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Hi
4 months back my wife and i were blessed with a beautiful daughter.

we live in CA

i am thinking of starting a college savings 529 plan right away.

we have close to $ 20,000 set aside to invest in a college savings plan.

here are my questions-

1) are there any tax advantages by putting aside money from paychecks rather than use after tax money that is saved ? is there a provision similar to 401 K ?
2) are there websites that list the average cost of expenses by state or by top ranked schools adjusted for inflation ? if i know how much money will be needed in future, then i can discount it back using the annual compounding rate of lets say a Treasury bond + yield premium to arrive at how much seed money i will need to putin (if not right away)
3) i read that there are state tax benefits from CA from link below.
what are advantages or disadv in investing in CA or outside of CA ?

http://clarkhoward.com/topics/529_guide.html
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