JPMorgan Asset Management Head of Education Savings Tricia Scarlata joins Wealth! to discuss 529 plans and how to best plan for your child's college education.
When it comes to depositing savings in a 529 plan, Scarlata says, "It's never too early, never too late, never too little." She adds that merit scholarships are also a significant source of aid for families looking to make college more affordable for their children.
As the cost of college continues to reach record highs, Scarlata stresses the importance of having savings in a 529 plan as opposed to a cash account: "We're seeing about 67% of families are not leveraging a 529 account, so they're missing out on those tax benefits and those potential investment earnings. And cash is just not going to get you there when it's going to 5 to 6% increase every year," she explains.
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