Which college savings plan is the best?

Question

My wife and I want to start a college savings plan for our 1 1/2 year old daughters. I understand each state has its own 529 plan. In Illinois I am looking at the BrightStart plan. We would have approximately $100 a month automatically taken from the checking account and sent downstate to the BrightStart account where it is invested in various funds for us. My question- it was suggested to me by someone to check into Utah's plan too, it is rated as one of the best in the country. Anybody know the difference? Any suggestions from parents putting money away for their kids' college future? Any advice would be helpful.

Answer 1

I would go with your state's plan because if Utah's plan is attached to their schools the money saved up would not go far enough due to your daughter being an out of state student unless you plan on living in Utah during her high school years to establish her residency. However, before considering another state's 529 plan, I recommend reading the fine print of the program. In addition, I recommend joining UPromise because a portion of purchases of certain products will be placed into an account which could be converted into a 529 college savings plan.

Answer 2

element a million - Paying down the loan does not "liberate" money. in actuality it freezes such money right into a oftentimes illiquid asset referred to as domicile. element 2 - Paying down the loan reduces the quantity of pastime deduction you are able to declare on your Fed Tax. element 3 - Claiming loan pastime on your Fed Tax is merely efficient to the quantity it helps you exceed the quantity you may desire to declare utilising the the customary deduction. 0 loan pastime and finished customary deduction is the suitable place. element 4 - reducing the loan stability reduces your leverage interior the domicile. If the home is appreciating each year extra suitable than the fee of borrowing the money (loan pastime) you would be gaining each and every 12 months. Conversely, if the home is continually going on in fee(or a minimum of unlikely up) then you definately might desire to be properly stated to cut back your leverage( pay the debt). element 4 - Inflation can and does make your determination extra handy. If the money you "shop" by using the two paying down the loan or investment a saving account for college, appreciates by using below the fee of boost in college instructions, food, housing, and so on. then you definately will on no account gain your purpose. pay attention it is the main harsh tax of all. i might desire to pass on, however the element is this. placed your money the place you get the suitable return (interior tolerable negative aspects) and don't worry the tax too lots. a house is maximum households best asset and oftentimes the only which will pay off the suitable. inspite of each and everything the place else are you able to get loose lease (and oftentimes get extra suitable than you paid once you sell.) As Yogi might desire to assert, ".... and that's as good as money" regards, Texian