Q:

What are the benefits of investing in a Florida Prepaid College Fund?

A:

Quick Answer

The Florida Prepaid College Fund allows parents to save for their child's college from the time the child is born. Parents may set up the fund to suit their budgets and goals and the state offers an age-based option that will automatically save money based on the child's age, according to the Florida Prepaid College Board.

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Full Answer

The Florida Prepaid College Fund offers parents the benefit of saving any amount of money beginning at any age they choose. The program is fully customizable and parents save only that with which they are comfortable. It gives parents the right to change investment allocations as often as they want and parents need not be residents of Florida to begin saving, reports the Florida Prepaid College Board.

If for some reason the child graduates early or fails to use the entire savings account, the remaining balance in his or her account may be used for graduate school or transferred to another family member. This plan works well with the Florida 529 Savings Plan and the two may be used together.

There is no fee to use the Florida Prepaid College Fund. However, to open an account, parents must make an opening deposit of at least $250 or set up a recurring payment plan of at least $25 per month, as of 2015.

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