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MASON CITY, Iowa - A new study from Forbes found that Iowa has one of the best college savings plans in the country.
According to state treasurer Michael Fitzgerald, 'College Savings Iowa' is one of the best performing 529 plans, and in the top 5 nationally based on 10-year returns.
Bridget Shultz is an academic advisor at NIACC, and has four kids. Her family has saved for over 12 years, and by the time that her oldest went to college, there was enough saved for 2 years' worth of community college, something Shultz was amazed by.
"The knowing that you were prepared and had that money for your kids was absolutely perfect for us, and we were really happy with the return on the plan," Shultz says.
She also describes how the process worked for her, and some advice for those who may be considering it.
"What worked well for me was putting a little bit away each month and not thinking about what I was missing. It came right out of my check, I never even thought about it, you get your statement a few times a year, and you're able to see what you're investing in your child's education," Shultz says.
The study notes that tax breaks are another reason why savings plans are attractive; in Iowa, taxpayers can deduct up to $3,239 in contributions per beneficiary from their adjusted gross income.
In a similar study, the Washington, D.C.-based CollegeSavings Foundation found that 83% of respondents are saving for their child's college education - an all-time high in the 11-year history of the survey.
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