529 Plan and College Savings

Archive for September, 2010

Question: 529 College Savings Plan; Help Understanding?

I’m looking into the 529 college savings plan for my son; he is seven. I’m not completely clear on how it works. Does the money accrue intrest? Is it like a mutual fund where the dividens are reinvested? It would be the Michigan 529 savings plan if that makes a difference between states. Thanks for your help!!

Answer: Here’s a great article regarding 529 plans:

http://money.cnn.com/2007/07/16/pf/college/529_guide.moneymag/index.htm

The one I have for my kids is like a mutual fund and the interest is reinvested.

Good luck!

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