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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: ThePauperOfNorthLake on December 14, 2013, 07:50:32 PM

Title: College Education Savings Plan for Spouse ($20k Goal/2 yr time horizon)
Post by: ThePauperOfNorthLake on December 14, 2013, 07:50:32 PM

Hi everyone,

My spouse wants to pursue further education that will cost about $20k.  She is aiming to start within the next two years. 

What's the best savings vehicle to reach this goal?  Since it's a short time horizon, I know we've got to stick to safe investments.  I've done some cursory research on Series I and Series EE savings bonds, 529s, etc. but I thought I'd poll the MMM forums for advice.

Any help would be greatly appreciated!

Title: Re: College Education Savings Plan for Spouse ($20k Goal/2 yr time horizon)
Post by: indepency on December 15, 2013, 09:44:12 AM

Do 529s in your state carry any tax benefits? I am currently trying to save a similar amount on a similar timeline for my own education costs, and I've opened a 529 with New York State - contributions are tax-deductible up to $5000, which could be a pretty decent tax savings. It's a little risky, but I'm also thinking about a doctorate so my thinking is that if I take a hit in the short-term I can wait it out til later in my schooling.

I'll definitely be interested to hear any other advice on this, though.