How 529 College Savings Plans Are Better Than Other Investment Options
January 19th, 2008
The 529 College Savings Plans are certainly better than other investment options that you might be thinking of for your child’s future college education. There are many reasons for this. The first is that these plans are tax-deferred, which means you do not pay any tax on the investment, unless you withdraw it. That means, with this plan, you can allow your assets to grow faster since you do not pay tax. Also, these plans pay out adjusted to future inflation. This is absent in most other forms of investment. You have other small benefits, like the ability to change beneficiaries, make a pre-withdrawal with a 10% penalty, etc. These do qualify the 529 College Savings Plans as the best investment options for education.
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