A question we get a lot is…should I invest in a 529 plan for my kids’ college? The answer is…maybe. A 529 plan is an education savings plan operated by a state or educational institution. It has been created to help you save and invest funds for future college costs. There are 2 basic initial differences in 529 plans: The College Savings Plan and The Prepaid Tuition Plan. This week we’ll discuss the College Savings Plan.

College Savings Plan:

• You save & invest in an individual investment account.

• You have the choice of picking your investments (typically mutual funds) on your own or with the help of a financial advisor, or there may be an automatically chosen portfolio based on your child’s age.

• The value at time of need is based on your savings and investing and is what you have to utilize for college.

• Your investment return is not guaranteed.

Here’s something more to consider…

College Savings Plan:

• Gives you no guarantees—just your savings and investment opportunities.

• Flexible—typically can be used to pay for tuition, books, equipment, fees and room and board at a wide variety of qualifying institutions.

Don’t make a decision yet, read more…check back next week for information on The Prepaid Tuition Plan.