Have you wondered about your options in saving for your childs tuition? There are 2 great ways to take advantage of the college 529 plans. There is significant tax advantages and benifits for starting a 529. One is a prepaid 529 plan…
the other is the whats called a 529 college fund savings plan.
The first of the two plans, the prepaid 529 college fund is great! The performance of the investment is reflected in the inflation of college prices. Prepaid 529 plans allow you to purchase tuition credits at current price and stop worrying about future prices!
The second, the college 529 savings plan. These differ in that their performance is based off of performance of mutual funds.
The prepaid college plans are available through State and higher education institutions. The savings plans only through the state you live in. Anyone can start one. Also there usually isn’t a large start-up deposit necessary.
Another advantage to the 529 college fund is that you are able to maintain control over your money. You can pull out at any time, no questions; making it very flexible for rainy day needs. The Federal taxes will not allow your donations to count as deductible, but many states allow for tax deductions for 529 contributions. (many even let you roll over your contributions state to state)
no comment untill now