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Miscellaneous |
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College
Education plans 529
State-run
college savings plans (529 plans) are a great tool for parents.
The money may be used at any school you choose and for all qualified higher
education expenses, including room and board.
Investment
minimums are low (typically $25 a month), and there is no restriction
on how much you may contribute every year unless the account is nearing
the lifetime cap.
Each state
determines its own lifetime contribution limit, ranging between $100,000
and $270,000. Tax benefits are limited to a certain amount each year.
Investors enjoy from tax benefits from the IRS and in some cases from
their state of residence.
Most 529
savings plans offer a menu of age-based portfolios, and some also offer
a small selection of stock and bond funds.
Money
Market
Non-qualified
low-risk saving accounts that designed to give the investor a “safe
place” to keep the money. The funds are always available to the
investor, typically the growth is over the inflation rate.
CD
(Certificate of Deposit)
CDs typically
issued by banks. Investors deposit the funds for a certain time (such
as 6 months), and earn pre-defined interest on it. The funds are not available
to the investors before the maturity date.
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