The mutual fund has a great interest rate, but the 529 has a tax savings - so which is better ?
2007-10-03 11:33:12 · 3 answers · asked by Shelly L 1 in Business & Finance ➔ Personal Finance
depends on needs
529 plan is only for college and higher education otherwise there is taxes and penalties
if you want more options for this money for your kid go with the mutual fund
also nothing says you can't have both!!!
just be warned that the 529 plan will probably have an annual fee though (most are like $25) but there are ways around it
2007-10-03 11:47:16 · answer #1 · answered by lidlwig 2 · 1⤊ 0⤋
The mutual fund does not have an interest rate. It has a rate of return. The 529 is invested in something. It could very well be the SAME mutual fund. You need REAL information to ask an answerable question.
2007-10-03 12:18:52 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
I was not happy with my 401K and I trust Mutual Funds so I recommend the following site.
2007-10-03 11:49:14 · answer #3 · answered by American Dissenter 5 · 0⤊ 2⤋