Financial Independence. We're all looking for it. Working towards it. It means more than just money in the bank. It means peace of mind. Freedom. Security. But, even if you're lucky enough to win the lottery or receive a generous inheritance from your favorite aunt, financial independence doesn't just magically happen. It takes planning. Knowledge. Guidance. You will be guided toward a well designed and personalized portfolio that will match your financial goals. The professional advice we provide will give you peace of mind.

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529 Plan Overview

A 529 plan is a state-operated investment plan designed to help families save for future college costs. The funds can be used to pay for qualified higher education expenses such as tuition, room, board, fees, and books. Although 529 plans differ slightly by state, the following are common features:

Tax Benefits. Earnings grow tax-free. Withdrawals used for qualified educational expenses are also tax-exempt.

Investment Options. We now offer New York's 529 College Savings Program Direct Plan which offers numerous tax incentives that make it a very attractive way to save money for college for a child, grandchild, friend, or other relative. You'll get a New York State income tax deduction of up to $5,000 ($10,000 for married couples filing jointly) for contributions if you are a New York State taxpayer. Contributions to a 529 plan also qualify for the federal gift tax exclusion of $12,000 per year in 2006 for one person, or $24,000 for a married couple. A donor can combine up to five year's worth of gifts at a time without incurring gift tax.

Flexible Contributions. Depending on the plan, contributions can be as little as $25 or as much as $246,000. Anyone can contribute to an account, regardless of income level.

Controlled by Account Owner. The account owner is the only person who can authorize a distribution from the account. This feature helps to ensure that the savings will be used to cover education expenses.

Changes in Beneficiaries. The beneficiary on the account can be changed free of penalties and taxes, as long as the new beneficiary is a member of the former beneficiary's family.

Gift and Estate Tax Benefits. Contributions up to $50,000 may be excluded from federal gift tax pro rata over a five-year period. Contributions are considered completed gifts and are removed from the donor's estate for tax purposes.

The already popular 529 plans were made even more appealing in June 2001 when Congress passed the Economic Growth Relief Reconciliation Act. The new law grants several provisions that enhance 529 plans.

An investment in a 529 plan is not an investment in a mutual fund. For more information about 529 plans obtain an offering statement, which contains more information on the risks, charges and expenses of investing. Read it carefully before making any investment decisions.

Call us for information on this terrific plan.

Ann Wolfson Associates
White House, 7030 E. Genesee St.
Fayetteville, NY 13066
315-449-4730
Email: wolfsoa1@ae.cadaretgrant.com
Securities offered through Cadaret Grant & Co. Inc. Member NASD/SIPC 4769 Buckley Road Liverpool, NY (315) 451-5885