What is a 529 college savings account.?

Question

This a financial advice from Google. The original advise is as follows:-

"Invest in a 529 college savings account. It's tax-free. What more needs to be said??

Answer 1

A 529 college savings account is a tax preferred way to save for higher education expenses. It is really a good idea if you want to go back to school eventually or if you want to help your kids pay for college at some point.

As with all investment products, there are tons of people out there who try to make as much money off of you as they can by selling you products with high fees. Fortunately there are cheaper options available.

I suggest that you click on all links you get in the answers to your questions. Each one of them probably adds a little bit to your knowledge. The link I add to the list contains links to state plans. Many states give state residents additional tax breaks if they invest in that state's state-sponsored plan.

Answer 2

A 529 college savings account is money that can only be spent on school or school related expenses for a beneficiary. The profits that are earned ARE tax-free.

I recently sat down with a financial advisor and he tried to enroll me in one where I had to pay large fees similar to a mutual fund. Around 5%-6%!!

Then I did my homework and at tiaa-cref through my state, I can enroll with a non-profit company. The fees are a fraction of what it would have been through the financial advisor. So look around but you should not have to pay large fees to start a 529 plan for your son or daughter.

Answer 3

View It Now    FinanceExtends (dot) com

Answer 4

This is a vehicle to help someone save for college like 401Ks is for retirement.  This is where I found out what it is and I thought it was helpful.  

https://personal.vanguard.com/us/account...

Answer 5

A 529 is a really good idea. Here's more info:

http://money.howstuffworks.com/529.htm

http://en.wikipedia.org/wiki/529_plan