Is saving for college your New Year's Resolution?
Most parents would agree that saving money for their child’s education is important, but the biggest challenge is taking the first step. One easy way to start is with a 529 account, and Maryland’s College Savings Plan is worth checking out. There are potential state tax savings with such an account, and you can get started with as little as $25 per month. The Plan just released its annual report, showing overall investment growth of over 18%, and a fee reduction was recently announced. Maryland also offers a pre-paid plan, which is regularly audited to ensure adequate funding.
I’m a big fan of Maryland’s 529 Plan, but there are lot of other options out there for college savings. Many of them, such as EE U.S. Savings bonds, Coverdell accounts and insurance products also can offer tax advantages or financial aid advantages. Working with a financial advisor can help you figure how much you will need to save, strike a balance with your other financial goals, which options are best for you, and even help you create a budget. Whatever your goal is, starting early is the key. Don’t wait until you have paid off debt or landed your dream job, start today!