The District of Columbia recently revamped its 529 College Savings Plan. The new plan offers lower cost investment options than the old plan’s offerings. DC also eliminated the high-cost advisor sold option! These changes are a welcome improvement. DC, however, missed an opportunity for its 529 plan to become the low-cost leader. And I don’t […]
A new DC 529 Plan will be coming in 2017. The new DC 529 Plan provider, Ascensus, will hopefully eliminate the high-cost elements in the existing plan. 529 plans are a great way to save for college. Nearly all states have 529 plans. A 529 plan allows your contributions to grow tax free. You don’t pay […]
I’ve been thinking about a newborns recently and the need for a new baby financial checklist. These ruminations couldn’t be more timely. According to the Centers for Disease Control and Prevention, July and August have more births than other months. Cold winter months must lend themselves to romance! If you’ve recently become a parent (or a […]
Maryland offers both a prepaid 529 plan as well as an investment fund plan that, when used together, can diversify your college savings. In the Maryland Prepaid College Trust, you purchase semesters of tuition at today’s prices. No matter how much the cost of tuition increases, you have paid the tuition for the number of […]
I was asked recently whether it wise to contribute more than the state tax deduction amount of $4,000 to the Virginia 529 College Savings Plan. Virginia maintains two distinct plans: The InVest Plan, which offers stock and bond mutual funds. The investment earnings are not taxed as long as you use them for qualified higher […]
A young couple came to me recently because they received a parental gift of $40,000 and wanted to know how to maximize their college savings. They are DC residents so they were naturally curious about the DC 529 College Savings Plan. If you don’t know already, 529 plans are a great way to save for […]
