DID YOU JUST WELCOME A NEW PERSON INTO YOUR FAMILY?
Possibly it’s your child, grandchild, niece, nephew, etc? We’ll, now is the perfect time to fund their higher learning.
A CNNMoney article suggests here that the class of 2013 grads average $35,200 in total debt. You certainly do not want your loved ones graduating with interest incurring loan debt that may take years to pay off.
So what can you do? Lotto tickets? No, not quite. There are no guarantees that you will win and the BCC does not encourage gambling.
One smart solution is to invest in a 529 plan or similar or something similar. A 529 plan is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs. To find out more about a 529 plan visit savingforcollege.com.
Don’t have as masters degree in finance? No problem. You can actually apply for many of these 529 plans yourself through banks and investment firms.
It can be done for as little as $50.00 a month and there are great tax advantages, which you can find on the previously mentioned website. We also recommend you examine the program at your local bank, credit union or investment firm.
Through our investigation into such programs we found that the investment companies, T.Rowe Price and Franklin Templeton are good places to start your planning. Be sure to check plans online in the beneficiaries resident state, as plans vary throughout the country.
Just think, your family member starting their professional life with little or no college debt.
So check it out. We need that college graduate and they don’t need the debt.