December 12, 2016
To Choose or Not to Choose a 529 Plan? That is the Question…
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.
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Related Posts
- You’re Curious About Your Money – Start Here! ( December 28, 2020 )
- College Costs – Facts & Tips ( February 4, 2019 )
- The 529 College Savings Plan Choice ( August 14, 2017 )
- To Choose or Not to Choose a 529 Plan? Part II ( December 19, 2016 )
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