What is the best way to save money for college using 529 Plans?
The possibilities might seem endless; here are five basic strategies you can use, and a brief analysis of the positives and negatives of each strategy. And don’t worry; as long as you’re saving for your kids’ education, you are doing the right thing. Strategy Number One: Create Separate Accounts Funded Equally This strategy is simple: Set up as many 529 Plan accounts as you have children, and each year contribute an equal amount to each Plan. It’s simple and easy, and should let you take advantage of tax breaks offered in your state, since many states allow you to take a tax deduction for funds placed in each child’s account. The problem, of course, is that unless your children are twins (or triplets), the accounts will end up unequally funded. One way around that outcome is to set up accounts as soon as each child is born and contribute an equal amount to all accounts; when each child is ready for college his or her account will have the same amount as the other kids’. This is a great
