Guest columnist: Savings plan puts small resources to work

Joplin Globe - By: Clint Zweifel, Missouri State Treasurer

May 28, 2009

In the Missouri State Treasurer's Office, we are always working on the state's investments for taxpayers. Today, May 29, national 529 College Savings Day, we'd like to take a step back and look at the investments Missourians are making in children's higher education each and every day.

Each year, 529 College Savings Day promotes the importance of setting aside money for children early and often in a 529 College Savings Plan. Missouri's plan is MOST 529.

In these tough economic times, it becomes even more important to remember there are small investments we can all make that can pay big dividends in the future.

One of the most important investments we can make is in our children, and MOST 529 makes it easy. With this plan, small investments over a long period of time can pay off. For as little as $25, anyone can open a MOST 529 account for a child and see that investment grow with time. With the power of compounding, an investment can have real results for a child's education. Investing early and consistently is critical.

One example to consider when thinking about saving for college is that an investment of just $50 made each month into a MOST 529 account from the time a child is a newborn to when he or she is 18 could accumulate $16,633. This example, based on a 5 percent annual return, is not guaranteed, but displays the power of small investments. It shows clearly you do not have to invest large sums of money to make an impact on a child's life - an impact that brings them closer to the dream of a college education.

The lesson of making small investments is something I learned when I was growing up. My parents did not have large sums of money. My dad was a carpenter and my mom was a hairdresser, and we did not have a lot of financial sophistication. Yet, I think I learned more about investing from my parents and my family than I did from anyone. It was the idea that if you are a member of a community, you should stand up and get involved. It is the idea that you are making a small investment. My parents did not have the money to figure out whether mutual funds or direct stock investments were their best choice, but they had small resources and the ability to teach a child about investing. That is what MOST 529 is about. It is a program that can be utilized early and often by everyone.

When I think about MOST 529, I think about being the first in my family to walk on a college campus and graduate. I think about the opportunities I was given and the teachers who took an interest in me. It was a dream full of opportunities I never knew existed, and it was started by the small investments my parents made in me early and often. I encourage Missourians to make that same investment in the lives of children whom they know.

As 529 Day comes and goes, please take a moment to visit www.missourimost.org or call 1-888-414-MOST. The plan offers federal and state tax benefits, low costs and flexible ways to contribute. Go online or call to pick the investment options that are right for the child in your life.

Missouri State Treasurer Clint Zweifel is chairman of the Missouri Higher Education Savings Program Board, which oversees the MOST 529 Plan. He can be contacted at treasurer.mo.gov.

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