| The costs of a college education continue to rise | | | | investment earnings will grow to meet the higher |
| like a hot air balloon and many fear that they will | | | | costs of future education or you will have already |
| soon be beyond their reach. Some experts have | | | | prepaid for your child's college education. Most |
| estimated that the cost of an average four year | | | | people favor the savings account option because |
| program at a public college or university may cost | | | | they feel that is most attractive but it really |
| as much as $100, 000.00 in fifteen years from | | | | depends on your individual finances and your risk |
| now. That's a lot of money, regardless of your | | | | tolerance. |
| current income. | | | | A 529 plan is a state-sponsored investment |
| The good news is that you can play now to avoid | | | | program. That means that your state sets up the |
| that super-hit later on. You may not be able to | | | | plan with an asset management company and |
| control the costs of a college education, but you | | | | you open a 529 account with that asset |
| can find ways to lesson that blow. One way is | | | | management company that must live with the |
| through a 529 college education savings plan and | | | | state's desired plan features. You still own the |
| even if your child does not decide to go to | | | | account and you designate a child as the |
| university later on you can roll it over to someone | | | | beneficiary of that account. All of your dealings will |
| else in the family who does. | | | | be directly with the asset management company |
| A 529 plan is named after its section number in | | | | that has been designated to manage the 529 plan |
| the IRS code is a savings plan for college | | | | for your state. |
| education and when you open an account you | | | | Depending on the state you live in there will be |
| have a number of options to choose from. | | | | variances in some of the procedures that you |
| Those options include prepaying tuition at a | | | | have to follow and conditions on the asset |
| qualified educational institution at today's tuition | | | | management companies investment strategies. |
| rates or you can save money in a tax-deferred | | | | Most plans are very similar but there are no |
| account that can only be used to pay for | | | | restrictions on which state you choose to invest |
| education at future tuition rates. | | | | in so it may be worth your while to check around. |
| 529 accounts work because either your | | | | |