Saturday, July 29, 2000
College program coming
Problem: You want to save money for your kids' college and have that money potentially grow faster than inflation.
Strategy: Try the Ohio College Savings Program.
According to the Ohio Tuition Trust Authority, the Ohio College Savings Program is scheduled to open this fall.
Until then, Ohio has offered only a prepaid tuition program. Created in 1989 by the Ohio General Assembly, the Ohio Prepaid Tuition Program has more than 92,500 children enrolled. The program provides a safe, simple and affordable way for Ohio parents to purchase their children's future college expenses at today's prices.
The prepaid tuition program is guaranteed to keep pace with the average tuition inflation at Ohio's four-year public universities and is backed by the full faith and credit of the state.
The new College Savings Program will offer many of the same tax advantages and benefits of the prepaid program but with important differences.
The Ohio College Savings Program will resemble a mutual fund product, earning market rates on investments. And, unlike the prepaid program, the college savings program will not be backed by the full faith and credit of the state of Ohio.
Contributions made in the savings program will be invested in professionally managed portfolios of stocks, bonds and money-market mutual funds. The Ohio College Savings Program may be appropriate for investors who believe in the long-term viability of these markets and who are comfortable with the risks associated with them.
Look to www.ohiocollegesavings.org for more information about the prepaid tuition and college savings programs. Information is also available by calling (800) 233-6734.
Readers: Consider Savvy Strategies as general information only and seek the help of professionals because circumstances might vary.
Planners: Share your unique strategies or new approaches with the Enquirer and our readers. Send your Savvy Strategies to Amy Higgins, 312 Elm St., Cincinnati, OH 45202 or e-mail email@example.com.
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