Picking a 529 College Savings Plan.QA I want to begin saving for my daughter's college education and I need assistance in understanding the 529 College Savings Plan. I've I've Contraction of I have. I've I have I've have been reading so much material and honestly, I am confused. How do you pick the right state and rate? --P. McGhee Via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the For starters, investigate plans in your own state to see if you benefit from any state tax breaks. To get the best deal, avoid plans that charge high fees and be sure that the choices within the plan you choose are investments you would feel comfortable owning outside of the plan. Look for direct-sold plans as opposed to adviser-sold plans, unless you can invest in the latter type directly without paying a sales load Sales load See: Sales charge sales load See load. (up-front up-front or up·front Informal adj. 1. Straightforward; frank. 2. Paid or due in advance: up-front cash. adv. fees as much as 5% of the portfolio). Some states allow their residents to buy adviser-sold funds without paying loads. Compare various plans disclosure documents. Also, you can compare the features of different state plans at Morningstar's 529 Center (www.morningstar.com html) and Saving for College (www.sav ingforcollege.com). In comparing one state's offering to another, ask a series of questions such as who is the fund manager? Does the plan offer a variety of mutual funds, including fixed-income investments? Does the plan impose any harsh restrictions? To find out more about 529 plans, also check out www.independent529plan,org and www.bankrate.com. Mail your money management questions to Money Matters, BLACK ENTERPRISE New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10011 130 Fifth Ave AVE Avenue AVE Average AVE Alta Velocidad Espanola (train between Madrid and Seville) AVE Alta Velocidad Española (Spanish: High Speed Train) AVE Audio Video Entertainment AVE Advertising Value Equivalent , New York, NY 10011 or send an e-mail to brownc@blackenterprise.com. |
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