1) 529 Plans –
Many believe the 529 college savings plan to be one of the best ways to save for college costs. Named for the part of the federal tax code created in 1996, it allowed a parent to open a tax-deferred savings plan and any withdrawals are completely tax-free if used to pay for a beneficiary’s college tuition, fees, books, supplies and room and board (if the student is enrolled at least half time). Start when your child is young, as this will provide many more years of savings growth and compounded interest. See my e-mail below to request The Top 10 Things Everyone Should Know About 529 Plans.
2) Florida Prepaid College Plan – MyFloridaPrePaid.com
The Florida prepaid plan allows you to make a monthly payment or lump sum toward future tuition and room and board college costs. It does this at today’s rates to cover future costs. You can visit the website above to enter your child’s age and the plan you want to prepay to calculate the monthly or lump sum amount for your family. The advantage of this plan is that as long as you make all the payments, the tuition will be covered regardless of future costs. This plan applies to state and local colleges only.
Next to retirement, college planning is one of the most serious aspects of financial planning, because it influences a young adult’s total lifetime earnings. There are numerous other creative ways to plan for, pay for and create great cost savings as you prepare and complete a college education. Please e-mail me to request the informative publication The Top 10 Things Everyone Should Know About 529 Plans.
Jeffery Masters, President of Jeffery W. Masters & Associates Securities offered through LPL Financial, member FINRA/SIPC Investment Advise offered through Independent Financial Partners, a Registered Investment Advisor. Independent Financial Partners and Jeffery W. Masters & Associates are not affiliated with LPL Financial. Jeff is a Locally Endorsed Investment Advisor by Dave Ramsey. Email Jeff at: Jeffery.Masters@LPL.com.