College tuition and room and board are getting more expensive by the year, so if you have children it may be time to save. College Savings Plans (529 plans) can minimize the amount of student loans you and your children will be responsible later in life, helping them get off to a running start in life, and helping you rest easy about how you will afford the tuition and fees.
Start Saving for College Early and Pay Less
The earlier you start, the less you will have to put into a good college savings plan, and the more interest it will accrue. It works the opposite of student loans, where the more you borrow, the more extra money you spend in years to come.
Prior to investing in a 529 Plan investors should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.