529 reasons to save for college with a 529 plan

http://www.savingforcollege.com/articles/529-reasons-to-save-for-college-with-a-529-plan-770

According to Sallie Mae’s How America Saves for College 2015, 90 percent of parents believe their children will go to college one day. But with tuition prices rising faster than inflation, how can they be sure they’ll be able to afford it? There are different options when it comes to saving, and at Savingforcollege.com we’ve always said the most effective way to reach your goal is by using a 529 plan. But not everyone agrees. In fact, according to our own Annual College Savings Survey, 45 percent of families are using other savings vehicles to save for college.

That’s why each year we celebrate 529 day in May by spreading awareness about the benefits of 529 plans. This year the states are offering a variety of sweepstakes and incentives to promote saving for college, and at Savingforcollege.com we’re hosting a free, live one-hour webinar on May 29th moderated by Forbes’s Ashlea Ebeling. You’ll have a chance to have your 529 plan questions answered by experts such as Savingforcollege.com Founder Joe Hurley, Marguerita Cheng, CFP and CEO of Blue Ocean Global Wealth and Caroline Tucker, Director, Product Management USAA Investments. What’s more, all webcast attendees will be entered to win a $250 529 college savings account from College Savings Bank.

REGISTER HERE

But that’s not all – this year we’re also compiling a list of 529 reasons why you should open a 529 plan to share with our readers. To make things more interesting, we’re enlisting the help of our friends and readers to complete the list. When you submit a reason, you’ll also be entered to win a $1,529 cash scholarship from Savingforcollege.com.

To get the list going, we asked some of our favorite industry experts for their reasons. Here’s what they had to say:

Tax benefits

It’s no surprise to us that experts love the tax benefits offered by a 529 college savings plan. Earnings in the account grow tax free, and you won’t incur taxes on withdrawals when the money is spent on college expenses. What’s more, 34 states offer residents a state tax credit or deduction for contributions to a 529 plan.

Reasons to open a 529 plan:

“An education tax benefit you don’t want to over look”.
“Pay for college and save taxes”
Gary E. Carpenter, CPA, CCA

“Saving for college is taxing enough – maximize tax savings with a 529 plan”
@SweeneyFidelity John Sweeney, EVP of Retirement & Investing Strategies, Fidelity

Debt prevention

40 million Americans are living with student debt, with an average balance of around $30,000. In fact, according to a recent Gallup poll, 73 percent of parents with children under the age of 18 claimed to be “very worried” or “moderately worried” about how they will pay future college bills. Our experts want to share how a 529 plan can help.

Reasons to open a 529 plan:

“So YOU don't wind up neck-deep in parent PLUS loans and unable to retire.”
@LizWeston Liz Weston, Personal Finance Columnist

“An investment in knowledge pays the best interest: The 529 plan.”
@BlueOceanGW Marguerita Cheng, CFP, CEO Blue Ocean Global Wealth

“Fidelity College Savings Indicator shows on avg parents plan to cover 64% of children’s college costs, yet on track to save just 28%”
@Fidelity Fidelity Investments

“The best protection against the rising cost of college is to save regularly in a 529 plan.”
@leafsavings Christian Duffus, Co-Founder, LEAF College Savings

“For some people, prepaid college tuition plans are a can't-lose investment.”
@thesimpledollar Jon Gorey, Managing Editor, The Simple Dollar

“Saving for college through a 529 can make you feel like a genius because you'll be in a much better position to afford college.”
@CollegeBlogs Lynne O’Shaughnessy, Author, The College Solution

College savings make a great gift

529 plans are investment accounts, which means interest on the earnings are compounded and the earlier you start to save, the more time your funds have to grow. Most young families don’t come across windfalls of money too often, so one of the easiest ways to boost your savings is to solicit the help of friends and family. Many 529 plans allow owners to invite loved ones to contribute electronically by using facebook and email.

Reasons to open a 529 plan:

“Too many video games & toys: Encourage family & friends to give to your child's 529 plan for birthdays and holidays.”
@BlueOceanGW Marguerita Cheng, CFP, CEO Blue Ocean Global Wealth

"I save in a 529 plan because I've found it a great way to put 'money' gifts from aunts, uncles, and grandparents to good use - my son's future."
@collegeinvestin Robert Farrington, Founder, The College Investor

“Make college savings a team effort: friends & family can easily contribute to a child's 529 plan with online gifting”
“Share your college savings goals with family and friends. 90% of grandparents say they’d help if asked.”
@SweeneyFidelity John Sweeney, EVP of Retirement & Investing Strategies, Fidelity

An easy way to encourage children to pursue a college education

In 2013, a study conducted by the University of Kansas revealed that a college savings account with as little as $1 in it would increase the likelihood that a child would attend college from 45 percent to 71 percent. With automatic deposit options that allow you to “set it and forget it”, a 529 plan is an easy way to help make college a reality for a child.

Reasons to open a 529 plan:

“Intelligence + Character = The goal of a true education. A 529 plan can make it happen.”
@BlueOceanGW Marguerita Cheng, CFP, CEO Blue Ocean Global Wealth

"Saving in a 529 plan helps foster college awareness & aspiration in your child!"
@MEFAtweets Martha Savery, Director, Public Affairs and Communications, Massachusetts Educational Financing Authority

“To help relieve stress, it helps to set aside money monthly dedicated to grow a college fund and a 529 Plan allows for tax free growth that can be used on qualified expenses.”
a href="https://twitter.com/celesthorton">@CelestHorton Celest Horton, Founder and Host, How to Pay for College HQ podcast

“Even if you’re not sure what path your child will take, a 529 can be used for almost any post-high school education, it’s not just for traditional 4 year universities.”
@CollegeAveLoans Joe DePaulo, CEO and Co-Founder of College Ave Student Loans

“A higher education is one of the top returning asset classes over the past 100 years; open a 529 plan and give your child the chance to enjoy an outstanding return on their life.”
@leafsavings Christian Duffus, Co-Founder, LEAF College Savings

“You can invest like a financial pro even when you aren't by relying on 529 age-based portfolios.”
@CollegeBlogs Lynne O’Shaughnessy, Author, The College Solution