Why 529 Prepaid Tuition is Better Than 529 Savings During Economic Crisis

Here’s the worst-kept secret in America:

The stock market is making it increasingly difficult for families to prepare for the future college costs of their children.

According to the Wall Street Journal, parents coast to coast are scrambling to move their college tuition investments into more conservative-based funds. In a this volatile market such a move makes sense, however, it is not easily accomplished. A little-known IRS rule limits 529 Savings Plans to only one investment change per calendar year. (Find out more about prepaid tuition vs 529 savings plans.)

Although the rule was intended to prevent investors from making knee-jerk reactions to varying market conditions, it is unfortunately having the adverse effect of painting some investors into a corner during this down-market period.

The simple solution?

Roll over your 529 Savings Plan into a 529 Prepaid Plan such as College Illinois! Once you have purchased your desired amount of semesters, you’ll never again have to worry about the stock market affecting your child’s ability to go to college, no matter how much the market worsens.

College Illinois! is truly the smart, secure way to pay for college tuition.