We all want the best for the little ones in our life. Why not start early with a 529 plan for college? Investing a few hundred dollars a year for 18 years is a lot easier than waiting until your child is in high school to figure out how to pay for higher education.
For example, if you start at birth with a $1,000 opening balance, and contribute $100 per month for 18 years, and earn a conservative 5% annual return, you should accumulate $37,853 vs. $34,944 in a taxable savings account. Of course, a higher return, or adding money from friends and family over the years will greatly add to the amount. Get the grandparents on-board for another $100 per month and you could accumulate $73,300 vs. $67,773 in a taxable savings account. This won’t exactly pay for college, but it is an example that shows you can target a needed amount and save for that amount in a strategic manner
Working with a Certified Financial Planner™ you can target a specific college or university and determine a customized savings plan for your child. Your planner can also clear-up misinformation about 529 plans such as the erroneous belief that beneficiaries receive the funds in the account at age of consent. Or, that a 529 plan is a “use it or lose it” investment vehicle. Not true.
As an independent Certified Financial Planner™, I can help you decide how much to set aside for your child’s education. In addition, I can help you make investment decisions and help you layout a plan for how to pay for higher education. Contact me and let’s get started! #talktometuesday #education #Hireaplanner #529plan #savings