Civil services chronicle magazine pdf

Civil services chronicle magazine pdf

Civil services chronicle magazine pdf published this article page no 9 With higher education tuition increasing at double digit year over year percentages an effective saving plan for your kids education is becoming much more important than it has been before. Most families will discover that their future higher education costs will be much more than they have saved for their kids education. This leaves many kids to be faced with obtaining financial aid to pay for a portion of their college education. The goal of this article is to explore the pros and cons of 4 common investment options when saving for college. This article will also explore why some of these options are better than other when considering a portion of your kids education may be funded by financial aid. 529 College Savings Plan: - A 529 college savings plan is a fairly new investment option for college saving. It allows just about anyone to save for college. There is a long list of benefits of a 529 college savings plan but perhaps the most important is that your earnings grow tax free if you use it for qualified education expenses. Additionally the maximum amount you can contribute to a 529 plan can go as high as several hundred thousand dollars depending on your State. In the event you do not use the funds for college you can still withdrawal your earnings but you will have to pay taxes and a 10% penalty. The penalty will be waived if your child receives a scholarship or your child becomes disable or dies. 529 plans can typically be purchased through a broker or mutual fund company but a disadvantage is that investment choices can sometimes be limited haryana civil services buy.

Civil services chronicle magazine pdf