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529 Plan

Definition: A 529 Plan is an investment plan that allows you to make prepayments for your child's (or your own) higher education.  Think of it as an account that allows you to save for college (if that wasn't already obvious).

One big downside:  You are only allowed to contribute up to the total amount of the college education.  So you need to be extra careful that you don't overfund the account.  Check with a financial advisor before opening one of these accounts to figure out how much you should contribute.

TeenAnalyst Advice:
529 Plans are great because they allow you to start saving for college and putting your money to work for you.  They're also nice because they don't have any income restrictions on creating these.


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Definition of the Day Control Premium

Control Premium – a control premium is amount of money or assets an investor will pay to gain control of a company.  The control premium in most case is higher then the market value of the company.  The control premium is the actual difference in shares that an investor has...

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