Investment News Explains Benefits of Prepaid Tuition
Recent growth in membership of Private College 529 Plan is an important reason for financial advisors to encourage their clients to explore the use of this non-traditional, prepaid investment vehicle, according to a recent article in Investment News magazine, a publication widely read by the nation’s financial advisors.
“With more than a dozen Midwestern liberal arts schools recently joining the Private College 529 Plan, the nation’s only prepaid college tuition plan sponsored by private schools, advisers and their clients need to weigh the pros and cons of such plans,” the story says.
Citing a recent survey of more than 880 of the Plan’s account owners, the story notes that “the certainty of knowing they have paid for tuition, or a certain percentage of tuition, is an important feature to many of the more than 6,000 families who have accounts.” Over half (53 percent) of the account owners surveyed said “guaranteed tuition” was the top reason they participated in the plan. You can read the full article here.
“The guarantee against college tuition inflation and the breadth of schools is terrific,” said Wil Smith, director of wealth management for Crown Wealth Management in California. Smith recommends clients who want to save for college consider the Private College 529 Plan, where he has personally opened accounts for his two children.
Private College 529 Plan is governed by the same section of the federal tax code as all other 529 plans and account owners receive the same federal tax advantages.
Now is a great time to open or add to a Private College 529 Plan account before new tuition rates take effect July 1. You pay no fees and tuition is guaranteed. Learn more about opening an account here.
Nancy Farmer, President of Private College 529 Plan, wants families to consider every option available to them when it comes to their college savings efforts -- as she believes every dollar saved today is a dollar that they will not need to borrow in the years to come.
“The notion of affordability is high on people's minds right now," Farmer said. “The plan offers a savings on tuition costs for those who want this opportunity for their future students.”