You’ve decided to start saving for your child or grandchild’s college education! First, you considered the type of account you wanted to use. If you’re still trying to decide please see some of our videos that may help uncover the details for all the options you have whether it be a Custodial Account, 529 Savings, or529 Prepaid Tuition Plan.
How do you respond to the different factors that affect your college investment choices. In addition to choosing the right investments so your funds grow, there are a couple of other things to consider. Timing and fees are two other factors that can affect the overall benefit you receive from saving toward college investment. Let’s discuss these two in more detail!
What is a 529 plan? And how is it different from most other types of accounts? First of all, anyone can open an account, regardless of your income or age.
With an IRA or 401(k) you are limited to the amount you can put into an account. With a 529 plan there is no annual limit to how much you can contribute, other than any gifting limitations. But even with the gift limits you can still contribute an unlimited amount. However, there is a limit to how big your 529 account can get.
Following along with the blogs of financial advisors is a great way to access valuable, educational information about finance — and it doesn’t cost you a thing! Our financial planners love to share their knowledge and help everyone regardless of age or assets.