Higher Education Savings Plans Essay -- essays research papers

Higher Education Savings PlansAbstractThis paper is about the Section 529 higher education savings plans that allow family members to get word certain measure breaks while raimenting for a childs higher education. The data used in this study is the historical place of return on a computed tomography 529 plan versus the benchmark, the S&P 500. The time period covered was the inception of this plan starting in 2002 up to the start of research on this study, the end of September, 2004. The tests show that although this position 529 plan offers tax take ins that could help in investing for higher education, that this circumstance plan failed to outperform the market during the period observed. Therefore it is my conclusion that in that location ar better investment options on the market to invest in a childs higher education than this Connecticut 529 savings plan. This study may lead to further observation of other Connecticut 529 plans as well as 529 plans managed nationwide t o figure out if 529 plans ar as effective as advertise.529 college plans have become greatly debated in recent years as a tool for investing for college. The plan, which takes its fall upon for the provision of the tax code that sanctioned them, is a college savings depict which allows parents or grandparents to give gifts to children that will be later used to encounter a college education. Although some 529 plans have been around since 1988, the Economic Growth and assess Relief Reconciliation Act of 2001 made sweeping changes to Section 529, most of which became effective in 2002. These changes offer substantial tax benefits to families seeking to finance the cost of college expenses. 529 plans offer families, regardless of income, the opportunity to generate tax-free earnings on funds specially set aside for higher education. These plans, which are run by individual states, tooshie be of great benefit to children by allowing their family members to give money to them in a dvance to save for college. It can also be detrimental to not only the people who invest but the children who are receiving these gifts. I became aware of these 529 plans by reading A Random Walk Down Wall Street by Burton Malkiel. My pauperism was to see if these 529 college saving plans are as effective as advertised and to look at the upsides and downsides of investing in them. Since there are tax deduct... ...881.69935.11840.31855.7-2.74%2-Dec-02941.55954.4869.42879.82-6.03%1-Nov-02885.76941.85872.02936.315.71%1-Oct-02816.3907.49768.58885.77