Ask Terry Questions College savings plans

College savings plans

By Terry Savage on February 04, 2023 | College Savings / Student Loans

My granddaughter was just born. I have $5000 saved to invest in a college savings plan, 529. Is Bright Start the best bet? College Illinois? Are these plans based on the stock market and actually could lose money or tank? They may not live in Illinois by the time college rolls around. Thanks and you are great on WGN.

Terry Says

Where they live doesn’t matter. Money in any state’s plan can be used for college in any state! Please read this recent article. And yes, since you live in Illinois, the plan is a good one– AND you get a tax deduction on your Illinois income taxes for up to $10,000 in contributions.
And they should be contributing as well.

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