February 7, 2008
Get the 5-2-9
No,
it's not code for the hottest new cell phone, the address of some
underground party, or the first three digits of Britney Spears'
unlisted number.
529 is a number that can help you save thousands to further your
education, or help your kids (or grandkids) attend the very best school
they can get into.
Named after Section 529 of the Internal Revenue Code, this
tax-advantaged investment plan helps you to save money for a named
beneficiary (usually a child or grandchild) over a specified term. The
set-up varies from state to state.
Prepaid plans allow for the pre-purchase of tuition based on
today's rates. This is then paid out at the future cost when the
beneficiary is in college.
Savings plans depend on the market performance of the underlying investments, most likely mutual funds.
If you want to pass down the gift of education, check into the
rules and restrictions in your area. These days, opportunities need to
get started early.
Visit http://www.collegesavings.org/index.aspx for more information.