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With over 76 years of experience, The Jordan Insurance Group is an industry leader in Life Insurance strategies and Employee Benefits. We strive for excellence through our due diligence in selecting products to satisfy our clients’ needs with proven benefit designs and tax strategies. Our Team utilizes a diversified multi-level approach in preserving, protecting and growing wealth for our business and individual clients.

College Savings plans

William Jordan William Jordan , 6/2/2014
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The Jordan Insurance Group, MD, College savingsSaving for college can be a daunting task, especially if you're at the beginning of the process. It is important for both parents and students everywhere to understand that you're never to young to start saving for college. The costs of tuition across the country are rising to record levels, which is why college investment in college savings plans is so important. Another important factor to remember is that an investment in education is an investment in your life in general. The two main types of college savings plans that are available for you to choose from depending on your needs include prepaid tuition plans and investment accounts that are "tax advantaged." Prepaid tuition plans allow you to essentially pay in advance for a school that you or your loved one plans on attending in the future. One of the main advantages of a prepaid tuition plan is that you are paying the rates of today for the university in question, instead of the rates that the university will be charging when it actually comes time to attend. Two of the main phenomenon that tuition plans of this type combat against are fluctuations in the stock market and tuition inflation. Tuition inflation occurs naturally over time as the cost of running a university increases in general. Stock market fluctuations can also cause the price of attending a university to increase. One of the major downsides of a prepaid tuition plan is that they only cover the cost to attend the university in question - they will not cover the cost to live either on or off campus while the student attends. Another type of college saving plan that you're definitely going to want to learn more about is called a 529 savings plan. It's a flexible program designed to help you save as much money as possible for increased tuition costs in the future. One of the most important incentives that these types of plans offer includes tax-free distributions, so long as those distributions are used for qualifying higher education expenses at the university that you choose to go to. Content provided by Transformer Marketing.