Investing in your children’s future is probably one of the smartest things you can do. It may seem scary to think about how you will put them through college, if they plan on attending, and how to help assure that they have a solid education.
For those looking for a way to invest in something that will increase in value over time and be there much in the same way as an IRA or 401k plan, opening a 529 is ideal.
Depending on your investment options your plan will increase with value over time (depending on some options you pick, it may decrease so look over all options). Unlike certain prepaid college plans, a 529 works at any eligible college or university throughout the nation, regardless of where you live or where you opened the account.
Another perk of a 529 is that it often comes with tax benefits. However, be sure to read over what your specific plan covers to be sure that you are given special tax benefits.
Broken down into two categories (Prepaid and Savings Plan) a 529 plan can truly be a lifesaver in terms of paying for your child’s education, as you can start it very early on in their life or contribute to it just as you would a retirement plan.
The prepaid plan allows you to pay for all or part of college costs. You can apply this to private or out-of-state college; however, some private colleges require you use an Independent 529 plan. The savings plan works like a 401k, in which you contribute a certain amount of your income to the plan over time.
Finding out your best options should involve research and meeting with a 529 plan specialist. You may also want to try using Delphi Scalper as a tool for more risky investments. Investing can be a scary process but investing in your children will give back ten-fold.