While your child is attending a charter school in Phoenix, AZ, one of the top things on your mind is probably the future of the child’s education and career. For many, the road to success will include attending college. Of course, this requires significant financial investment. To ensure you have the necessary funds to send your child to college, it’s essential to start saving early.
To help with this process, parents can take advantage of the 529 College Savings Plan. Here’s the scoop on what this plan has to offer and how you can tap into this resource.
What is a 529 College Savings Plan?
This is a state-sponsored program that allows parents, grandparents and students the opportunity to save for future education plans. It provides a tax-deferred solution and tax deductions for those saving for college.
What are the benefits of a 529 plan?
A 529 plan offers tax-free withdrawals, tax-deferred earnings, up to $4,000 in tax deductions, no income restrictions, a wide range of investment options, professional money management and funds that are eligible to spend at most accredited colleges.
What plans are available?
In the state of Arizona, parents have the option of two direct-sold 529 college savings plans as well as an advisor-sold plan. The direct plans are managed by College Savings Bank and Fidelity Investments. The advisor-sold plan is managed by Ivy Investment Management Company. Parents should examine each plan to see which best suits their investment needs.
What is the difference between the 529 plans?
Some options are FDIC-insured. Some involve actively managed funds, while others offer index funds. Parents should consult with a financial provider to determine which makes the most sense for their child’s future goals, based on current age, budget and education and career plans.
How do I get started with a 529 plan to save for college?
Whether your child has just started at a charter school in Phoenix, AZ or will be graduating high school next year, it’s important to have a plan in place for college funds. Parents should review the options for 529 plans to familiarize themselves with the possibilities. Then, once the appropriate plan is selected, parents can open an account for as little as $15 a month.
Why should I invest in a 529 plan?
Contributing regularly to a 529 plan for your child’s education is a smart move. Even $15 a month can grow into significant savings to help pay for your child’s education years down the road. Start early and watch the money grow into a healthy investment into your child’s future.
For more information on 529 plans and the future of your child’s education, contact the academic professionals at Pointe Schools. As a premier charter school system in Phoenix, AZ, we are your go-to source for educational resources. We’re here to support parents and develop students who make positive impacts in their communities. From the start of their academic career to their first year of college, we want to help your child grow and hone their passions and strengths. Contact us today with any questions. We’re here to help.