You are ready to begin investing for your children’s education – kudos to you! It’s understandable that deciding where to save may be a tough decision to make. We’re here to help! Below are four college savings options for you to evaluate, consider which one or the combination that is best for your family.
529 College Savings Plans
529 College Savings plans are a very attractive solution to saving for college. They were created in 1996 in section 529 of the IRS code – hence the name. They are essentially mutual funds for college savings. Therefore, they contain a mix of investments in stocks, bonds, real estate, and money market funds. Over the life of the account, contribution limits range from $100,000 - $300,000 based on the rules of your state and your money grows tax free. You don’t have to buy a 529 only in the state you live in; research which state offers the best plan for your goals and you can invest there. Another bonus is the low investment minimums – you can open an account with as little as $25 in most cases. There’s no age limit on beneficiaries or time limit on distributions..... (More)
-Dorethia
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