Tuesday, February 12, 2013

College 529-Savings Plans

State 529 college-savings plans vary; not all states issue them.

Plans differ, depending on the options available in each state. I like only low cost index funds as investments; your choice ought to be made on any overall, net advantages your state plan may give you.

Another consideration should be the advantage or disadvantage for a student when seeking a scholarship, in having a 529. Is its tax benefit worth having, in view of the scholarship determination by the school, despite any investment benefits you may get?

Incidentally, some states offer lotteries to bolster 529 use. Such merchandising makes the program suspicious.(See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)

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