Are there special investments specifically for saving for college?
There are specific methods to save for an education. The advantages of using these types of investments are usually in the way the earnings that these generate are taxed. Some plans allow earnings to grow tax free until money is withdrawn for college, others allow money to be tax exempt provided the money is used for qualified educational expenses such as tuition, fees, books, etc., while other savings plans will even allow some tax deduction for your contributions. For any of these investments it is important to ask the following questions: • What sort of fees are associated with setting up and maintaining this type of plan? • Are there any restrictions on the schools that can be attended using the plan’s proceeds? • What happens to my investment if I don’t attend college by a certain time and/or don’t attend at all? Q: What are some specific options I should look at? A: There are a number of options available, each with distinct advantages and disadvantages. For example, Education IR
