In the latest in their series of investor podcasts, FINRA covers college tuition savings plans and vehicles, from state sponsored prepaid tuition plans and 529 qualified tuition plans, to other tax-advantaged tuition savings methods like Coverdell accounts (i.e., educational savings plans, or educational IRAs), custodial accounts, and savings bonds.
Each of the methods of tuition savings has advantages and disadvantages. Knowing the pluses and minuses, as well as the restrictions and flexibility of each can help investors structure savings tuition savings plans that meet their needs and take into account the length of time available for saving.
FINRA's two-part series on college savings is available at the following links:
- Smart Saving for College—Part 1: 529 Plans Listen Now/Download | 9 min. 15 sec.
- Smart Saving for College—Part 2: Other Tax-Advantaged Options Listen Now/Download | 10 min. 5 sec.
The full library of FINRA Investor Podcasts is available at: http://www.finra.org/Investors/Subscriptions/Podcasts/index.htm