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Savings Savings Accounts Accounts comparison comparison College College

College Savings - 529 vs. UTMA P

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SavingsSavingsAccountsAccountscomparisoncomparison

CollegeCollege

SAVING FOR 18 YEARSSAVING FOR 18 YEARS

Standard Savings Account

Savings per month$400After 18 years = $94,622.46

*Assuming an interest rate of 1.00% compoundedmonthly with an initial starting balance of $1.00

529 or UTMAInvesting per month$400

After 18 years =$199,132*Assuming average annual rate of return is 8% with an initial starting balance of $1.00

PurposePurpose

Can only be used for thepurpose of higher education

ControlControl

TaxesTaxes

PurposePurpose

ControlControl

529 Savings Account UTMA

TaxesTaxes

vs.vs.

FEATURES:FEATURES:

Can be used for anything: Highereducation, traveling, etc.

Parents maintain control and can be used forsiblings or any other relatives

Parents lose control when thechild reaches majority age

Earnings in the account are taxfree Earnings in the account are taxable

Which plan is the best for you?

If you are not confident your childwill attend higher education or youmay need the funds for alternative

expenses, consider a UTMA.

If your primary focus is saving forhigher education, a 529 plan may

be the best choice for you.

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