Best 529 Plans Are Those That Suit Your Needs
If you are worried about the expenses of your child's higher education, then experts say that you should chose the best 529 plan suiting your need. A 529 plan is the best options for funding your ward's college education. Read more to know what exactly is a 529 plan and how it is one of the best options for your child future educational needs.
There are two types of 529 plans. They are: * College Savings plan. * Prepaid Tuition Plan.
In a prepaid tuition plan the parents can pay the current tuition rates without worrying about the higher education fees when their child grows up and goes to college. This 529 plan is not the best option for you because if your child does not go to that college then your money is lost.
One more factor to ponder upon while going for a prepaid tuition plan is that in this program there are not many investing options. This plan utilizes the prepaid tuition fee in its own investments. This is done in order to compensate for the difference in the tuition while the child starts going to school. Investment risk is not into the hands of parents but it is in the hand of the program.
529 college savings plan is considered to be one of the best investment options. These programs are formulated to aid students save for all the expenses incurred during their higher education. These expenditures include books, boarding charges, computers, tuition fees etc.
A College savings plan has many advantages over a Prepaid Tuition plan. These advantages are as follows: * These programs are not limited to one school or state. * The investment options are very flexible. * These plans are not bound to children only. Adults can also participate.
It is to be emphasized again that best 529 plans are those that suit your needs. To choose what is best, you should know what your requirement is.