With school resuming soon, higher education enters many parents’ minds. The main issue besides choosing the right school is how to pay for that school. Many people are aware of 529 college plans, and every state offers one, but which is the best one for your child? Let Mentor Capital help you navigate through the many plans.
In addition to finding the plan with the lowest expenses and fees, plus highest returns, there are state taxes to consider. Some states, like Illinois, offer tax deductions for those contributing to their plans, while others give deductions for those contributing to any plan.
Some states will grant a scholarship to a student who contributes to its plan and attends an approved school in that state. For example, New Jersey offers up to $1,500 toward the first semester of a freshman’s first year. The amount is based on how long the account has been open and the amount contributed to the account.
But the best move is to start saving in the first place, as soon as possible.
Mentor Capital includes higher-education planning when analyzing a client’s portfolio. If you are an existing client, a new client, a parent or grandparent, we can answer your questions.
We would also like to note changes going on with Illinois’ 529 plans. Bright Start and Bright Directions are merging and changing to a new custodian, Union Bank & Trust Company. The conversion process started last week, and correspondence will arrive shortly. The change will lead to lower fees and expenses for clients. That’s music to our ears.