MISSOURI (KFVS) - We all know a little too well how much higher education can cost, and sometimes even education before high school graduation if you decide to take that route.
There is something called The Missouri MOST 529 savings plan.
You can sign up for it, put in some money, and watch it grow until your child is ready to use it...
There are of course ups and downs, and different investments, but there was a big change with the new tax law in the U-S which allows you to take that money out before college to use on other education.
JP Thompson, a financial advisor in Cape Girardeau with Thompson Financial Advisors, says there are three big tax incentives to using this plan.
"The tax benefit up front with the state of Missouri is you get a tax deduction on your contribution," Thompson said. "You don't get any 1099's on the growth, which is fabulous. And then the third and the most attractive is tax-free withdraws. You don't get dinged federally or at a state level on any of this money that sees, that your beneficiary gets to see. It's 100%. No taxes are taken out of that."
Thompson says there are three main investment types: conservative, moderate and aggressive allocations.
"Money is directly invested in stocks and bonds," Thompson said. "You could have different allocations. You could say I want less stocks, which seem to be more volatile...but bonds seem to be more conservative, so what you see in conservative allocations is you see more bonds than stocks. Obviously conservative, would be you wouldn't be able to see as much asset accumulation as you would in an aggressive portfolio."
For more on the Missouri MOST 529 savings plan, click here.