Are 529 plans the best way to save for college?
Time is your greatest asset. The sooner you begin planning, the better off you’re going to be. Remember, you don’t need to have the whole college tuition funded by the time junior steps on campus. That’s a big thing to keep in mind. When people see how much they have to save for college, it often forces them into paralysis and they do nothing. That’s the worse case scenario. At this point, also consider investing in yourself. As your child is getting older, consider getting an advanced degree or further your own education to get a better paying job. There are tax benefits you may be able to claim by going back to school, and/or your employer might even pay for it. If you improve your skills, then you can improve your cash flow so you can contribute more funds to your child’s college nest egg. If you get a bonus or a windfall, add a significant chunk of that money to the child’s college fund.
