{"id":2837,"date":"2020-07-24T07:37:42","date_gmt":"2020-07-24T11:37:42","guid":{"rendered":"https:\/\/rockonthemoney.com\/?post_type=podcast&p=2837"},"modified":"2020-07-24T07:37:43","modified_gmt":"2020-07-24T11:37:43","slug":"short-dave-ramsey-baby-step-5-part-2-2-college-savings-via-529-plans","status":"publish","type":"podcast","link":"https:\/\/netcast.one\/rotm2\/podcast\/short-dave-ramsey-baby-step-5-part-2-2-college-savings-via-529-plans\/","title":{"rendered":"SHORT – Dave Ramsey Baby Step 5 Part 2\/2 – College Savings via 529 Plans"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

**This post contains affiliate links, and we may be compensated if you make a purchase after clicking on the affiliate and\/or partner links.<\/p>\n\n\n\n

529s and Prepaid Tuition Plans<\/strong><\/p>\n\n\n\n

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. 529 plans, legally known as \u201cqualified tuition plans,\u201d are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code. <\/p>\n\n\n\n

There are two types of 529 plans: prepaid tuition fees and education savings plan. All fifty states and the District of Columbia sponsor at least one type of 529 plan. In addition, a group of private colleges and universities sponsor a prepaid tuition plan. <\/p>\n\n\n\n

Prepaid Tuition Plans<\/em>. Prepaid tuition plans let a saver or account holder purchase units or credits at participating colleges and universities (usually public and in-state) for future tuition and mandatory fees at current prices for the beneficiary. Prepaid tuition plans usually cannot be used to pay for future room and board at colleges and universities and do not allow you to prepay for tuition for elementary and secondary schools.<\/p>\n\n\n\n

Most prepaid tuition plans are sponsored by state governments and have residency requirements for the saver and\/or beneficiary. Prepaid plans are not guaranteed by the federal government. Some state governments guarantee the money paid into the prepaid tuition plans that they sponsor, but some do not. If your prepaid tuition payments aren\u2019t guaranteed, you may lose some or all of your money in the plan if the plan\u2019s sponsor has a financial shortfall. In addition, if a beneficiary doesn\u2019t attend a participating college or university, the prepaid tuition plan may pay less than if the beneficiary attended a participating college or university. It may only pay a small return on the original investment.<\/p>\n\n\n\n

Education Savings Plans<\/em>. Education savings plans let a saver open an investment account to save for the beneficiary\u2019s future qualified higher education expenses \u2013 tuition, mandatory fees and<\/em> room and board. Withdrawals from education savings plan accounts can generally be used at any college or university, including sometimes at non-U.S. colleges and universities. Education savings plans can also be used to pay up to $10,000 per year per beneficiary for tuition at any public, private or religious elementary or secondary school.  <\/p>\n\n\n\n

A saver may typically choose among a range of investment portfolio options, which often include various mutual and ETF portfolios and a principal-protected bank product. These portfolios also may include static fund portfolios and age-based portfolios (sometimes called target date portfolios). Typically age-based portfolios automatically shift toward more conservative investments as the beneficiary gets closer to college age. If you are using a 529 account to pay for elementary or secondary school tuition, you may have a shorter time horizon for your money to grow. You also may not feel comfortable taking on riskier or more volatile investments if you plan on withdrawing the money soon. Because of these things, you may consider different investment options depending on when you plan to use the money that is invested.<\/p>\n\n\n\n

All education savings plans are sponsored by state governments, but only a few have residency requirements for the saver and\/or beneficiary. State governments do not guarantee investments in education savings plans. Education savings plan investments in mutual funds and ETFs are not federally guaranteed, but investments in some principal-protected bank products may be insured by the FDIC. As with most investments, investments in education savings plans may not make any money and could lose some or all of the money invested.<\/p>\n\n\n\n

WEBULL \u2013 Get 2 FREE stocks valued up to $1,000 here<\/strong>: https:\/\/act.webull.com\/kol-us\/share.html?hl=en&inviteCode=HvpbX35EsVmn<\/a><\/strong>\\

BESTOW \u2013 Fast, Free Quote on affordable online term life insurance. No exam, no waiting, no hassles: <\/strong>https:\/\/tinyurl.com\/y79pywmw<\/strong><\/a><\/p>\n\n\n\n

BUYING OR SELLING A HOME \u2013<\/strong> https:\/\/choicerealtyconnect.com\/<\/strong><\/a> when you are wanting to buy or sell a home, condo or any type of property. Get matched with up to 3 top agents in your area.

Website: <\/strong>https:\/\/netcast.one\/rotm2\/<\/strong><\/a>
Subscribe to the podcast \u2013 all links located here: <\/strong>https:\/\/linktr.ee\/rocklandusa<\/strong><\/a>
Call us with your questions : 989-888-ROCK (7625)<\/strong>
Facebook Group: <\/strong>https:\/\/www.facebook.com\/groups\/your401k\/<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

**This post contains affiliate links, and we may be compensated if you make a purchase after clicking on the affiliate and\/or partner links. 529s and Prepaid Tuition Plans A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. 529 plans, legally known as \u201cqualified tuition plans,\u201d are sponsored by […]<\/p>\n","protected":false},"author":1,"featured_media":2797,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"episode_type":"audio","audio_file":"https:\/\/netcast.one\/rotm2\/wp-content\/uploads\/2020\/07\/ROTMS-EP23.mp3","cover_image":"","cover_image_id":"","duration":"9:49","filesize":"9 MB","date_recorded":"24-07-2020","explicit":"","block":"","itunes_episode_number":"23","itunes_title":"SHORT - Dave Ramsey Baby Step 5 Part 2\/2 - College Savings via 529 Plans","itunes_season_number":"","itunes_episode_type":"bonus","filesize_raw":"9650449"},"tags":[],"series":[234,273],"coauthors":[284],"episode_featured_image":"https:\/\/netcast.one\/rotm2\/wp-content\/uploads\/2020\/07\/ROTM-TITLE-SHORT-600.jpg","episode_player_image":"https:\/\/netcast.one\/rotm2\/wp-content\/uploads\/2020\/04\/album-rockonthemoney1410-10.jpg","download_link":"https:\/\/dts.podtrac.com\/redirect.mp3\/netcast.one\/rotm2\/podcast-download\/2837\/short-dave-ramsey-baby-step-5-part-2-2-college-savings-via-529-plans.mp3","player_link":"https:\/\/dts.podtrac.com\/redirect.mp3\/netcast.one\/rotm2\/podcast-player\/2837\/short-dave-ramsey-baby-step-5-part-2-2-college-savings-via-529-plans.mp3","audio_player":"\nhttps:\/\/dts.podtrac.com\/redirect.mp3\/netcast.one\/rotm2\/podcast-player\/2837\/short-dave-ramsey-baby-step-5-part-2-2-college-savings-via-529-plans.mp3<\/a><\/audio>","episode_data":{"playerMode":"dark","subscribeUrls":[],"rssFeedUrl":"https:\/\/netcast.one\/rotm2\/feed\/podcast\/rockonthemoney","embedCode":"

SHORT – Dave Ramsey Baby Step 5 Part 2\/2 – College Savings via 529 Plans<\/a><\/blockquote>