College Savings Plan
In today’s increasingly competitive job market, a college degree is absolutely essential in order to obtain a well-paying, respectable job that offers chances of further advancement. College graduates, on average, make about 74 percent more than high school graduates annually. Going to college also allows you to pursue your interests, increase your knowledge in a particular field and develop the skills required to succeed in the workplace. Simply put, investing in a higher education is investing a better future for yourself or your kids. In the past decade or so, however, the average tuition costs at public institutions have gone up by nearly 51 percent. These costs will continue to rise, and the turbulent economy isn’t helping anyone either.
Having a college savings plan is guaranteed to help you when it comes to covering the cost of tuition and other expenses. Saving even a little can go a long way as long as you set aside a certain amount regularly. A 529 college savings plan is a specially designed, tax advantaged plan designed to help families save enough money to meet future college expenses. These plans allow your investment to increase tax-free, and provide a number of other benefits including income tax breaks and state tax benefits. As a participant in a 529 college savings plan, you retain complete control of funds and can withdraw the amount at any time. You can also move your investment to a different type of plan, or to a different state’s program. Each state offers specially designed 529 savings plan that have their individual benefits.
Saving for college is no longer a tedious task thanks to 529 college savings plans. Joining such a program is as easy as one-two-three. Just fill out a simple form, make a sign up contribution and then forget about it! There are no income restrictions with some states having minimum monthly payment limits of just $15. Most importantly, 529 savings plan allow you to finance an education at nearly every accredited college in the country. All in all, college savings plans are a great way to cover college costs and allow you to make the most important investment in your and your children’s lives.