Making plans for the nextgeneration often involve planning for their education. And with educationalcosts rising, many families are using 529 education savings plans to helpthwart the future expense of college tuition, boarding, books, and the like.
As a result, it is no surprisethat recent analysis by Morningstar Inc.found a sharp increase in contributions to Section 529 plans in 2012. Reuters reported on these findings in anarticle titled â€œMorningstar: 529 college savings plans up in2012 despite some lags.â€ The article notes a 529 plan is atax-advantaged account that encourages savings now toward exorbitant college costs later. That said, not all plans are alike and the study found somewere far better than others, and some were even of questionable worth.
The final analysis: although 529education savings plans as a whole underperformed against some mutual funds,2012 saw a 25% rise in 529 plan assets against a 13.4% gain in the S&Pindex.
For more information on this subject,contact IdahoEstate Planning and schedule aconsultation. Remember,good planning is no accident.