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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.
529 Plans, how effective are they?
The Jordan Insurance Group, MD, College FundWhen it comes to saving for college, you need to start thinking about the practice as what it really is: an investment in education. When choosing college savings plans, one of the most important factors that you can consider has to do with how effective each one is for your goals. When it comes to 529 plans, this involves taking a closer look at the advantages and disadvantages that they have to offer. One of the major advantages of a 529 plan has to do with the fact that all income levels are eligible to contribute. This means that there isn't a set income limit, which means that you can make as much or as little as you want and still contribute. Another major advantage of 529 plans has to do with the fact that they have high contribution limits, which means that there is a very real possibility that you can use a single plan to pay for a good majority of your college investment. Another major advantage is the fact that college savings plans like the 529 plan are open to residents of any state, which gives you the widest possible amount of options with regards to the school that you or your child eventually chooses to attend. When looking at these types of plans, however, it is also important to consider the disadvantages that they offer when compared to other types of plans to help decide how effective one really is for your situation. One of the major disadvantages of a 529 plan has to do with the fact that they typically charge fees and expenses to cover things like the administration of your account and the expense of running it in general. This means that not every dollar you contribute to the plan will eventually go to college education. College savings plans of this type also are not guaranteed to design a return on an investment and are in turn subject to various degrees of risk - if the stock market under performs, you could lose some or all of the money you've already put it. Content provided by Transformer Marketing.
William Jordan
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