If you live in Texas and want your child to attend college you will want to consider a 529 college savings plan. These plans offer many benefits that can help you pay for your children’s college tuition. There also plans that can help you pay for your child’s living expenses and books that they will have to pay for when they attend college. These affordable programs help you lock in tuition costs which will surely increase in the near future.
A Texas 529 college savings plan can be one of the most important contributions that you make in your child’s future. The advantages of having your child’s college education fully paid for by the time they graduate college can help them get off to a great start without the financial debt that many students cannot afford.
How to Enroll in the Lonestar 529 Savings Plan
To enroll in the lone Star 529 savings plan you will have to fill out an application. There are no enrollment or application fees that are applied. There is no maintenance fees charged to the account like many other states charge. There are some minimal expenses that the fund will incur which normally add up to about .5% of the total money invested in the plan.
Age Based Investing Plans
The Texas 529 savings plan offers a few different age-based portfolio options. The six portfolio options offer different savings plans based on the age of the child. Depending on what age you start saving for your student’s future college tuition will greatly depend on which plan you decide to pick. The longer you delay the process the more you will have to pay monthly to catch up.
Locking in Tomorrow’s College Tuition Costs Today
One of the major benefits of using the lone Star 529 savings plan is that you can lock in college tuition costs at today’s prices. Anyone can open up a savings plan in their own bank branch. The major difference is they will have to pay much more for college when it is time for your child to attend. Locking in the cost of tuition can be just as valuable as the interest that you make on your savings plan. Analysts predict that college tuition costs will more than triple in the next 15 years.
Tax Benefits of the Texas 529 Savings Plan
Another great benefit of the new Texas 529 college savings plans are the tax breaks that you will receive. The savings plans are tax-free which can save you hundreds of dollars on your next tax return. You get tax-free growth on your investment and tax-free withdrawals on the earnings that you receive.
The Texas 529 guaranteed tuition college savings plan was developed to help parents aid and fund their children’s future education. This will help your child attend any Texas public college or university of their liking. These funds are backed by the state of Texas. The state will honor these guaranteed tuition plans no matter what the cost.