Recently someone said to me that the only reason she invested in a 529 savings plan for her child was that everyone she knew had done the same thing. Often people have at best a vague understanding of how these plans work, why they are a desirable way to save for college, or how to select a plan that suits their needs.
I’ve found that most people don’t understand that there are actually two types of 529 plan. There are “prepaid” 529 plans and 529 “savings” plans; they differ significantly in some respects. In both types, state tax deductions may …Read More