Whether you live in the great state of Texas or not, Texas college plans can be a good way to save for your child’s college education. These plans come in a couple of varieties, and both can be good options for saving for your child’s education. The college plans in Texas come as regular 529s and as prepaid tuition plans.
The main plan used by Texans and even out of state investors is the Texas College Savings Plan. This plan offers several college plans for different types of investments. It’s basically a 529 plan with tax advantages for every investor. These college plans grow tax free for as long as you have the investments. They also come with special tax advantages for Texas residents and tax payers.
The Texas college plans are managed by OFI Private Investments, a subsidiary of Oppenheimer, Inc. This trusted company provides several investment types and options for those who want to use these college plans to save for their education. The fees for these college plans range from .40% to .88%, some of the lowest fees in the industry. It’s definitely a better option than private investments, for sure.
One of the good things about the Texas college plans is that you can open them with next to nothing. It takes just a $25 investment to open one of these accounts. You can contribute up to $320,000 over the life of the plan. Plus, with compounding interest, you could end up with well over $300,000 in savings for your child’s college education using these college plans.