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Monday, April 6, 2009

Louisiana Section 529 Plan is #1

A real life example of how you can send your child to an Ivy League college, even if you are a single, middle class Mom.

529 plans are a huge help.

I deposited $10,000 of my house sale proceeds into a 529 plan gauranteed interest only account for my daughter last year.

$900 - The Louisiana plan matched my $10,000 deposit with a 9% addition to my account in part based on my AGI (under $50,000).
$634 - in contribution interest.
$126 - state tax credit

That's a 16.6% return on the $10,000 investment, 15% if you don't live in the state. And you don't have to live here to take advantage of the Louisiana 529 plan.

The money in the 529 plan is going to pay for her apartment rent, food and tuition not covered by scholarships. The tuition not covered by scholarships each year is about $5,000.

Whew. She's a Junior!

Check out Louisiana's 529 plan here.

I don't work at the Louisiana Office of Student Financial Assistance and make no money for promoting it.

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