Motley Fool writer Rich Duprey suggests an alternative to spending your “tax rebate” check from the government. Duprey points out that your $1200 can turn into $6,600 by the time your kid goes to college:
Put your kids through college
The way tuition costs have risen lately, you’re probably not going to be able to turn that $1,200 into enough to put Johnny through four years of higher education. The College Board says that the average cost of a private, four-year college is $23,712, up 6.3% from last year, while public colleges cost on average $6,185 a year. And that’s just for tuition and fees. Still, $1,200 invested in a 529 plan for 18 years at 7% interest is more than $4,000, while at 10%, you’ll get more than $6,600.
And that doesn’t even consider the tax benefits of the investment.
All 50 states (plus Washington D.C.) on 529s.com now have updated profiles! Read about each of their 529 plans, the costs, minimums, maximums, tax breaks for in-state residents, and more.
I’d like to thank my intern Erin for pulling together all of this data.
As 529 plans change their rules and numbers, you’ll read about it here. If you notice anything on our profiles that isn’t right, please send me an e-mail.
Welcome to the 529s.com blog! Here’s a little background on the site.
I have a two year old daughter. Shortly after she was born I started researching college savings plans for her. I quickly settled on a 529 plan, but finding the ideal plan was difficult. Few sites cover 529 plans and offer the important information needed to choose the best 529 plan.
I was going to start a 529 college savings site, but came across an existing one — 529s.com — that needed updating. I bought it, relaunched the site, and here we are. 529s.com offers information on all 50 states’ (plus Washington D.C.’s) 529 plans.
This blog will cover things you need to think about when choosing a 529, updates about 529 plans, and ideas for saving for college.
Stay tuned!