Get Your Toddlers Set Up for College
January 26, 2007

State-sponsored 529 college savings programs (also known as qualified tuition plans) made the news last fall because Congress has made their tax-free earnings status a permanent thing.
If the newspaper articles raise awareness about these programs, so much the better. They are very helpful for middle-income families who want to pay for college expenses without going into debt.

In ETR #1943, I suggested that it's the responsibility of the parents - not the government - to make sure their children have a good elementary and high school education. That means investing both time and money. But when it comes to a college education, the responsibility has always been borne by individuals - the parents and/or the students. In fact, next to a house, college tuition is the biggest financial burden that most families face.

Why not lighten the load by (1) paying for tuition and school expenses in advance or (2) beginning to invest for that education today on a tax-exempt basis?

Read the rest of this article in Early To Rise

posted by M. Masterson @ 9:00 AM,

1 Comments:

At 11:05 PM, Anonymous Anonymous said...

I eagerly read your article. 529 plans are simple, flexible but confusing to most general public. Have you tried to compare each state plan against other state? There is no simple comparison. I like plan which allows direct investing compare to broker paid comission based plan. I also like to use credit card rewards to save for 529 plans. List of credit cards can be found at http://www.plans529.com/Directory/tabid/145/rrcid/41/rrepp/5/Default.aspx

 

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