Start Saving Now for College

It’s really never too early to start saving for your children’s college education. One of the best ways to accomplish this important move is with a 529 college savings plan in order to generate some tax-free savings to cover college costs. I’ve started plans for both of my sons and they’re only 5 and 1 now. I figure this early start will help decrease the pain of a pricy college education when the tuition fees start to roll in when they’re older.

There’s a lot of information available on 529 plans, and it pays to research them as much as you can. There is quite a bit of variety with these plans and no two are really alike. Some of the plans have some pretty hefty fees while others are more reasonable. Many states have multiple plans, catering to different strategies based on your needs and goals.

You can certainly utilize the help of a financial planner if you need, but there is no reason not to go it alone and research the best plan for you. Most states have multiple investment plans and flexible contribution options. In many cases, it is best to pick the plan for your own state due to state-tax savings that these plans can afford. Despite this advantage, however, don’t be afraid to shop around for other state plans. There are no rules that say you have to use your state’s 529 college saving’s plan as many plans are open to non-residents.