529 Plan and College Savings

Archive for May, 2008

Question: 529 savings vs prepaid?

We are trying to stay ahead of the game. I have 2 children age 3 & 1. My husband and I don’t have too much excess money, so last year we started a Michigan Education trust prepaid plan. We went with the 2 year community college package ( came out to $48 month ) spread over 15 years. I want to start something for my 1 year old. I am soooo confused as to what route to take with her. I can’t really change his now I don’t think…..Not sure which one is better savings or prepaid. Like I said….we don’t have that much, but we want to at least get them started. thankyou for reading

Answer: Kids might want to go elsewhere, however, the deal is better on the state program. The 529 program has more versatility.

Good on you for looking ahead and planning now. Good luck and I hope it works for you.

AWZ – Deniz & Roman – Episode 529 (English Subtitles)