If your budget allows and you are a Florida resident, we always recommend a Florida PrePaid Plan; primarily because it locks in future tuition costs. Once you’ve purchased the Florida PrePaid Plan, you may want to consider opening a 529 Plan to potentially earn a higher return by investing in equity funds through that 529 Plan.
Facts About 529 Plans
We consider this savings option a high yield, tax-free bond.
- Earnings are tax-free when used for qualified higher education expenses.
- No minimum contribution is required to open an account, and on-going contributions can be any amount, and with a frequency you determine.
- The risk magnitude is dependent on the investment options selected.
As we have covered in other posts, with the risk of this vehicle, comes some reward. There are flexibilities that make it an attractive option for funding your child’s education. Options that suit a variety of incomes and household situations are distinctive traits of a 529 Savings Plan which feeds conservative to aggressive investment appetites.
If you would like help choosing and investing in a 529 or College PrePaid Plan, please contact me at firstname.lastname@example.org or (813) 282-7870. While we believe a college education is important, we also understand it is expensive, and the process is daunting.
We do not charge fees for helping with 529 Plan accounts. We get two benefits from helping you: 1) as parents ourselves, we feel good about setting you and your child on the correct path to pay for college and 2) it enables us the opportunity to begin a discussion about your other investment needs.
If you have a question beyond the scope of this article, feel free to visit our “Ask Us a Question” page or leave a comment below so we may assist you with your specific situation.