A goal for 2008: saving for my child’s college tuition
Does the number ‘529′ mean anything to you? If you have kids who might go to college, it should ring a bell. The 529 Plan is a “tax-advantaged investment vehicle” (read: plan to encourage folks to save by giving a tax break or advantage for using the plan) that, for the intent and purpose of this single mother’s needs, focuses on a mutual fund investment plan that becomes more conservative as the child grows towards college age. That’s the savings plan.
FYI, there’s also a prepaid plan that allows you to buy tuition at today’s rates–but for today, I’ll skip that one. My brain hurts enough as it is.
You don’t have to buy into the 529 plan offered by your state. Weigh very carefully the tax advantages of doing this over the health and benefits of the plan itself. For example, a good financial adviser recommends the state of Virginia’s plan to clients all over the country, even though he doesn’t get a commission from them for doing so. Others I’ve known are using the Alaska plan, some the Utah one. Look over your options, and don’t be afraid to talk to a good financial planner. This one’s worth it.
As soon as the ex catches up on his child support payments, I’m going to open a 529 for the King of Everything.
Tags: 529, children, college savings fund, college tuition, kids, saving for college, single-mom, single-motherRelated Stories
POSTED IN: education
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