For each state there is a college savings program. Is that done on line or does each bank have their own indi?each bank have their own individual one? I am in New York. What are some key points to know about NY's or any 529? | |
For each state there is a college savings program. Is that done on line or does each bank have their own indi?each bank have their own individual one? I am in New York. What are some key points to know about NY's or any 529? | |
You will find information on the State of New York 529 College Savings Program on this state government web page and in the links given on that page:
https://uii.nysaves.s.upromise.com/
This is the link to the program FAQs and answers:
https://uii.nysaves.s.upromise.com/conte...
There is way to much information you need to learn about the program for me to give you a synopsis that will fit into the space available for Y!A.
Librarians--Ask Us, We Answer!
Find your local Public Library at:
http://publiclibraries.com/
Find your College/University Library at:
http://lists.webjunction.org/libweb/Academic_main.html
Best wishes
As you probably know, 529 plans (named after a section of the U.S. tax code that defines them) are an investment instrument designed to provide for college tuition costs. The prime benefit of the 529 plan is that the principal grows tax-deferred and distributions for the beneficiary's college costs are exempt from tax. Only states can administer 529 plans, but typically they assign or delegate record-keeping and administrative services to a mutual fund company or other financial services company.
A key thing to know about 529s is that they're an investment vehicle, with the money you contribute invested in stocks (chiefly) or bonds and other instruments. Thus, the value of your investment is dependent upon stock market action, and it can go up or down in value. A good piece of advice is that, if you child is at least 18 years away from beginning college when you begin a 529 and need the money, then your investment will likely be up.
If you start a 529 when your child is 17, however, you make need the money for college tuition just when the market--and your 529's value--takes a dip.
Investor beware, always. Good luck!
Next time give details.
Ask in Business and finance - there are some experts on this out there.
You need to know things such as
- Fees if you deal with banks instead of discount brokers
Banks will tend to have high fee mutual funds.
- How you can only change investments once a year.
- If your child is 4 years out - you might not want to do this.
You might want to put money into debt to get more in financial student aid loans.