Higher Education Savings Plans Essay -- essays research papers

Higher Education Savings PlansAbstractThis base is about the Section 529 higher education nest egg plans that allow family members to know certain valuate breaks while dressing for a childs higher education. The data used in this study is the historical run of return on a computerized axial 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 special 529 plan offers tax realises that could help in investing for higher education, that this particular plan failed to outperform the market during the period observed. Therefore it is my conclusion that in that location argon 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 nationwid e to figure out if 529 plans atomic number 18 as effective as publicize.529 college plans have become greatly debated in recent years as a tool for investing for college. The plan, which takes its puddle for the provision of the tax code that sanctioned them, is a college savings bankers bill which allows parents or grandparents to give gifts to children that will be later used to reserve a college education. Although some 529 plans have been around since 1988, the Economic Growth and revenue Relief Reconciliation Act of 2001 made sweeping changes to Section 529, more or less of which became effective in 2002. These changes offer substantial tax benefits to families seeking to pay the cost of college expenses. 529 plans offer families, regardless of income, the opportunity to generate tax-free loot on funds specially set aside for higher education. These plans, which are run by individual states, nominate be of great benefit to children by allowing their family members to give money to them in advance 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 motive 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