Every grandparent loves to spoil their grandchildren. After all, that is a rite of passage for grandparents. Showering them with presents or going on special trips are just some of the ways we show our love and affection for the next generation. But what is the most important thing we can do for them? How about helping ensure they have a good education, hopefully leading to a secure financial future where they can provide for their own children and grandchildren. Sure, it may not be as fun as going to the beach for the weekend but it is something that will have a lasting impact on your grandchild’s life. How can you effectively save for college though?
More on 529 Plans
529 Plans are great way to accomplish this and starting early can have a significant impact on the value you can accumulate over time. If you invest $3,000 per year starting when your grandchildren are born, and if we assume a return profile that reduces risk along the way, you could amass as much as $90,000 before their 18th birthday. That would be enough to contribute $14,000 per semester for 4 years towards their education.
Table assumes a decreasing risk-return profile as you get closer to making withdrawals from the plan.
Contact us today to learn more about setting up a 529 Plan that’s right for you.
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The information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. The material has been prepared for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results. Securities offered through FinTrust Brokerage Services, LLC