Sand in the Gears

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Prepaid college tuition . . . sort of

January 1st, 2010 Posted in Uncategorized

Think those 529 prepaid tuition plans are a safe way to make your child’s college education affordable? Think again. The Money Blogger breaks it down: Alabama invested 70 percent of its plan’s funds in stocks, and assumed a perpetually high return. Peering closer, he reveals that while states with such prepaid tuition plans talk the language of guarantees, their fine print says otherwise. Buyer beware.