Friday, April 20, 2007
For What It's Worth: Pre-paid Tuition
It's one of the most important investments you can make: your child's education. But which college savings plan should you put your money in? Seven's Craig Stevens says, For What It's Worth, do your homework first!
WSVN -- She's only crawling now, but, one day, little Logan Feldman will be walking up to accept her college diploma.
Her grandmother Reggie Weissler is making sure of that.
Regina Weissler: "Because it is my belief that a parent or grandparent can give no greater gift to a child than an education."
Reggie already purchased the Florida Pre-Paid College Plan for Logan's future.
Seven's financial expert Allie Jablon says that's a smart decision.
Allie Jablon: "For all newborn babies, stats show that by the time they're ready to go to college tuition rates will have more than tripled."
But which plan is right for you?
Florida has two college savings plans to choose from. First is the Florida Pre-Paid Tuition Program.
Allie Jablon: "With a pre-paid tuition plan, the premise is you can pay today for future costs and lock in today's rates."
But, keep in mind, this plan can only be used at Florida's eleven public universities.
The advantages: It's risk-free and has flexible payment options.
Allie Jablon: "You can pay in one lump sum, you can pay over a five-year period of time or you can pay monthly, if you're interested in spreading out those payments over a very long period of time."
You can also choose the Florida College Investment Plan.
Allie Jablon: "With the investment plan, you choose your investment strategy, but nothing is guaranteed insofar as how that investment is going to perform."
This plan involves more risk.
You can make money through your investment options, but you can also lose money if the market goes bad.
The advantage is that it covers any public or private university anywhere in the country.
Reggie says it's a solid investment for her, and she's getting ready to give another gift of education -- a grandson is expected in June.
Kimberly Feldman: "Now my children are going to be able to go to college, and that helps us with our finances. We're just forever grateful for this gift they've given us."
Keep in mind, the Florida Pre-Paid College Plan will not cover all of your college expenses.
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