I have long argued the benefits of saving for college using a 529. The list of 529 college savings plans is long. 529s are low maintenance, they are flexible, they allow for large investments, reporting them on your taxes is easy and most important of all the assets grow TAX FREE. In a world where we are so overtaxed any income you can generate that won’t be subject to upwards of 50% going to Uncle Sam you should take advantage of. Even if you don’t have kids of your own you can open a 529 in your own name and use it for your own continued higher education like studying Spanish in sunny Cuernavaca, Mexico.
CNN Money agress with me. And I quote, “If you’re planning to save for college and have no reason to think your kid won’t go, a low-fee 529 is the best savings tool - regardless of what anyone tells you.” Walecia Konrad wrote a great article for CNN money titled The Best Way To Save For College. She goes into an in depth analysis of 529s by the numbers. The bottom line is a 529 is the best savings vehicle, Period!
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