| 529 Plans: What’s Important? (2005-10-17) |
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marotta
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| 529 Plans: What’s Important? (2005-10-17) |
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529 Plans: What’s Important? (2005-10-17)
by David John Marotta
529 plans are the best vehicle to save for college. But which one? Nationwide there are hundreds. In Virginia there are two: VEST (Virginia Education Savings Trust) and CollegeAmerica. There are several questions to address before the investor can make a wise choice.
Read the complete column at http://www.emarotta.com/article.php?ID=149
David John Marotta
Marotta Asset Management, Inc.
Fee-only Financial Planning
http://www.emarotta.com
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Thu Oct 20, 2005 2:00 pm |
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auggyf
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Thanks for the article.
At the end, you mention "You can never start too early." What do you think about putting money into a 529 for a not-yet-existent child, if there is extra money to be had? Would you consider that too early, or is it optimal?
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Thu Oct 20, 2005 3:52 pm |
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jlee1224
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I think that would be too too early. I would make sure that you definitely have a child, then start. If you want to start saving now, put the money aside in an account, then when you start the 529, you can put it in to start.
I like 529 plans for young children, who have more than 10 years until college (at least), so you have time to ride the stock market. I don't like that there are sooo many and the restrictions sometimes are heavy. Read up, do your homework, and you'll find a very good one.
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Thu Oct 20, 2005 7:15 pm |
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sayyes
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I always advise people to max out their retirement savings before contributing to any child education fund.
It may sound selfish, but you can get loans for school, but you can't get loans for retirement! Plus, the loans for school have tax advantages.
Also, just remember that if you do run out of money in retirement it is your children who are going to have to pick up the bill, so in the long run it will benefit them as well (larger inheritance!).
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Thu Oct 20, 2005 10:37 pm |
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