It is that time of year when the air turns cooler, the leaves begin to change color, and the kids return to school. Some of you may already have children in college and know the financial burden a good education can be. Others may be setting up a savings plan for the first time. This post is geared toward you.
You have probably heard of something called a “529 plan.” This type of college savings plan is named after the section of the Internal Revenue Service code in which the plans were created. I found an excellent article on, of all places, the SEC’s website. In plain English, it explains the difference between the two types of 529 plans, tax benefits, and other interesting tidbits. Here is the link: http://www.sec.gov/investor/pubs/intro529.htm
Another great site to visit is www.savingforcollege.com. You can learn about the 529 plans offered in your state. The site has information about financial aid, scholarships, and lots of other things.
At Parsec, we are familiar with the basics of 529 plans. Your financial advisor will be happy to answer any questions you might have, although we do not personally setup 529 plans. We can guide you to resources with which we have experience.
Saving for your child’s college education does not have to be a painful experience. As you have learned with your retirement savings, the best approach is to develop a plan and stick with it. Utilizing a 529 plan might be a way to accomplish your goal.
Cristy Freeman, AAMS
Senior Operations Associate