Archive: Business & Technology

This has been a particularly difficult year for personal finances.

With costs of almost everything increasing and incomes remaining flat or declining, families are looking for ways to save money. One easy way to stretch some of your hard-earned money while investing in the future is by making year-end contributions to New York’s 529 College Savings Plan.

Contributions to the NY 529 Plan are tax-deductible for New York State residents and future withdrawals are exempt from federal income tax as long as the money is used for qualifying educational expenses. However, you must contribute to the plan by December 31 in order to qualify for the deduction on your 2010 New York State taxes.

Right now may not seem like the best time to invest money in the market, but depending on your individual circumstances, the flexibility of New York’s Plan offers some appealing investment options.

Parents with young children typically have an investment horizon of fifteen years or more and a more aggressive investment approach may make sense. If the child is closer to college age, this shorter investment horizon may call for investment selections of a more conservative nature.  New York’s Plan offers 13 individual portfolios and you can select up to five investment options per contribution. And changes to portfolios are allowed annually.

As families take stock of their finances, I encourage everyone to look closely at New York’s 529 College Savings Plan. Every dime counts during this economic downturn and the benefits of the NY Plan could help you save some money now, while helping you reduce your college tuition costs in the future.

----
v6i46