Editor’s note: This is one of the 20 tough financial questions posed in the “Do This or That?” cover story in the September 2011 issue of Kiplinger’s Personal Finance. Use the drop-down menu above to consider other financial conundrums and the right answers for you; share your own experiences and insights in the Discuss field at the bottom of this page.
Use a 529 savings plan if you have plenty of time in which to save, your student has no idea where he or she will attend college, you expect the plan’s performance to outpace tuition inflation, and you can tolerate risk in the early years to get higher returns. You may also get a state tax deduction for contributions.
Prepay tuition with a state plan if your student plans to stay in state and you like knowing that tuition is covered. Prepaid plans let you lock in tuition at your state’s schools years ahead of time. If your student ends up going to a private school or a school out of state, you can transfer the money or get a refund, but it may not equal the price of the other school.
10 Most Tax-Friendly States for Middle-Class Families
state tax If a move from one state to another is in your future, you could save big bucks by relocating to one of these states where the tax bite is light for middle-class families.
By David Muhlbaum • Published
Where Is the Economy Heading? Velocity of Money Provides Clues
Financial adviser looks at the rate at which money is being spent in the economy for an idea of whether we’ll see a recession in 2023.
By T. Eric Reich, CIMA®, CFP®, CLU®, ChFC® • Published
The Best Cash Back Credit Cards
Smart Buying Looking for the credit card that pays the most cash back? These lenders pay the most, with the minimum hassle.
By Lisa Gerstner • Published
Student Loan Forgiveness Blocked For Now Due to Court Rulings
Biden's student loan debt forgiveness program is on hold until the U.S. Supreme Court can weigh in.
By Kelley R. Taylor • Published
I-Bond Rate Is 6.89% for Next Six Months
Investing for Income If you missed out on the opportunity to buy I-bonds at their recent high, don’t despair. The new rate is still good, and even has a little sweetener built in.
By David Muhlbaum • Last updated
What Are I-Bonds?
savings bonds Inflation has made Series I savings bonds enormously popular with risk-averse investors. So how do they work?
By Lisa Gerstner • Last updated
529 Plan Contribution Deadlines Coming Soon in Many States
Year-end state deadlines for making 529 college savings plan contributions that can maximize state tax breaks, are coming soon.
By Kelley R. Taylor • Last updated
Your Guide to Open Enrollment 2023
Employee Benefits Health care costs continue to climb, but subsidies will make some plans more affordable.
By Rivan V. Stinson • Published
Watch Out for Flood-Damaged Cars from Hurricane Ian
Buying & Leasing a Car In the wake of Hurricane Ian, more flood-damaged cars may hit the market. Car prices may rise further because of increased demand as well.
By Bob Niedt • Last updated
What You Need to Know About Life Insurance Settlements
life insurance If your life insurance payments don’t seem worth it anymore, consider these options for keeping the value.
By David Rodeck • Published