Money: Do 529s Pay?

Saying that a 529 Savings Plan is the best way to invest for your kids' education is like saying there are good shows on TV. It may be true--if you hit the right channel at the right time.

The basic case is this: 529s let you invest money without having Uncle Sam reach in each year and tax your earnings. Thanks to the magic of compounding, a yearly investment of $3,000 that grows, say, 7% annually, to $38,632 after 10 years, could grow tax free to $44,351, according to Robert Matricardi at T. Rowe Price. (You also don't get taxed when you...

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