Back in 2016, I attended a little seminar about NY’s 529 College Savings Program and I heard these words from a speaker that has since stuck with me… She said, “$1 Saved is way less expensive than a $1 borrowed from a loan because it’ll cost you that $1 plus interest to pay it back!” This was it. The truth. I watched my mother and sister struggle a bit with student loans before I had reached college, so I vowed to NEVER take out a Loan. The NY529 account that my mother had set up for me truly helped a lot and though my education has not been completed, I can relax with knowing I don’t owe anyone a dime. Let me get a little more in-depth as to why NY’s 529 College Savings Program allows me to give my child the most amazing experiences without worrying about her educational future.
My daughter is a spunky 5-year-old who always has plans for the future. Typically I’d be stressing about what financial burden my future may hold and that would probably put a stop to our crazy adventures. Thanks to my baby’s NY529 plan, I can have some money direct deposited into the account and then push it to the backburner of my brain until the time for college finally arrives. Thanks to this stress-free mentality, my daughter gets to enjoy her favorite places such as Benihanas, Liberty Science Center, and even the American Liberty Ballet.
I’ve been able to start taking her on Domestic and even international flights using my own separate savings and I feel great about it. She gets to see new places, experience new foods, and truly enjoy life. NY529 is the best thing I’ve ever come across and am excited to know that most, if not all of my daughter’s college financials will be settled in 13 years when she’s college-bound.
For those of you who are still a little confused, a 529 is a Direct College Savings Plan generally sponsored by whichever state you reside in. Many states offer the 529, but all have different rules. What stays the same is that it is meant to help you get your family ready for college. It can be used to pay tuition at a Two or Four-year University, accredited vocational school, or postgraduate program, as well as books, Computer, supplies or any other relevant expenses. Anyone can open up and/or contribute to a 529. That’s right… Parents, grandparents, relatives, friends…ANYONE.
The account owner (You) simply picks the investments, assigns the beneficiary, and determines how the money is used. As an added bonus, If you are a New York State Taxpayer with a NY 529 Direct College Savings Plan, then you will benefit from a state tax deduction come tax time. Opening a 529 will not only help with your financial planning, but it’ll also allow your children to fulfill their dreams without the stress of borrowing money to further their education.
Here are some Useful links to get you started:
- NY 529 Direct site: www.NYSaves.org
- NY 529 Direct FAQs: FAQs – https://www.nysaves.org/home/
faqs-getting-started.html - NY 529 Direct Twitter: www.twitter.com/NY529Direct
- NY 529 Direct YouTube page: www.youtube.com/NY529Direct
- NY 529 Direct Facebook page: www.facebook.com/NY529Direct
- College savings planner (tool): http://www.archimedes.com/
vanguard/csp.phtml - 529 state tax deduction calculator: http://www.archimedes.com/
vanguard/stdc.phtml - NY 529 Direct articles: https://www.nysaves.org/
home/basics-of-529s/articles. html
Disclaimer: Compensation was provided by NY 529 Direct via Momtrends. The opinions expressed herein are those of the author and are not indicative of the opinions of NY 529 Direct or Momtrends. Investments in the plan are subject to risk. Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other benefits that are only available for investments in that state’s 529 plan. The Comptroller of the State of New York and the New York State Higher Education Services Corporation are the Program Administrators and are responsible for implementing and administering the Direct Plan. Ascensus Broker Dealer Services, Inc., serves as Program Manager and, in connection with its affiliates, provides recordkeeping and administrative support services and is responsible for day-to-day operations of the Direct Plan. The Vanguard Group, Inc., serves as the Investment Manager. Vanguard Marketing Corporation markets, distributes, and underwrites the Direct Plan. No guarantee: None of the State of New York, its agencies, the Federal Deposit Insurance Corporation (FDIC), The Vanguard Group, Inc., Ascensus Broker Dealer Services, Inc., nor any of their applicable affiliates insures accounts or guarantees the principal deposited therein or any investment returns on any account or investment portfolio. New York’s 529 College Savings Program currently includes two separate 529 plans. The Direct Plan is sold directly by the Program. You may also participate in the Advisor Plan, which is sold exclusively through financial advisors and has different investment options and higher fees and expenses as well as financial advisor compensation. For more information about New York’s 529 College Savings Program Direct Plan, obtain a Disclosure Booklet and Tuition Savings Agreement at www.nysaves.org or by calling 1-877-NYSAVES. This includes investment objectives, risks, charges, expenses, and other information. You should read and consider them carefully before investing.
