Ep. 165: College Planning for HENRYs

What are the smartest ways for HENRYs (High Earners, Not Rich Yet) to save for their child’s future college expenses—and what are the pros and cons of each option?

In this episode of The Confident Retirement Podcast, host Kris Flammang and LPF Advisors’ Armando Faucy-Smith and Collin Habig take a deep dive into college planning for HENRYs. They break down the three most popular ways to save for your child’s education—529 plans, custodial accounts, and parent-owned brokerage accounts. The team explains how each account works, key differences in flexibility, tax treatment, and financial aid impact, plus common mistakes to avoid when choosing the right college savings path.
5 Key Takeaways
→ A 529 plan offers tax advantages for education expenses and is generally the most “financial aid friendly” option for parents.
 → Custodial accounts (UGMA/UTMA) offer more flexibility but come with fewer tax benefits and count more heavily against financial aid eligibility.
 → Parent-owned brokerage accounts provide the most control and flexibility but lack tax perks for education and count as parental assets for financial aid.
 → Tax treatment, account ownership, and how funds are used (or not used for college) can have a huge impact on long-term savings outcomes.
 → It’s essential to understand your goals, your state’s rules, and to work with a financial advisor to tailor the right strategy for your family.

Best Quotes from the Episode

1. “The 529, of all the plans we’re going to talk about today, is probably the broadest one in terms of defining higher education.”
   
2. “People often underestimate how limited the flexibility is in a 529, and overestimate how free custodial money is—once your kid turns 18 or 21, that account is their money.”
   

• LPF Advisors Website: lpfadvisors.com
• Kris Flammang (LinkedIn): Kristopher Flammang
• Collin Habig (LinkedIn): Collin Habig
• Armando Faucy-Smith (LinkedIn): Armando Faucy-Smith
• Schedule a Consultation: Take your "money temperature" and create a personalized wealth-building strategy.
• Subscribe: Follow the podcast for more Smart Money strategies for HENRYs.

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