Four Things You May Not Know About 529 Plans

As much discussion as there is about trying to control the cost of college education, just talk to any parent who is paying to deal with college that no gravity is defying this rising cost.  Amidst all of the projections you read on the college websites, when you add in the cost of your family travel, stops at the bookstore, and home care packages, the overall cost to send your child away for a four-year degree could cost you a long delay in your retirement. In the mid 1990’s Section 529 of the Internal Revenue Code was created.  In 1997 (just twenty years ago) Section 529 was amended by the Taxpayer Relief Act, which provided a handful of higher education tax incentives including the deductibility of student loan interest.  We know how much children are struggling with student loans, and in 2001 the earnings on 529 plans became completely tax free if they were used for college.  As people learn ...

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Hey Middle Class – It’s $369,000 A Kid!

So what does it take to raise a child?  They used to say it took a village to raise a child.   Today it can be more challenging than ever with the influence of television, internet, and music coming at our children from every angle possible.   I know this as my kids are twelve, ten, and eight years old respectively.   But, according to the Department Of Agriculture (www.usda.org), it will cost a middle class family $369,000 to raise a child from birth to seventeen years old which represents slightly over $20,000 per year to your annual budget. In the report, a middle class family is considered to be incomes between $56,670 and $98,120.   Child rearing was the largest expense in raising a newborn, followed by child care/education, and then food.   Whether you are a single parent family or a married couple, expense for the child increasing significantly as the age of the child increases.  The most amazing part of this report ...

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