Higher education is expensive, and the future will compound this fact. Not making the investment however, comes at one’s peril; the workplace is so competitive today that even entry level positions are difficult to secure without a diploma. Fortunately, the Federal Government’s authorized savings programs, called 529 Plans, simplify the process of creating a college fund and making the funds work efficiently for investors.

While 529 Plans are powerful, tax-free saving vehicles for those who want to save for education expenses for their children or grandchildren, they deserve scrutiny.

Scholarships.com cautions that 529 Plans can vary state-to-state, including the fees and tax penalties associated with them.

FOX Business realizes that there is concern over the idea of predicting the future for your beneficiary. What if they choose not to go to a higher education institution? “…you can transfer a 529 savings plan to a sibling or another beneficiary—even yourself!—to be used tax-free for qualified education expenses,” they say.

U.S. News – MONEY details eight common misconceptions about 529 Plans. It is certainly important for you to be able to separate fact from fiction.

WT Wealth Management endorses the inclusion of 529 Plans into your financial planning strategy because they are dedicated, isolated savings with tax-free growth that keep people from “raiding” the accounts for various “other expenses” that come up in life.

A bit overwhelming? WT Wealth Management is happy to sit down with you to look at all of these options based on your individual financial situation before choosing the best plan. We offer a free consultation to do just that. Reach out and contact us.