Missouri Celebrates 5/29 as 529 College Savings Day
Treasurer Zweifel says small investments can make a big impact
For Immediate Release
Thursday, May 28, 2009
May 29 is "529 College Savings Day" in Missouri in recognition of the importance of setting aside money for children’s higher education.
State Treasurer Clint Zweifel took the opportunity to highlight that MOST - Missouri’s 529 College Savings Plan - is a valuable tool for all Missourians, no matter how much they have to save. For as little as $25 a month, the plan helps families and friends easily establish and contribute to a child’s college savings, while offering tax advantages, a range of investment options and other benefits.
"Raising awareness of MOST 529 is important as families struggle with the rising costs of sending their kids to college," Treasurer Zweifel said. "Saving now can keep the cost of that education at a more manageable level. It takes only a small investment of $25 to get started in MOST 529. With compounding that small investment can have real results."
Compounding occurs when investment earnings are reinvested, thus earning more and more money as time passes. Compounding is a tool that is best if used as early as possible. Treasurer Zweifel provided an example.
"If you start investing $50 per month into the MOST 529 plan when a child is a newborn, you could accumulate $16,633 by the time the child turns 18*. This assumes a 5 percent annual return on a MOST account, but it underscores the importance of saving early," Treasurer Zweifel said. "These seemingly small investments add up over time and make a real impact on a child’s education."
MOST 529 offers federal and state tax benefits**, low costs, a low minimum contribution of $25 ($15 if contributing through payroll direct deposit) and flexible ways to contribute.
The plan also offers a range of age-based and individual investment options from Vanguard and American Century Investments designed to meet a variety of investment preferences and risk tolerances. MOST ranked in the top 10 of Savingforcollege.com’s best-performing 529 plans in the first quarter of 2009.
For more information about MOST 529 and 529-Day visit www.missourimost.org or www.treasurer.mo.gov.