifts to fund an UTMA account may prevent the use of the exclusion for other purposes.
- These accounts are typically taxed at the same rate paid by the parents.
What it is:
A tax-advantaged investment product for education that has a low impact on financial-aid eligibility.
Benefits:
- Earnings accrue free of income tax.
- Distributions may be made free of income tax as long as they're made for qualified education expenses.
- Assets may be invested in almost any product, including stocks, bonds and mutual funds.
- Easy to establish and maintain.
Disadvantages:
- Maximum investment is limited to $2,000 per year, per beneficiary. The $2,000 contribution maximum is gradually phased out if your modified adjusted gross income falls between $190,000 and $220,000 ($95,000 and $110,000 for single filers).
- Contributions must be made before the beneficiary reaches age 18.
What it is:
There are a variety of financial aid packages, from scholarships to federal student loans. These options can be used to supplement your education savings.
Benefits:
- Often, grants and scholarships don't have to be paid back.
- Federal student loans are easy to apply for and offer flexibility when it comes to repayment.
- Student loan interest can be tax-deductible.
Disadvantages:
- Merit-based scholarships can be very competitive and not everyone qualifies.
- Only 0.3% of students receive enough free aid to completely cover their education.
- 32% of financial aid is disbursed through federal loans that need to be paid back with interest.
- Today, a record 4 in 10 households owe student loan debt.
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