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List: Posted: 10/25/11
Saving for college can seem daunting, but college plans for saving make things much easier for you. Even if you are only able to put aside a small amount of money each month, it will soon add up and make a difference. Learning about the best college plans can help your money grow as the compounding interest also adds up.
For starters, the Section 529 college plans are some of the best out there. They have high income limits, high contribution limits, and low fees. You get a lot of control over where your money is being invested with these college plans. Often times you can start off with aggressive, riskier investments and end up in more conservative investments.
A 529 pre-paid plan can also be a good idea, though it has more limits. Basically, you buy units of time at a state school with these college plans. You’ll pay today’s rates for tomorrow’s tuition. These college plans can be a little complicated, but they might be a good option. These are especially good if you know your child is going to go to school in state. The 529's are, however, only able to be used for people under the age of thirty.
The Coverdell Education Savings Account is another of the good college plans that are currently available. You can use a Coverdell along with a 529 Plan, and you can use the money from this tax advantaged account for private elementary and high school expenses, too. This account has more contribution restrictions, but it can be a good way to supplement other college plans like the 529. With all these options available for saving, you'll be sure to find one that is perfect for you.
Hourly fee-only financial planning, investment advice, tax planning & prep, college financial aid advisor, 529 savings plans, retirement planning, Dean Knepper, CPA, CERTIFIED FINANCIAL PLANNER practitioner, 25 years experience
Independent, coeducational, college-preparatory day school for grades TK-12.
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