October 28, 2005

Saving for higher education

The MGH and the Massachusetts General Physicians Organization (MGPO) teamed up to host a seminar "Investing in Higher Education and Reducing Taxes — How a 529 Plan Can Work For You" Oct. 18 and 19 in the O'Keeffe Auditorium. MGHers gathered to hear a panel of consultants from Fidelity Investments, TIAA/CREF and the Vanguard Group — the same investment companies sponsored by MGH for saving in the MGH Tax Sheltered Annuity Program — to learn about different ways to save for college. The seminar focused on 529 Plans — an investment plan for higher education that offers tax-free investment returns and can be put towards tuition, room and board, books, transportation costs and more — and how they can play an important role in college and financial planning goals.

Moderated by Kyle Upton of The Financial Planning Group, the panel described the types of 529 Plans available, ways to pay for college or higher education and how to choose a plan and investment company.

"The most important points to remember are to start saving as early as possible and that even a small monthly contribution can make a difference," said Upton. "The worst decision is to make no decision at all."

MGHers who are interested in opening a 529 Plan should contact their investment advisor or the Benefits Office at (617) 726-8133. Members of the professional staff should contact the Professional Staff Benefits Office at (617) 726-9267. Saving in a 529 Plan can be set up as a direct deposit through the payroll sytem.

From left, Upton; Mike Albert, Fidelity Investments; Tom Cerrone, the Vanguard Group; and Rich Calvario, TIAA-CREFF