My Personal Finance Journey

Personal finance observation, musing and decisions in a journey toward financial independence by 2020 with at least $3 million.


By Topics

Overall:
0. About (10)
1. My Progress (139)
2. Car & Home (107)
3. Credit (138)
4. Banking (33)
5. Saving (49)
6. Investing (308)
7. Taxes (89)
8. Spending (74)
9. Misc (97)
A. Archive (49)



MONTHLY ARCHIVE

Feb 2014 (3)
Jan 2014 (6)
Jan 2012 (1)
Apr 2011 (1)
Mar 2011 (1)
Feb 2011 (1)
Jan 2011 (1)
Dec 2010 (1)
Oct 2010 (1)
Sep 2010 (1)
Aug 2010 (1)
Jul 2010 (1)
Jun 2010 (1)
May 2010 (1)
Apr 2010 (1)
Mar 2010 (6)
Feb 2010 (2)
Jan 2010 (7)
Dec 2009 (3)
Feb 2009 (4)
Jan 2009 (8)
Dec 2008 (1)
Jun 2008 (2)
May 2008 (2)
Apr 2008 (5)
Feb 2008 (3)
Jan 2008 (15)
Dec 2007 (32)
Nov 2007 (6)
Oct 2007 (8)
Sep 2007 (9)
Aug 2007 (24)
Jul 2007 (2)
Jun 2007 (1)
May 2007 (3)
Apr 2007 (4)
Mar 2007 (4)
Feb 2007 (13)
Jan 2007 (6)
Dec 2006 (3)
Nov 2006 (7)
Oct 2006 (7)
Sep 2006 (6)
Aug 2006 (4)
Jul 2006 (10)
Jun 2006 (1)
May 2006 (3)
Apr 2006 (2)
Mar 2006 (6)
Feb 2006 (6)
Jan 2006 (3)
Dec 2005 (1)
Nov 2005 (9)
Oct 2005 (8)
Sep 2005 (13)
Aug 2005 (25)
Jul 2005 (16)
Jun 2005 (17)
May 2005 (19)
Apr 2005 (20)
Mar 2005 (24)
Feb 2005 (23)
Jan 2005 (36)
Dec 2004 (40)
Nov 2004 (34)
Oct 2004 (17)
Sep 2004 (21)
Aug 2004 (59)
Jul 2004 (37)
Jun 2004 (31)
May 2004 (29)
Apr 2004 (52)
Mar 2004 (49)
Feb 2004 (49)
Jan 2004 (31)
Dec 2003 (48)
Nov 2003 (52)
Oct 2003 (29)
Sep 2003 (8)
Aug 2003 (5)
Jul 2003 (2)
Jun 2003 (2)
May 2003 (5)
Apr 2003 (2)
Mar 2003 (2)
Feb 2003 (3)
Jan 2003 (29)



 

Saving For College, Part 6: 529 Prepaid Tuition Plan

Contributed by mm | December 27, 2004 6:30 PM PST

Compared to 529 Savings Plan, 529 Prepaid Tuition Plan is a completely different animal.

How It Works

529 Prepaid Tuition Plans are offered by states, which guarantees that contribution to the Plan will appreciate at a rate comparable to tuition rate increase in the state the Plan is offered.

Pros

- Peace of mind: You don't need to worry about which investment to choose and bother about rebalancing; you know for sure the money you put to 529 Prepaid Tuition Plans will match the tuition growth. (On the other hand, you should take this with a grain of salt: the guaranteed investment return in 529 Prepaid Plans is usually pegged to in-state publich schools, which may or may not match the college expense growth in private colleges.)

- Scale: The maximum amount of money you put towards 529 Prepaid Tuition Plans is usually much lower than you could contribute toward 529 Savings Plans, but it is still a large amount compared to the contribution limit in all types of IRAs.

- Donor Stays In Control: Same as 529 Savings Plans, the named beneficiary in 529 Prepaid Tuition Plans usually has no access to the funds. In addition, donors can change beneficiary to other members in the immediate family, usually without income tax consequences.

Cons

- Unfavorable Financial Aid Treatment: Distribution from 529 Prepaid Tuition Plan is treated as external resources like merit-based scholarships, which will reduce your calculated financial needs dollar for dollar.

- Narrow Scope of College Expenses: 529 Prepaid Tuition Plans usually only cover tuition and fees. Only some of the 529 Prepaid Plans allows to use some distribution for other expenses like room and board.

- Not Enough Return For Long-Term Savers: While college expense inflation is certainly big, it is still dwarfed by the long term return in the financial market. If you have many years (read as 10 years or longer) to save for your kids' college, you will probably better off by investing in the stock market.

My Personal Take

It is never advertised when states are promoting the 529 Prepaid Tuition Plans, but the unfavorable financial aid treatment is really bad news for all parents. If parents keep the same amount of money in regular brokerage account, only a total of up to 25% may be expected from family contribution for four years, compared to 100% once you put the money to these 529 Prepaid Tuition Plans. Especially, if your kids are close to college age, you are probably doing a disservice by contributing to 529 Prepaid Tuition Plans.

Covedell Education Savings Account will be the next college saving tool we will look into.

(This article is a component of the 10-part "Saving for College" series at PFBlog. If you want to read from the start, follow the links at this Table of Contents page.)

This Post Has Received 15 Comments. Share Your Opinions Too.


Finna lvus Commented on July 17, 2017


Dorothylow Commented on July 18, 2017

Revolutional update of SEO/SMM package "XRumer 16.0 + XEvil 3.0":
captchas recognition of Google, Facebook, Bing, Hotmail, SolveMedia, Yandex,
and more than 8400 another size-types of captchas,
with highest precision (80..100%) and highest speed (100 img per second).
You can connect XEvil 3.0 to all most popular SEO/SMM software: XRumer, GSA SER, ZennoPoster, Srapebox, Senuke, and more than 100 of other software.

Interested? You can find a lot of impessive videos about XEvil in YouTube.
See you later!


XRumer20170718


Antoshkafen Commented on July 25, 2017

Greetings!

Best resume and cover letters templates.

[url=https://www.etsy.com/shop/ResumeX]Download resume templates in Words' doc-file with high print quality and creative forms, prepare a polished cv and win your dream job.[/url]

These resume templates made by professionals who realize what recruiters look for.

Where to start?

STEP 1: Idea. Begin by putting together the content of your resume. Bring into focus work experience, summary of qualifications, keywords and any other important info that makes a powerful resume. [url=http://www.rawresume.com/]“How to Write a Great CV”[/url] will take you through the whole game step by step.

STEP 2: Format chronological, functional or combination. Make sure you present your career in the style that highlights your experience, education, and skills the best thinkable way. See [url=https://www.jmu.edu/cap/students/jobintern/resumes/format.shtml]“Choosing a Format” Guide by James Madison University[/url] to decide which format is the best for you.

STEP 3: Appearance. [url=https://www.etsy.com/shop/ResumeX] Find the superb template to ‘dress up’ your content[/url]. This shop has different templates to choose from.

Bye!


CarolynSmese Commented on August 5, 2017

Revolutional update of SEO/SMM package "XRumer 16.0 + XEvil 3.0":
captchas regignizing of Google, Facebook, Bing, Hotmail, SolveMedia, Yandex,
and more than 8400 another types of captcha,
with highest precision (80..100%) and highest speed (100 img per second).
You can connect XEvil 3.0 to all most popular SEO/SMM programms: XRumer, GSA SER, ZennoPoster, Srapebox, Senuke, and more than 100 of other software.

Interested? You can find a lot of impessive videos about XEvil in YouTube.
You read it - then IT WORKS!
See you later ;)


XRumer201708


CarolynSmese Commented on August 6, 2017

Revolutional update of SEO/SMM package "XRumer 16.0 + XEvil 3.0":
captchas breaking of Google, Facebook, Bing, Hotmail, SolveMedia, Yandex,
and more than 8400 another categories of captcha,
with highest precision (80..100%) and highest speed (100 img per second).
You can connect XEvil 3.0 to all most popular SEO/SMM software: XRumer, GSA SER, ZennoPoster, Srapebox, Senuke, and more than 100 of other programms.

Interested? You can find a lot of demo videos about XEvil in YouTube.
You read it - then IT WORKS!
Good luck ;)


XRumer201708


Leeannbrilk Commented on August 11, 2017

Absolutely NEW update of SEO/SMM package "XRumer 16.0 + XEvil 3.0":
captchas regignizing of Google, Facebook, Bing, Hotmail, SolveMedia, Yandex,
and more than 8400 another subtypes of captcha,
with highest precision (80..100%) and highest speed (100 img per second).
You can connect XEvil 3.0 to all most popular SEO/SMM software: XRumer, GSA SER, ZennoPoster, Srapebox, Senuke, and more than 100 of other software.

Interested? You can find a lot of introducing videos about XEvil in YouTube.
You read it - then IT WORKS!
See you later!


XRumer201708c


Maryabrilk Commented on August 19, 2017

http://xrumersale.site/

Absolutely NEW update of SEO/SMM software "XRumer 16.0 + XEvil":
captcha solution of Google, Facebook, Bing, Hotmail, SolveMedia, Yandex,
and more than 8400 another subtypes of captcha,
with highest precision (80..100%) and highest speed (100 img per second).
You can connect XEvil 3.0 to all most popular SEO/SMM software: XRumer, GSA SER, ZennoPoster, Srapebox, Senuke, and more than 100 of other programms.

Interested? You can find a lot of introducing videos about XEvil in YouTube.
You read it - then IT WORKS!
Good luck ;)


http://xrumersale.site/
XRumer201708yy


Maryabrilk Commented on August 19, 2017

http://xrumersale.site/

Absolutely NEW update of SEO/SMM package "XRumer 16.0 + XEvil 3.0":
captchas breaking of Google, Facebook, Bing, Hotmail, SolveMedia, Yandex,
and more than 8400 another size-types of captchas,
with highest precision (80..100%) and highest speed (100 img per second).
You can connect XEvil 3.0 to all most popular SEO/SMM software: XRumer, GSA SER, ZennoPoster, Srapebox, Senuke, and more than 100 of other programms.

Interested? You can find a lot of demo videos about XEvil in YouTube.
You read it - then IT WORKS!
Good luck ;)


http://xrumersale.site/
XRumer201708yy


Maryabrilk Commented on August 20, 2017

http://salexrumer.site/

Revolutional update of SEO/SMM package "XRumer 16.0 + XEvil 3.0":
captcha breaking of Google, Facebook, Bing, Hotmail, SolveMedia, Yandex,
and more than 8400 another subtypes of captchas,
with highest precision (80..100%) and highest speed (100 img per second).
You can connect XEvil 3.0 to all most popular SEO/SMM programms: XRumer, GSA SER, ZennoPoster, Srapebox, Senuke, and more than 100 of other programms.

Interested? There are a lot of introducing videos about XEvil in YouTube.
You read it - then IT WORKS!
See you later!


http://xrumersale.site/
XRumer201708yy


Maryabrilk Commented on August 21, 2017

http://salexrumer.site/

Absolutely NEW update of SEO/SMM package "XRumer 16.0 + XEvil 3.0":
captcha regignizing of Google, Facebook, Bing, Hotmail, SolveMedia, Yandex,
and more than 8400 another categories of captcha,
with highest precision (80..100%) and highest speed (100 img per second).
You can connect XEvil 3.0 to all most popular SEO/SMM programms: XRumer, GSA SER, ZennoPoster, Srapebox, Senuke, and more than 100 of other programms.

Interested? There are a lot of demo videos about XEvil in YouTube.
You read it - then IT WORKS!
Good luck!


http://salexrumer.site/
XRumer201708yy


MichaelNub Commented on September 14, 2017

[url=http://buy-bupropion.store/]bupropion er[/url] [url=http://tadalis-sx.pro/]tadalis sx[/url] [url=http://buy-sildalis.shop/]buy sildalis[/url]


CharlesLiede Commented on September 14, 2017

[url=http://costofviagra.news/]viagra[/url] [url=http://priceoflevitra.pro/]levitra[/url] [url=http://buydoxycycline.work/]buy doxycycline[/url]


KennethCed Commented on September 15, 2017

[url=http://doxycyclineprice.us.org/]doxycycline price[/url] [url=http://effexorxr.us.org/]Effexor[/url]


CharlesLiede Commented on September 15, 2017

[url=http://citalopramhbr20mg.store/]citalopram[/url] [url=http://retina.fund/]retin-a[/url]


CharlesLiede Commented on September 16, 2017

[url=http://furosemide20mg.pro/]furosemide[/url] [url=http://zithromaxonline.pro/]where can i buy zithromax online[/url]


Add Your Comments










Remember personal information?




(It will take a few moments for your comment to be published. Please do not close the window until then.)


Read More ... 50 Posts In The Same Category










This page was last rebuilt at September 16, 2017 09:26 AM PST. (473 Words)
 

RSS FEED





PERSONAL FINANCE BLOGS I READ

Consumerism Commentary
Get Rich Slowly
My Money Blog
All Financial Matters
The Simple Dollar






.



Copyright 2003-2014, PFBlog.com. All Rights Reserved. (Privacy Policy)