Among families that are actively saving for their children's college education, did you know that only 27% are using 529 plans and other similar accounts that can provide considerable tax advantages?
According to a 2015 study from Sallie Mae, nearly half of families saving for college are using general savings accounts, missing out on tax benefits and potentially losing out on potential growth from investing in stocks, bonds and other assets through 529 plans.
The good news is that there are ways to quickly build a sizable 529 fund. Plancorp’s Peter Lazaroff helps explain the top 4 way to grow a college savings account quickly and the benefit in doing so:
1. Shop Around
2. Enlist Help
3. Start Big
4. Make It Automatic
This material has been prepared for informational purposes only and should not be used as investment, tax, legal or accounting advice. All investing involves risk. Past performance is no guarantee of future results. Diversification does not ensure a profit or guarantee against a loss. You should consult your own tax, legal and accounting advisors.