Select Your Destination
 

< Feature Stories >

2019 D4 Track Championships

The Eaton Calendar - May 14

C&N Donates $150,000 to Benefit Local Education

We're dancing in the streets as we celebrate First Friday!

More than just a day event - join the initiative every day!

Wellsboro Women's Chorus To Host Concert, May 4th

 
 
 

Investing In Your Child’s Future

Featuring Ben Howe, Trust Officer, C&N’s Trust and Financial Management Group

 

by C&N Bank, , - January 3, 2018

For many parents and grandparents, investing in their children’s future is a high priority. But it can be tough to figure out the best time and the best way to get started. Ben Howe, from C&N’s Trust and Financial Management Group, took the time to share some of his expertise by answering these 6 common questions.

When should I start?

As soon as it’s feasible. It’s important to balance meeting your present needs and meeting your own needs of the future with investing in your children’s or grandchildren’s future. The more time you allow for the savings to grow and the more you can put away early, the more potential those investments have to grow.

Are savings bonds still a viable option?

Savings bonds are still used, but to a much lesser degree than in years past. This is for several reasons: 1) interest rates are at historic lows, making them a less attractive investment option; 2) they are no longer available at your local bank branch. You have to set up an account at TreasuryDirect.com and purchase them online; 3) there’s a wider range of more competitive offerings available.

What are the alternatives to savings bonds as gifts?

There are many options to consider. For college, 529 plans are state sponsored college savings programs. These have seen significant growth in recent years and are specifically designed to save for college. When you know a child is going to go to college, this is an efficient tool to save for tuition and college expenses. However, there can be some drawbacks if the money is not used for college.

UGMA (Uniform Gift to Minor Account) and UTMA (Unified Transfer to Minor Account) are custodial accounts. These are flexible in the sense that the funds can be used for any purpose and similar tax treatments. However, these are considered the child’s asset, which is not seen as favorably as a parent’s asset when applying for financial aid or tuition assistance. Even individual investment accounts can be set up and earmarked for later to be passed onto the child.

How much do I need to start?

Minimums are reasonable on most accounts. As little as $25 can be set up on an automatic investment plan. Very reasonable to start out.

What are the tax implications?

Each account type has its own specific tax ramifications, beneficial or consequential, depending upon how the funds are ultimately used. For example, if a 529 plan is not used for college, there could be tax penalties or implications. When deciding which type of account to choose, it’s important to define a plan with a clear understanding of your goals and how the funds will be used.

What information should I bring to a meeting with my advisor?

You will need the child’s full name, date of birth and social security number. This information will be crucial to set up one of these types of accounts.

Whether you’ve already started investing in your children’s future and would like some reassurance on your plan or you’re just thinking about possibly getting started, our experts, like Ben, at C&N Trust and Financial Management Group are only a call or click away and always happy to talk.

Website: www.cnbankpa.com
Phone: 1-800-487-8784
Email: contactcn@cnbankpa.com

Credits:

Writing: N/A, ,

Photography: ,

 

Produced by Vogt Media

Funded by Citizens & Northern Bank

< Current Stories >

 

See More Current Stories

 

NTL teams compete at 2019 District Championships

May 20, 2019

 

A week of Home Page Network feature highlights!

May 18, 2019

 

Training Children in Spirit, Mind, and Body

May 17, 2019

 

Wellsboro Men's Chorus, WAHS Men's Chorus & HG Young Men's Choir

May 16, 2019

 

Personal Profile of a Rotary Foreign Exchange Student

May 15, 2019

 

Excerpts from the Eaton Calendar - Update

May 14, 2019

 

Fun and exciting education at the Southern Tioga School District

May 14, 2019

 

Motions, reports and the Community Garden

May 14, 2019

 

Local teams compete for Northern Tier League crowns

May 13, 2019

 

A week of Home Page Network feature highlights!

May 11, 2019

 

Talking About & Treating Incontinence

May 10, 2019

 

Shoemaker in custody on multiple charges

May 9, 2019

 

Wellsboro High School launches aviation curriculum

May 9, 2019

 

STEAM Team joins Warren L. Miller students

May 9, 2019

 

Tioga County rivals compete in final league meet

May 8, 2019

 

Doney, Rowland throw complete games to earn wins on the mound

May 7, 2019

 

Education is key to a strong and prosperous community

May 2, 2019

 

5 Ways to Protect Your Business from a Ransomware Attack

May 6, 2019

 

A week of Home Page Network feature highlights!

May 4, 2019

 

We're dancing in the streets as we celebrate First Friday!

May 3, 2019

 

How disaster response agencies prepare for disasters

May 3, 2019

 

3-run 1st inning improves Wellsboro's record to 6-4

May 2, 2019

 

More than just a day event - join the initiative every day!

May 1, 2019

 

MU graphic design students demonstrate artwork

April 30, 2019

 

UPMC Susquehanna + Penn College new training facilities

April 29, 2019

 

A week of Home Page Network feature highlights!

April 27, 2019

 

What do you do when you feel spring won't return?

April 26, 2019

 

Easy-to-use resources & tools to help navigate your finances

April 25, 2019

 

Interview with owner, Brad Goodwin

April 24, 2019

 

Violinist & broadcaster shares background & tips

April 23, 2019

 
 

Load More Stories