Your kids and grandkids will thank you later
Stephen Stribling //January 21, 2016//
Your kids and grandkids will thank you later
Stephen Stribling //January 21, 2016//
If you haven’t done so already, 2016 may be an opportune time to start saving for your children or grandchildren’s college education – while giving yourself a tax break in the process.
Last year, the average out-of-state tuition and fees for one year at a public four-year college or university increased 3.4 percent to $23,893. Tuition and fees for private nonprofit four-year institutions rose even higher at 3.6 percent over the same period to $32,405. By establishing a 529 plan, you’re not only taking advantage of a tax benefit but also giving a child or grandchild a helping hand toward alleviating the skyrocketing costs of higher education.
Here are some common questions asked about 529 plans:
What is a 529 plan?
What are the advantages of a 529 plan compared with other college savings options?
Does investing in a 529 plan affect scholarship opportunities?
How does a 529 savings plan affect financial aid?
You may want to consider contributing to a 529 plan as a gift for birthdays and holidays. While this may not be your children’s or grandchildren’s favorite present, I promise that they will come to appreciate it come college time.