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Prepaid Tuition PlansPosted on April 29, 2010. 529 Savings Plan 529 Plan vs. Prepaid Tuition? I decided to start a 529 plan for my daughter for 6 months. Now I need to decide to go with the savings plan template or model prepaid. I heard some of the best advisors to speak against the prepaid model, but I can not help but think of the future security (18 years from now really) a college at today's prices . College tuition rates are increasing at very high rates, so I do not think it would be a horrible decision. On the other hand, you can expect a savings plan to be able to grow at about 8%. So what anyone advise on what would be the best option. I am looking for advantages and disadvantages of each and your preferences. I've already been through the review of whether to start or not. Now I'm just making that a starting point. Go with the savings plan. Its a better alternative with a higher ratio upside down /. You have 17 years' time, time is your best friend with this investment, take a risk during the first year, then 5-10 or so reduce investment risk. Switching to a more balanced approach the next 5, final 2 years pass in the markets for cash. I'm not sure, but the last 2 years, it may be in the college preparatory class guy, I think you can pay those expenses from the fund. My advice is given with the assumption of an average purchase on the account. I put my savings plan at only $ 6K over time, but the above plan has almost 13K on his account in less than 4 years. something to think about. I do prefer and prepaid tuition for my 2 children! CommentsThere are no comments.Leave a Comment | Newest My Friends |