Saving money for college - The 529 Plan

In short, the 529 savings plan allows you to set aside money for future college expenses. This money can grow and be withdrawn for educational expenses tax free! This is similar to a 401k or IRA and can greatly help offset educational costs when invested early. Friends and relatives can contribute to this plan as well! It does not matter what state you are from, so you can invest in plans out of state. Talk to your financial advisor for more information on setting up a 529 plan for your children. You can learn more about this plan at the U.S. SEC website here