Parents can find solid investment in college plan

Tuesday, October 21, 2008

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Sallie Salinero-Plunkett says she will continue adding to her children's pre-paid college plan.

(Bay News 9) -- Parents who are worried about putting their children through college and are looking for a good investment can find it in the Florida prepaid college plan.

The program doesn't have anything to do with the stock market and the state guarantees your investments.

If a baby gets enrolled today in the Florida prepaid college fund, it will cost around $3 a day. Eighteen years later that money will end up paying for four years of college at today's tuition cost.

Sallie Salinero-Plunkett says she doesn't want her two children to do what she had to do.

"I actually paid my way through college, and it was very difficult," Salinero-Plunkett said. "I didn't get to do all the fun things I wanted to do because I was working all the time."

So when her kids were born, 15 and 11 years ago, Salinero-Plunkett started working toward their college careers by putting $30 dollars a month in the Florida prepaid college fund.

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Raymond James Financial planner Jeff Harring says the Florida prepaid college plan is like paying three years of college and getting a fourth free because it's tax-free.

"That tax benefit is huge, if you have a child who is 5-years-old, you'll avoid any and all taxes on that money for the rest of that child's college career," Harring said.

Parents can enroll in the plan from now until January 31st at the current rate. The monthly payment depends on how old the child is and the plan chosen. Also, the value of the plan can be transferred to most out-of-state private and public colleges and universities.

The only downfall Harring could think of is that several states have canceled or suspended their college payment plans. But if that would happen Florida law prevents parents from losing their money.