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529 College Funds

529 College Funds. Tinei Makaiau. Definition. - A 529 college fund is an education savings plan run by a state or educational institution designed to help families set aside funds for future college costs. There are two types of these college funds, a prepaid tuition or a college savings plan.

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529 College Funds

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  1. 529 College Funds TineiMakaiau

  2. Definition - A 529 college fund is an education savings plan run by a state or educational institution designed to help families set aside funds for future college costs. There are two types of these college funds, a prepaid tuition or a college savings plan.

  3. Limitations • A pre-paid tuition plan locks in tuition at eligible colleges, while a college savings has no lock. • A college savings plan has enrollment open all year, while a pre- paid plan enrollment are limited to a certain time of the year.

  4. 529 college fuND • The type of people that invest in this type of fund are conservative.

  5. Making money/Example • Money is made when you invest in the fund for future beneficiaries, so if you invest in the fund for your grandchild, he is able to use the money to pay for tuition for college when he comes of age.

  6. Eligible colleges • BYU Hawaii • Academy of Art • Chaminade University

  7. Risks • Even though these funds are popular methods, and offer many tax benefits, any downturn in the economy has just as much impact on these plans which renders them far more volatile than traditional savings accounts.

  8. Sources • http://www.life123.com/career-money/education-college/529-plans/the-pros-and-cons-of-a-529-college-savings-plan.shtml • http://www.savingforcollege.com/eligible_institutions/index.php?federal_school_code=&school=&state=CA&year=2012-2013&order_by=school&go=Submit&mode=search • http://www.savingforcollege.com/intro_to_529s/what-is-a-529-plan.php

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