STOCK 529
STOCK 529
Which College Savings plan is better?
For the next 18 years I will be saving for my daughters college tuition. Which of these plans do you think will be cheaper for me and be more beneficial?
-A Texas College Savings Plan that locks in today's price of tuition to use when she goes to school in 18 years. (Tuition at a major 4 year university is approx. $57k now). My payment would be $260/mo. for 18 years.
-OR a 529 plan that is invested in the stock market. (This does not lock in current tuition rates.)
Which do you think would be cheaper per month and benefit more in the long run?
On these plans your earnings grow tax deferred. Also, I can change the beneficiary to someone else if she doesn't want to attend college. I plan on having another child and I have nieces and nephews.
Good question Lucy Lu. The interest rate is 8% annually for the Texas plan. And I guess it can't grow. But I don't have to claim the contribbutions as income.
I have always loved the 529 plan. But the Texas plan sounds good, but
what are the inerest rates on it. Since both are tax deferred, how is the $ going to grow in the Texas acct.?
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