Planning to Pay for College? Check Out a 529 College Savings Plan

Apr 26, 2001, 01:00 ET from Strong Capital Management

    MILWAUKEE, April 26 /PRNewswire/ -- A study commissioned by Strong Capital
 Management finds that 68 percent of parents anticipate paying at least half of
 their children's higher education expenses, and more than one-quarter of these
 parents foresee footing the whole bill.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20010426/MNTH011 )
     Moreover, the study, conducted by TeleNation, found parents expect the
 total tab for higher education to cost between $50,000 and $100,000 for each
 child.
     "Parents plan to contribute substantial amounts towards their children's
 education, even in light of escalating costs," said Sarah Henriksen, Strong's
 Manager of College Savings Plans, adding that college and related expenses for
 both private and public universities are rising at annual rates of above
 7 percent.  "Those who start early, save often, and take advantage of the
 power of compounding will be better prepared when it comes time to write the
 check."
     The national telephone survey of 368 parents of college-bound children
 under 18 found that nearly one-quarter of parents are unaware of one of the
 best college savings vehicles available -- state-sponsored 529 college savings
 plans, also called Qualified State Tuition Plans.  Increasing in popularity,
 529 plans operate somewhat like 401(k) retirement savings plans, offering
 competitive stock and bond market investment options that grow money
 tax-deferred specifically for higher education expenses.
     Strong Capital Management manages two 529 college savings plans:  the
 nationally available EdVest College Savings Program, sponsored by the state of
 Wisconsin; and the Oregon College Savings Plan, which will open to
 non-residents in Fall 2001.
     "529 college savings plans are the best thing the government has done to
 encourage saving since the IRA," said Henriksen.  "These programs offer high
 contribution limits, varied and competitive market-based investments, and
 significant estate-planning benefits.  Savings grow tax-deferred, and upon
 withdrawal, the distributions are taxed at the child's rate, which is
 typically much lower than the contributor's rate."
     All 50 states now either have a 529 plan, or have approved 529 plan
 legislation.  State-sponsored plans differ with respect to required fees,
 minimum and maximum contributions, state tax benefits, and other important
 considerations.
     Information about 529 plans is available from Strong's College Planning
 Specialists at 800-368-8040, a toll-free line answered 24 hours a day, 7 days
 a week.  Information can also be accessed at Strong's interactive web site
 ( http://www.Strong.com ), http://www.EdVestOnline.com , or
 http://www.OregonCollegeSavings.com
     One of the nation's leading investment management firms, Strong Capital
 Management is a privately held, registered investment advisor serving
 individuals, retirement plans, financial advisors, institutions, and
 foundations.  Securities are distributed by Strong Investments, Inc., an
 affiliated company.  Founded in 1974, the firm is headquartered in Menomonee
 Falls, Wis., and manages over $42 billion.
 
     Strong Capital Management, Inc. administers and manages two 529 college
 savings plans:  EdVest, a program sponsored by the state of Wisconsin and
 available nationally, and the Oregon College Savings Plan, to be offered
 nationally in fall of 2001.
 
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                http://tbutton.prnewswire.com/prn/11690X33681333
 
 

SOURCE Strong Capital Management
    MILWAUKEE, April 26 /PRNewswire/ -- A study commissioned by Strong Capital
 Management finds that 68 percent of parents anticipate paying at least half of
 their children's higher education expenses, and more than one-quarter of these
 parents foresee footing the whole bill.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20010426/MNTH011 )
     Moreover, the study, conducted by TeleNation, found parents expect the
 total tab for higher education to cost between $50,000 and $100,000 for each
 child.
     "Parents plan to contribute substantial amounts towards their children's
 education, even in light of escalating costs," said Sarah Henriksen, Strong's
 Manager of College Savings Plans, adding that college and related expenses for
 both private and public universities are rising at annual rates of above
 7 percent.  "Those who start early, save often, and take advantage of the
 power of compounding will be better prepared when it comes time to write the
 check."
     The national telephone survey of 368 parents of college-bound children
 under 18 found that nearly one-quarter of parents are unaware of one of the
 best college savings vehicles available -- state-sponsored 529 college savings
 plans, also called Qualified State Tuition Plans.  Increasing in popularity,
 529 plans operate somewhat like 401(k) retirement savings plans, offering
 competitive stock and bond market investment options that grow money
 tax-deferred specifically for higher education expenses.
     Strong Capital Management manages two 529 college savings plans:  the
 nationally available EdVest College Savings Program, sponsored by the state of
 Wisconsin; and the Oregon College Savings Plan, which will open to
 non-residents in Fall 2001.
     "529 college savings plans are the best thing the government has done to
 encourage saving since the IRA," said Henriksen.  "These programs offer high
 contribution limits, varied and competitive market-based investments, and
 significant estate-planning benefits.  Savings grow tax-deferred, and upon
 withdrawal, the distributions are taxed at the child's rate, which is
 typically much lower than the contributor's rate."
     All 50 states now either have a 529 plan, or have approved 529 plan
 legislation.  State-sponsored plans differ with respect to required fees,
 minimum and maximum contributions, state tax benefits, and other important
 considerations.
     Information about 529 plans is available from Strong's College Planning
 Specialists at 800-368-8040, a toll-free line answered 24 hours a day, 7 days
 a week.  Information can also be accessed at Strong's interactive web site
 ( http://www.Strong.com ), http://www.EdVestOnline.com , or
 http://www.OregonCollegeSavings.com
     One of the nation's leading investment management firms, Strong Capital
 Management is a privately held, registered investment advisor serving
 individuals, retirement plans, financial advisors, institutions, and
 foundations.  Securities are distributed by Strong Investments, Inc., an
 affiliated company.  Founded in 1974, the firm is headquartered in Menomonee
 Falls, Wis., and manages over $42 billion.
 
     Strong Capital Management, Inc. administers and manages two 529 college
 savings plans:  EdVest, a program sponsored by the state of Wisconsin and
 available nationally, and the Oregon College Savings Plan, to be offered
 nationally in fall of 2001.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X33681333
 
 SOURCE  Strong Capital Management