Paying for a Child’s Education? How about a 529 Savings Account?
Do you save for your child’s education? No? Why not? Open a 529 Savings Account to start building financial stability for your children’s education now.
Part of what is important to understand when saving for retirement, is how to save for interim life goals in the process. As many of you are family-focused and family oriented, it is important to think about how to invest for your child’s college education. If you have several children, then it is that much more pressing of an issue.
Do not worry; it is not as difficult as it sounds. There are many ways in which to invest smartly, easily, and with the long-term investment in mind. These issues do not take care of themselves, but there are certainly great ways for parents to solve these issues without getting overly confused.
As a loving parent and grandparent, it is important to note that you can prepare for your child’s future by opening a 529 Education Savings Account now and shielding some of your money this way. If you have children or grandchildren, you know that one of the biggest expenses in their future will be their education. As an incentive to help parents and others save for their children’s educational expenses, the Federal government created the 529 Education Savings Accounts (ESA).
One of the great features of the ESA is that almost anyone can contribute to the account to help the student. This means that not only parents, but grandparents, uncles, aunts or friends can contribute to an ESA.
Unlike other educational savings plans that restrict the use of the funds to higher education, an ESA can be used for both elementary and secondary education as well as college education. When the account is used for educational expenses, the funds are tax-free.
Since the funds can be used to help pay for elementary and secondary educational expense, as well as college, it is wise to open your account as soon as possible. What a great way to welcome a new member to the family and to begin preparing for their future.
Like any non-taxed account, by starting early and putting the funds to work, after eighteen years, you would have a significantly greater amount to apply to the student’s educational expenses then what you might save in a taxable account. The benefits of compound interest are limitless.
Implementing these principles as part of a well-rounded financial strategy and investment portfolio will help give stability to your long-term financial plans. It will also help guarantee that your children will have more time to focus on their education then on how to pay for it!
Paul R. Whitacre is a managing partner at WealthyIRA.com. Our vision is to teach others to invest their IRAs and 401(k)s in the deepest discounted Real Estate in decades. Check out more at our http://www.WealthyIRA.com blog and follow us on Twitter at http://www.Twitter.com/WealthyIRADistributed by http://www.ContentCrooner.com
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