Get a Jump Start on College Savings
If you have children, there is a decent chance that you have or have at least heard of 529 College Savings Plans. The plans are tax-advantaged savings accounts that you can take advantage of to pay for future college costs. The accounts are flexible and the beneficiary can be changed if needed. You can even take money out (albeit with a 10% penalty) for non-college related expenses.
Sometimes it makes sense to use an in-state sponsored plan but not always. Morningstar.com recently released their ratings for the Best 529 College Savings Plans. Their top plan picks for 2017 include:
- Illinois – Bright Start College Savings (Direct)
- Virginia – Invest529
- Nevada – The Vanguard 529 College Savings Plan
- Utah – Utah Educational Savings Plan
As mentioned above, take the time to research your decision. You may even qualify for a state tax break. Stashing away as little as $20 per week for a newborn could result in a savings of over $30,000! Wouldn’t it be easier to start now rather than worry about it later?