Benefits of a 529 plan
A 529 plan gives consumers a tax-advantaged way to pay for education, and that’s a boon for parents and other family members who want to save for a child’s schooling. A 529 plan offers several other benefits, including the ability to invest with potentially high-return assetss such as stock funds, instead of being limited to low-return bank accounts.
Among other things, “these plans can be used as estate planning tools by grandparents to help their grandchildren save for college, or by a family to create a relatively flexible education fund that can span multiple children with proper planning,” says Bill Van Sant, CFP, senior vice president at Girard, a wealth management firm in the Philadelphia area.
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