If you have kids, then you will need to save for your childs college. Because college inflation is around 7 to 8 percent per year, it is recommended that you put your money into something that will exceed this amount. Their have been a few programs developed in order to help parents save for their childs college expenses. The programs include the ESA, 529 accounts, and the PACT program.
The ESA (Education Savings Account) is a mutual fund to save for your kids college. It averages around 12% per year, therefore keeping ahead of inflation of college. In my opinion, it is the best choice available, however, you should learn about the 529 program as their are a few good 529 programs available. The PACT program is nothing more than a pay now, receive later type of program, therefore you get no increase in the annual yield. You are much better off with a ESA account instead in my opinion.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment