Saving for College
Putting a child or grandchild through college is NOT CHEAP! Therefore, it is important to plan ahead if at all possible. Two of the most popular ways to save for college is a 529 Plan or an Education IRA. I will briefly discuss 529 Plans today and the differences between the two tomorrow.
529 Plans are great, provided they have low expenses. They are excellent for grandparents who want to take money out of their estate and do something for their kids and grandkids at the same time. The grandparent is the owner of the 529 Plan and the grandchild is the beneficiary. If the child gets to college age and doesn't want to go to college, the grandparent can change the beneficiary and give the money to someone else.
For those interested,check out SavingforCollege.com. This is a very nice website dedicated to the 529 Plan.
I'll be back tomorrow!
529 Plans are great, provided they have low expenses. They are excellent for grandparents who want to take money out of their estate and do something for their kids and grandkids at the same time. The grandparent is the owner of the 529 Plan and the grandchild is the beneficiary. If the child gets to college age and doesn't want to go to college, the grandparent can change the beneficiary and give the money to someone else.
For those interested,check out SavingforCollege.com. This is a very nice website dedicated to the 529 Plan.
I'll be back tomorrow!
posted by JLP | 9:47 AM
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