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College-Savings Plans Don’t Need to Blow Up: Jane Bryant Quinn

Source: bloomberg.com Posted By: Christy H...3416 days ago

If you are saving for college in a 529 plan, you probably took a bigger hit than you expected during the 2008 market crash.

What should you do now? Keep the plan or dump it?

My opinion: Stay in the 529 world but in a smarter way. These plans, run by the states, can be a great, tax-saving way to put aside money for college. You invest with after-tax dollars but the earnings are tax-free if they are used to pay for higher education.

Thirty-four states and the District of Columbia encourage....

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