Michigan 529 College Savings Presentation

Updated : Sep 05, 2019 in Articles

Michigan 529 College Savings Presentation


Hello, and thank you for joining us. Today
we’re going to be discussing saving for college in Michigan, with Michigan’s 529
college savings plans, the Michigan Education Trust and the Michigan
Education Savings Program. So you probably know that higher education
really is important nowadays. Not only will an individual with a bachelor’s
degree earn more money, but they also will have a lower unemployment rate. This
chart kind of shows the higher your degree attainment the more money you’ll
make, but also the lower unemployment rate that you’ll see as well. And if you
haven’t been in college for a while you may not be aware of how much college
actually costs, so these are some incoming freshman costs for the fall
2018-19 school year for different schools around Michigan. You can see the
University of Michigan Ann Arbor tuition is a little over $15,000 per
year, and when you tack on room and board you’re looking at nearly 27,000 dollars
for one year. You also see Michigan State’s up there
at about $25,000. If you want to try to save a little bit of
money you do have the Community College option, Grand Rapids Community College
tuition’s about $3,500 a year, and usually your room and board
expenses at a community college are really going to be living at home or
commuting from an apartment; so that is a really good way to keep costs down.
Kalamazoo College is a private Michigan University, and that tuition is looking
at about $48,000 for one year. So over four years that
will add up to a significant amount of money. And we do like to show an option
as well as an out-of-state University so Indiana University Bloomington, paying
out-of-state tuition at about $35,000 a year and with room and board you’re
looking at just under $46,000 per year.
These are incoming freshman costs, so you want to think of multiplying this by two
or four depending on the type of degree; and also realizing that upperclassmen
pay more than underclassmen, so these are kind of your base level costs. So that’s
really why it’s important to really think ahead and save for college, because
college costs have historically doubled every 10 to 15
years, so if you have a small child this number could be really a lot higher by
the time they enter college. And we talk about tuition increasing, it really has
outpaced everything else whether it be housing, apparel, even medical care, so
over the last 35 years or so you can see it’s increased almost 800%. And
cost arising because colleges are spending more on attracting students,
whether that be through a lower student to faculty ratio, or better buildings,
nicer residence halls, just lots of different reasons, and they’re also not
receiving as much money from the state. So these reasons have really increased
the price of college, a lot. So how are Michigan families paying for college? We
actually did a study at the Michigan Education Trust, this last year on
different ways that people are saving and really the majority of people are
saving, but they’re saving and a traditional savings account which may
not get you a lot of advantages, and may not allow your money to grow as much as
it could if you started saving in a thing like a 529 plan. So we’ll kind of
talk about reasons why can grow a little bit more in a plan like MET or MESP,
but really about a third of the payment to college is gonna be through
scholarships and grants, that’s free money, money you don’t have to pay back. A
third it’s gonna be through a parent income in savings, and that can include
things like their 529 plan, but you also have a really large chunk that’s gonna
be borrowing; whether that student borrowing or parent borrowing. Really,
your student is gonna be limited to how much they can borrow from the federal
government, per year, and also on a lifetime. So you can reach your lifetime
caps pretty quickly if you don’t have enough scholarships or grants or savings
to cover up that gap. So just kind of give you an idea of how people are
saving, and things you might want to think about, coming in the future. And it
has shown that people who pay or save through a 529 plan save on average, a higher amount than those who just saved through a traditional savings account or checking account. The State of Michigan has three different section 529 college savings plans, and 529 is really
just an IRS tax code. So, we have MET which is a prepaid tuition program, it
was the very first in the nation, it was implemented in 1988, the accounts really
have over 1.1 billion dollars in assets, and it’s continuing to grow each year.
MESP is a direct sold 529 college savings plan, so it works much like a
retirement account but it’s for college. It’s investment based and it started out
in the year 2000 so coming up nearly on 20 years, so that one continues to grow
as well at over 5.5 billion dollars in assets. And then we have our
third plan, the Michigan 529 advisor plan; this is also a savings
account, a 529 savings account, but is sold through financial advisors. So you
do get an advisor along with this, but with that will come a little
higher cost, so we don’t really bring that in this particular presentation. If
you’re interested in an advisor sole plan, you would want to contact your
financial advisor. There are many similarities, between MET and MESP. One big myth, is people think that these plans are only used in the state of
Michigan, that’s not true. Benefits can be used at any eligible institution,
nationwide, and in some cases, schools abroad. And they can also be used for
qualified expenses, so tuition fees, room and board, books, those kind of things;
and we’ll discuss the specifics on how you use each program for each kind of
fee. Unused benefits can be transferred to family members of the original
beneficiary, so it could even be their own children someday, siblings, cousins,
niece, nephew, and if the child ends up not going to college, the assets can be
refunded as a non-qualified withdraw; Just keep in mind if you don’t use the
money for qualified higher education expenses, you may have tax implications
on the earnings portion. The big benefit to a 529 plan, are the
tax benefits. So since both our section 529 college qualified tuition programs,
both are going to qualify you for these tax benefits; and they will get you a
state of Michigan income tax deduction. On MET, you can deduct your entire purchase
price, so there’s not a limit. Whatever you contribute in any given calendar
year, can be used as a State of Michigan income tax deduction. MESP, you can deduct
up to $5,000 per year for single filers, or ten thousand per year
for joint filers. Keep in mind, that’s on a per filer basis, not a per beneficiary
basis. Both of them also offer tax deferred earning potential, so any growth
on these you won’t have to pay taxes on as long as it’s used for qualified
higher education expenses. And they are treated as complete gifts, for federal
and estate gift tax purposes, so we do have a lot of grandparents who like to
gift into these programs, and that’s definitely allowed. And you can see that
tax savings really add up over the course of time, so the longer you have
this money in one of these programs, the more it’s going to grow, so therefore
the more money you can save, by not having to pay taxes on the earnings. You
know if you put this money in a traditional savings account, or a
traditional investment account, you’re going to be paying taxes on the earnings
every year; and a 529 plan you don’t. There’s also many different ways you can
make contributions into either program, you do have the option of setting up a
payroll deduction which we can work with you and your employer on. You also can
set up an automatic bank account deduction, you can send in a check, make
an online payment, and also gifts from friends and family are accepted, so it’s
a really great way for you to utilize your college savings account at
birthdays or holiday time. And it’s gonna have a very small impact
on financial aid, because in most cases these plans are going to be considered a
parental asset, and that has a lower impact on federal financial aid
eligibility. If you were to take that same money and
put it in an UGMA account or an IRA it’s gonna have a larger impact. If you were
to withdraw money from like your retirement account for college,
eventually that’s going to be considered income on your federal application for
student aid, so it’s gonna reduce your aid by a much larger amount, versus if
it’s in a 529 plan. So it’s gonna have very little impact on any kind of
need-based aid you may be eligible for. Talking about the estate planning
benefits, so we do have a lot of grandparents, especially, who are
interested in gifting into their college savings program, so you can do that up to
the maximum allowed; So if you have specific questions this would be a good
time to contact your estate planning attorney for that. So now we’re going to
talk about the Michigan Education Trust. So we’re gonna go over the details of
how this program works, and how to use it. So MET was designed to allow parents,
grandparents, or just other nice people, to prepay college tuition, essentially
you are purchasing your college tuition now based upon today’s prices, and then
MET will pay out at future tuition costs. It does work best at a Michigan
public university, but you can also use it at private out-of-state schools, or
public out-of-state schools, trade schools, lots of different ways to use it,
just works a little bit different. You want to think of MET more like
insurance, you’re not gonna have to worry about what the market is doing, or what
the price of college does, we worry about that; so we take everybody’s funds and
pull them together, in order to pay out our on our future tuition obligations.
And it’s secured by the assets of the trust, so even though this is a State of
Michigan program, the money does not go into a general State of Michigan fund,
and can’t be allocated for other things by the legislature. So MET is completely
separate. When you purchase a contract, you’re going to have one purchaser per contract. That’s typically the parents, or the
grandparent, you are allowed to name a contingent contract purchaser; that’s
just a third person who can get contract information, they can’t really do
anything with the contract, unless something was to happen to the purchaser,
but it’s nice to have a third person have access. You’re gonna have one
beneficiary per contract as well, that beneficiary can be any age, MET is
definitely going to be more beneficial if the child is younger, but we have
current college students who will buy MET contracts, just because in some cases
were cheaper than their current tuition rates. The beneficiary does have to be a
Michigan resident at the time of purchase, but you can move out of state
the next week that’s fine, you’re still going to be eligible to use it. If the
original beneficiary doesn’t need all of their met contract, or doesn’t go to
college you can transfer it to a new beneficiary, that new beneficiary does
not have to be a Michigan resident so if you buy this for your child, your child
moves to Texas, they have their own child and they have leftover MET credits, they
can transfer it to that new child, which is a Texas resident, that’ll be fine they
can still use it in the future. There are three different types of MET
contracts you can choose from, community college, limited benefits, and full
benefits. A community college plan is designed to pay the in-district tuition
and mandatory fees at any Michigan public Community College. So if you
purchase a Community College contract, and the child decides that they don’t
want to attend a community college, that’s okay what we’ll do is we’ll
convert your credits into a dollar figure and if they want to attend a
four-year school, we’ll just direct those dollars to that four-year school. It may
or may not pay for the full cost of that four-year school, but you can definitely
still utilize it. Full benefits and limited benefits are University plans; if
you have a full benefits contract, it will pay credit for credit at any
Michigan public university, no matter if you go to the most expensive University,
or the least expensive. However many credits you’ve purchased, we will pay
whatever those credits cost, even if it’s double what you paid for your contract.
If you have a full benefits contract, and the child decides they don’t want to
attend a Michigan public university, they want to attend an out of state school, that is fine, what we’ll do is we’ll convert your credits
you’ve purchased into a dollar figure, that dollar figure will be be based upon
the average of the Michigan public universities at the time the child goes
out of state, and will direct those funds to the other state school. It may or may not
cover the full cost of the other state school, but you can definitely still use
it. Limited benefits is also a University plan, but if the child decides to attend
what we consider an above average cost University, we may prorate the number of
credits that will actually pay to the school. So currently, if you have a
limited benefits contract, and the child attends University of Michigan Ann Arbor,
Michigan Tech University, or Michigan State University, they may have prorated
credits paid. For example, if you buy one year of limited benefits, and the child
decides to attend Michigan State University, instead of us paying 30
credits to MSU this year, we’re only paying 28 credits. So it’s about a class
a year that MET is not covering, however if they to attend Central or Eastern or
Oakland or Ferris, any of those other Michigan public universities on a
limited benefits contract, we’re gonna pay credit for credit. The other
difference between full benefits and limited benefits, is if they attended
out-of-state school on a limited benefits contract, we’re going to be
converting the credits into a dollar amount based upon the lowest cost
Michigan public university at the time they go out of state. And you can mix and
match contract options as well, so a little hint for you, if you were to do
two years of limited benefits in two years of Community College, that can
still get you to a bachelor’s degree but it gets you there about half the cost of
four years of a full benefits contract. Once you decide which type of
contract or contracts you would like to purchase, you need to choose payment
option. So we have three different payment options, lump sum, pay as you go,
and monthly payment plans. Lump sum, you tell us how many semesters you want to
purchase, we tell you how much that costs, and then you pay that amount, that
contract is purchased, and closed to future contributions. Pay-as-you-go you
can actually buy by the credit hour, so if you were to start a pay-as-you-go
contract you would just need to put in at least enough money to purchase one
credit hour, after that you can put money in whenever you like in any amount as
long as it’s $25 or more. This is the most flexible option, because if you want
to set up monthly reoccurring payments you can, but it’s not required, you can
have friends and family make contributions into this, and it’s also
the same per credit price as a lump sum payment plan. So if you are looking to
buy a year worth of tuition right now, and maybe next year you want to buy
another year, I would recommend opening a pay-as-you-go contract, put the same
amount you would have to buy that one year as lump sum, but now your contract
is open, and you don’t have to open a new contract next year when you want to make
additional payments. You are subject to our annual price changes on a
pay-as-you-go contract, so we’ll warn you if we’re gonna do any kind of increase,
so just keep that in mind. Monthly payment plans, you tell us how
many semesters you ultimately want to purchase, and how long you want to pay on that, so you can choose four, seven, ten, and fifteen year payment plans. The one stipulation is that you can’t put freshman on a ten year payment plan because you need to have that payment plan complete by the time they graduate high school. Once you choose your duration, and how many credits you want to buy, we’re gonna tell you what your monthly payments
going to be, and we’ll lock in that monthly payment for the duration of your payment
plan, it’s never going to change. The downside to monthly payment
plan is that we build a 7.01% rate of return into your payments, so over the
course time you will pay more than if you were
to do a lump sum. You can kind of think of it like a car loan with a 7% interest
rate, over the course of your car loan you’d pay more, than if you were to just
buy the car outright in the beginning. Pay as you go you are subject to that
annual price change, but we would have to raise our prices more than 7.01 percent
every single year for you to come out more expensive on a pay-as-you-go, than a
monthly payment plan, and in the last dozen years or so we just haven’t done
that. So it’s definitely a really good option to look at that pay-as-you-go.
Again, you can mix and match payment options, contract options, you can do
payroll, ACH, online payments, lots of flexibility in order to make it whatever
fits your budget and your goals. MET contracts are a lot more flexible than
what a lot of people realize, so yes it is designed for in-state tuition and a
Michigan public college or university, but we have ways to pay out-of-state
schools or Michigan private colleges. It’s very easy to transfer among
colleges, we just need to be notified where you’re going to school, so that we
can work with that school. You can also use MET with scholarships; most people
always ask what happens if their child gets a full tuition scholarship, that’s
great, there are refund options based upon a full tuition scholarship, you
would just pay taxes on the earnings portion of that. But what’s more likely to
happen is that the child’s gonna get a partial scholarship. What will happen in
that case is most schools will still bill us for the full tuition and
mandatory fees, and let’s say the student has a $3,000 academic scholarship, once
MET pays that school, we’ve essentially overpaid by $3,000, so then that school
can use the MET funds towards something else on the student’s bill like room and
board or books or can refund it to the student as an overpayment. We can only
receive a bill for tuition and mandatory fees, but once met pays the school it
doesn’t matter to us how the school applies it to the account.
If you don’t need all of your credits for your undergrad degree you can use MET towards graduate school, it will pay at the upper level undergraduate rate, so
it’s not gonna cover all of grad school but it can cover a really good portion
of it. The student has 15 years from their expected high school graduation
date to do something with their MET; use it, transfer it, terminate it for not
attending to get a refund let’s say 14 years after they graduate high school
they have some met credits left they can transfer them to their child then their
child gets a new expiration date of 15 years from their expected high school
graduation date, so it really can keep going on and on. We do have a lot of
contracts that were purchased back in 1988, that were purchased for their
child that they’re now funding part of their grand child’s education because of
this, so lots of flexibility. This is just how we do that conversion from credits
to dollars. You can see that you get the highest benefit if they go to a Michigan
public school, next highest benefit is a Michigan private school, next highest
benefit out of state, or a scholarship and then finally there’s still benefit
if they don’t attend college. The most important thing on this slide, is that
little quote off to the left the total amount of the refund shall not be less
than the prepaid tuition amount if for some reason we do this calculation and
it comes out to be less than what you paid us for the contract, or college
becomes cheaper in the future, we will give you back the difference between
what we’re gonna pay out and what you pay for the contract; so you never get
less than what you paid, that’s where that insurance piece really comes into
play. Using MET is really easy, we just need to be notified where you’re going to school and depending on which type of school you’re attending, is which type of
form you need to fill out, and you can do it online or via a good old-fashioned
paper form. Once you notify us, we will notify the school the funds are
available, school sends us a bill, and then we pay the school directly.
So this will continue to happen prior to the start of every semester until you
either run out of benefits, or you tell us to stop so it really is hands off
once you get it going. And then obviously, the most important thing is how to
enroll. It’s really is easiest to enroll right on our website, which is setwithmet.com, there’s a nice open and account button on there, you can enroll anytime
between December 1st and September 30th 2019.
That’s our open enrollment period, if you do purchase pay-as-you-go contract, you
can make contributions when we’re not in an enrollment period, but the contract
does have to be opened during an enrollment period. You can also enroll
via mail, or drop a completed application off at a Treasury office. And
keep in mind we are always here to help too, so don’t hesitate to call us, our
number is 1-800-543-8242. You can call us anytime Monday through Friday 8 to 5. You can also reach out to us via email, on our website, on our social media accounts, lots of ways to contact us, because we do realize that questions come up and everyone’s situation is unique, so don’t hesitate to reach out. Now we’re going to talk about the Michigan Education Savings Program. So MESP or Michigan Education Savings Program is Michigan’s direct-sold 529 college savings plan. It’s more so an investment savings account, compared to the MET program which was more of insurance based. So within MESP you can actually name 3 people to the account, you have the account owner, that maintains full control, and that account owner can be a mom, dad, a grandparent, a brother, a sister, an aunt, an uncle family friend, or that nice neighbor down the road that wants to help put your kid through college. Anyone that has a valid social security number and is a US citizen can become an account owner. There are no income limitations, you must just be a US citizen with a valid social security number. You are also able to name a contingent account owner, or a second account owner. And this person has access to information, but they cannot make any changes to the account, requests, withdrawals and so forth. In case something were to happen to the account owner, that contingent account owner would assume full control at that point. and then ultimately we’re saving for the
beneficiary, which could be a child, a grandchild, yourself, a loved one, a
friend, anyone that has a valid social security number and is a US citizen can
also be a beneficiary. There are no age or time restrictions,
meaning the funds can transfer from generation or generation and that is
also tax-free, so it doesn’t matter if the child is not born yet.
You can certainly open the account for yourself and then once that child is
born you can simply transfer that account to the newborn once you have
their valid social security number. So in order to get MESP started, all you need
is a little contribution of at least $25 and that that actually purchases your
first share, and gets the account opened we like to suggest doing something or
making contributions on a monthly basis, or a quarterly basis, because you take
advantage of the compounding interest that builds along with investing, so the
more contributions you make over a period of a year or longer builds up
your account a little bit faster. Some of the fees that MESP does incur, we
do have what we consider a annual asset based management fee, that ranges between
.12% and .24% percent so on a $1,000 investment
that’s like a $1.20 to $2.40 per year so it
is very low when you consider it, or compare it to other 529 plans
across the US. So we are becoming one of the lowest cost 529 plans
in the US. We are less than half of the national average, when it comes down to
terms of cost. So when investing with MESP,
what makes it direct sold is that you actually choose the investment option
based on your own risk tolerance or investment risk or how much risk you’re
actually willing to take on these funds you’re investing. So within MESP there
are nine different investment options to choose from.
There are aggressive style investments, moderate style investments, and also
conservative investments, so there’s an investment option for you even if you’re
one to not take a lot of risk, or one that likes a lot of risk, there’s an
option for you. With an MESP there’s lots of flexibility and I
think that’s what makes it so attractive. So within MESP you can actually change
the beneficiary at any time, so even if your child, your first child, decided not
to go to college or didn’t need all the money you can certainly transfer that
money to another member of the original beneficiary’s family, so that could be a
brother, sister, first cousin, an aunt, an uncle, a mom, dad even if yourself if
you’re the parent and you want to go back to college
you can certainly transfer that back to yourself to study and keep going
continuing your education. And I think the best part is it does not have to be
used in the state of Michigan, it can be used across the US, and abroad. So I
know a lot of students nowadays are actually taking classes in different
countries, or studying abroad and as long as that school offers study abroad
credits or packages you can certainly use MESP funds for study abroad credits. Now MESP can be used to have various
types of colleges, it could be a four-year public or private institution,
a two-year Community College, a trade school, a voc school, a tech school, any
school that accepts federal student aid, or is federally accredited, you can use
MESP funds at that institution or school. Now when it comes down to what funds,
what the funds can actually be used for with an MESP, now we know we talked about
the MET program and how it could be used for tuition and mandatory fees, MESP can
be used for tuition, room and board, books, supplies, computers, any equipment or
software, required by either the instructor the institution or the course
itself so a lot of the flexibility comes to what the funds can actually be used. One of the nicest benefits with an MESP, which we kind of discussed
earlier to start the presentation, was the Michigan income tax deduction. So
anyone who contributes to the plan can actually take a state of Michigan income
tax deduction, so those contributing as single filers can deduct up to five
thousand per year, and any joint filers can deduct
up to 10,000 per year, and that’s per year per filer not necessarily per
beneficiary. So the best part when it comes down to account ownership, when the
child turns age 18 the account owner still maintains full control, the child
can’t call us up and say hey can I have that money in my 529 account or
MESP account, I would like to purchase a car? and the answer is no. The only person
that can make that withdrawal is the parent or the account owner. So opening an account is very simple to do.
This is actually a picture of our website or our home page, the website is
MIsaves.com and you can simply enroll right at the top in the right-hand
corner there, there’s an opening account tab, and that actually walks you
step-by-step through the account application some of the information you
need to get started would be dates of birth of the account owner, the
contingent account owner, and their beneficiary, as well as Social Security
numbers, dates of birth, addresses, and any bank account information that you need
to get started, or if you’d like to set up any automatic contributions, or
monthly contributions. I know we did we did not discuss, but if you are an
employer looking to implement 529 plans as a free voluntary benefit please reach out to us we have an appointment tool and you can also
request someone reach out to you on our website, and if you want we come out and
do free presentations to educate your employees based on setting up direct
deposit and getting contributions started from their paycheck. Now we don’t
consider it a payroll deduction, it is actually considered a payroll direct
deposit, so it’s just like setting up a bank account. So getting started you
actually want to do a few things first before getting started to make sure
you’re on the right path. We do have a college planning calculator on our
website that you can use to kind of get an idea of how much you
should be saving, how long until you attend college, and what the average
contribution is to meet your goal. You’d also want to build your own portfolio
you can certainly choose the age based options which move with a child’s age.
Those are more of the hands-off approach they all have different risk tolerances,
ranging from aggressive, conservative, or moderate, and one thing we like to
recommend is setting up something automatic or reoccurring, so you take
advantage of those automatic contribution or
compounding interest when you’re purchasing shares at different prices.
You will receive quarterly statements and you can choose those via email
or a delivery or simply have them come snail mail in the mail directly to your
home. And the best part is once you enroll online versus the paper application, you’re able to get instant access to your online account, you’ll be
able to make changes to your investments, make additional contributions, and really
check your account balances and things like that at any time. So now we’re going
to kinda summarize the presentation today and go over some of the
similarities between MET and MESP, so both are considered 529
qualified tuition programs. You are also able to take state income tax deductions
on contributions between the two programs, also earnings grow tax-free
meaning if you use the funds for higher education expenses they also come out
tax-free. Super low-cost no commissions also, they are transferable to immediate
family members, usually ranged to about first cousin. The funds are the
contributions are funded with after-tax dollars, meaning you pay tax upfront and
that money going in and if the funds are used for higher education expenses down
the road they come out tax-free. There are multiple ways to make contributions;
you can set up payroll direct deposit, automatic Clearing House contributions,
or directly from your bank, you can simply mail in checks if you wish. A lot
of people will ask the question which should they use? Which one’s better than
the other? And the answer is neither, they are both great programs, and can be used
together or separately, you have a choice. In order to use both together the
maximum you can have in Michigan 529 plans is $500,000. When it comes down to filing for financial aid, the funds, or the accounts, are
considered or recognized as parental assets, not student assets. And also
people keep continuing to ask if they have currently out of state 529
plans, can they roll them over into either a MET or MESP?
And the answer is yes. If you are currently investing in a out of state
529 plan or working with a financial advisor, you can certainly roll those funds into a Michigan 529 plan. Some
of the things you may be missing out on would be the state income tax deductions,
so just keep in mind that if you would like to rollover or be in the Michigan
plan as a michigan resident you certainly can do so. So for more
information don’t hesitate to contact us the MET program is open from 8 a.m. to 5
p.m. and you can actually visit their website at setwithmet.com and enroll
directly on their website, or you can contact them directly at 1-800MET4KID or contact the direct line at (517)335-4767. Now for MESP we do have two financial consultants in the State
of Michigan we do have a colleague Jenni Euler located in Southfield, Michigan, and
you can contact her with our contact information there, and myself Salvus Allo
I am located in East Lansing, Michigan and my contact information is below
there and if you can’t reach us we do have a call center. They are located in
Charlotte, North Carolina and Denver, Colorado and they are open 8 a.m. to 8
p.m. Eastern Time so if you get home from work and you
know you missed you missed us at the office you can certainly call our call
center to get more information, get questions answered, and so forth. So with that today, we’re going to end our presentation with one of our favorite
quotes. “Education is the most powerful weapon which you can change the world”
written by Nelson Mandela, so we’d like to thank you for coming out and
actually listening to our presentation today. If you have any questions please
feel free to reach out to us directly we’re more than happy to help with
absolutely anything that you can think of. Thank you and have a great rest of
your day. TIAA and MESP
legal disclosures to learn more about the michigan education savings program,
its investment objectives, tax benefits, risks, and costs please see the
disclosure booklet at misaves.com read it carefully check with your home state to
learn if it offers tax or other benefits such as financial aid, scholarship funds,
or protection from creditors for investing
in its own 529 plan. Consult your legal or tax professional for tax
advice, including the impact on new federal tax changes, investments in the
plan are neither insured nor guaranteed and there is a risk of investment loss
if the funds aren’t used for qualified higher education expenses a 10% penalty
tax on earnings as well as the federal and state income taxes may apply.
tiaa-cref individual and institutional services LLC member of finra NS IPC
distributor underwriter for the michigan education savings program

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