Saving for college is one of the best ways to prepare for a bright future—and minimize the debt that many students carry after college. The more you save, the greater the rewards.
A college savings plan, or a 529 plan, is a great way to get started. Did you know that you can open a 529 plan for as little as $25? Saving for college is starting to sound a whole lot more affordable!
State-sponsored 529 plans offer several attractive benefits making them the ideal vehicle for saving for your loved one's college education:
- Tax benefits that can help your money work harder
- No age restrictions
- No income limitations
- Covers all qualified educational expenses at most colleges across the country:
- Tuition
- Room and board
- Books, computers
- Mandatory fees
- Control over investments and withdrawals
Many 529 plans offer the ability to invest in enrollment-based portfolios. For example, parents of a 4-year-old today could invest in a portfolio that is heavily weighted toward stocks, but will gradually swing back toward more conservative investments as the child enters his or her mid-teens. Account owners have the ability to change their 529 plan investments once per calendar year, or anytime they change the beneficiary on an account. As with any investment, account holders should assess their tolerance for risk. There are many helpful online calculators that will aid in determining how much you need to save per year for a college education, depending on how early you start.
UVEST DISCLOSURE
NOT A DEPOSIT - NOT FDIC INSURED - NOT GUARANTEED BY THE BANK - NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY - MAY LOSE VALUE
Securities and insurance products are offered by, and Financial Advisors are registered with, UVEST Financial Services, member FINRA, SIPC. 1st Mariner Bank and UVEST are independent, non-affiliated organizations.