Secure Your Child’s Education With a Plan 529
Plan 529: From childhood his children dream of being doctors, artists, teachers, veterinarians, etc. In order for them to fulfill their dreams and train as professionals, it is important that they complete their university studies.
A good university education can ensure the future of your children and although it is a major investment, there are some plans that can help you pay for these studies with greater flexibility.
The money destined for the studies is always a good investment
Known as “classified enrollment plans,” Plan 529 allow you to start saving early so that you can pay for college in your future. These plans are generally sponsored by states, state agencies, or educational institutions.
The types of Plan 529 available are:
1. Prepaid enrollment plans. Also called in some states “Guaranteed Savings Plans,” they keep the current costs of education in public universities so your child can study in the future without having to pay extra money. Some private study centers also offer these types of plans.
2. College Savings Plans. It is similar to a 401k retirement account with the difference that the money you invest will be used solely to pay for your children’s education. You can choose the amount (tax free) that will be deducted from each paycheck. The amount saved will be spent to pay for college when the time comes or to invest in any expenses related to studies, such as housing, books or other school materials.
To open a Plan 529, you must contact your state program managers.
Depending on your choice, Plan 529 offer you the opportunity to:
Select any plan regardless of your income and the age of your children.
Transfer your plan from one state to another as per your convenience. Use the tool to compare plans by state (in English).
Have control over your money and manage it the way you want.
Allow anyone to contribute to your savings plan, be it a family member or a friend.
Place your plan in the name of another person to pay for your studies.
Plan 529 College Savings Plans are tax-free as long as the money is used to pay for college. If for some reason you decide to use your savings for another purpose, you can withdraw the money but you will have to pay the due taxes and a penalty.
Resources that use the College Savings Calculator to determine the amount you must keep to pay for your child’s education. The budget calculator will help you compare your college expenses and your income.