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I was telling my friend about the beauty of Roth-IRA and the option of using those funds for her kids college if necessary.

My friend is not sure because another couple she knows told her about the NY State College Savings Program.

It's tax-free for NY State Taxes, and you can put away 10,000 a year, which is taken off the top of your income. BUT
I called the program and ask about the investment vehicles they are using.
For a child born in 1992 they invest 45% in stocks and 55% in Bonds. The parent cannot control how it is invested. In 1999 the fund had a total return of 11.40, well below the S&P 500.

Yet the tax benefits are tempting. (though they do not help with Federal Tax.

So, Which is better? How can we compare those two options?
I'd appreciate any clues.

Clueless, Ora.
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