Investor Alert

College Savings Plans — School Yourself Before You Invest

We all want to get our money's worth. This is true when it comes to paying for a college education — but it's also true when it comes to investing for higher education. Since 1997, investors have had the opportunity to contribute to Section 529 college savings plans, which offer tax advantages that have made them a popular investment vehicle for saving for college. The good news is that there is no shortage of college savings plans to choose from — especially given the fact that in many cases you do not need to be a resident of a state to invest in that state's college savings plan. But select with care! Virtually no two plans are the same.

Don't shortchange yourself by investing in 529 college savings plans with high fees, plans that currently do not offer them state tax benefits, or both. Read NASD's Alert to learn 8 easy lessons that will help you make smart college savings plan choices.

Tools You Can Use

Use NASD's New 529 College Savings Plan Expense Analyzer

Because fees and expenses can vary widely from plan to plan, NASD has developed a tool to help you compare how these fees and expenses can impact returns. The analyzer is designed to work with most college savings plans. It explains the various fees and provides guidance about where to find them in 529 disclosure documents. It also provides prompts that help ensure the best possible comparison between plans. Try it now.

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College Savings Learning Center — Know All Your Options

Don't limit your research to college savings plans alone — there are a number of other tax advantaged college savings options you can consider. These include:

• Prepaid Tuition Plans
• Educational Saving Accounts
• Custodial Accounts
• Savings Bonds

The Smart Saving for College learning center explains these different tax-advantaged alternatives for saving for college, detailing the advantages, disadvantages and costs of these options and listing resources families can use to obtain more information on saving for college.

A print version is also available and can be ordered by calling 240-386-4200.

Tools You Can Use

College Savings Calculator

Use our College Calculator to determine the amount you need to invest each year to ensure that you will have enough to cover your child's college costs.

Past Issues of Investor News Available

In response to numerous requests, previous issues of Investor News are now available on our Web site.

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