With 4 years left until starting college is it a good idea to buy prepaid tuition or invest a 30K lumpsum?

Answer 1

Yes, definitely it is worth buying prepaid tuition plan if it goes up with inflation or your teen is looking at public universities in the state and because the rate is locked in for the number of credits bought by you thus saving a lot of money in the process. College tuition goes beyond the normal inflation rate in a number of states.

Answer 2

The 30K is definiately a great idea just make sure it's not put in to risky of an investment. The down side to the prepaid tuition is what happens if you don't get into the school you want to, not to mention those are only useable with public instate universities. College inflation is double that of the normal economic inflation. So if you know you'll get in to the instate public university go ahead other wise, invest it in either a regular 529 plan or talk with your local investor about the proper investment for you.

Answer 3

Well, it depends some on where you live. In Wisconsin, tuition to the UW system just rose about 7% this year and as risen pretty by about that rate for the last several years.

So do a quick check on the rate of increase for whatever school you're thinking about, then see whether you'd be better off buying the prepaid tuition or investing it somewhere for the next four years.

Answer 4

Depends on the situation you have.. most colleges will pay full if your grades are good and you can always apply for FASFA or take the ACT or SAT and get bright futures.. there are many options, but if you want to get It out of the way then prepaid tuition sounds okay.

Answer 5

Investing money into anything is never a bad idea! Savings will always be there whether you need it or not.

Whether it be for college, car, house, or that new game you want.

Investments are just that...

Answer 6

You might want to consider putting the money into a 529 account. It is similar to an IRA except that the money is used for education.