Complimentary Resource:
529 Booklet
From the Author
I enjoy writing blog posts for our mailing list -- please sign up! -- but none has had the viral reception of "Front-Loading Your 529." It' s lit up company Slack channels; it's prompted so many DMs and emails. I've even had friends tell me it's circulated in their group chats, shared by people with no discernible connection to my firm. I'm so happy to adapt a few of these related posts into a book.
If you're a parent wanting to save for your child's college, you have access to Coverdell ESA, UTMA / UGMA, fifty states' 529 plans (and many states have more than one 529), private 529, prepaid tuition programs -- and now Trump accounts. This trend towards complexity is only accelerating.
I'm so happy to shine a light on one corner of this universe. And if you're looking for more holistic help with your financial life, please think of me and my firm. We'd love to talk with you.
Caitlyn Driehorst, CEO, RightWise Wealth
Featuring:
This is truly what they mean when they say, “it’s cheaper to be rich than it is to be poor.”
There’s two potential buckets of funding for your child’s college tuition: there’s cash, and then there’s investment gains and tax savings. A lump-sum funding strategy optimizes for the latter, and the dollars associated with its success may shock you
Interestingly, this question of “how can you invest big into a 529?” isn’t constrained by the 529 itself. Instead, the complexity for front-loading 529s comes from “gift tax,” one of the most oddly-named little quirks of becoming a well-off adult. We’ll cover what is gift tax, why you probably shouldn’t be worried and how you can load up your 529 while keeping the paperwork straight.
“What if he gets a scholarship? What if he decides to go to vocational school instead? Or a military academy with no tuition, or a university in Europe which is cheaper? What if I’ve over-funded this 529?” My little son is eight months old, so my husband and I have been asking these questions ourselves. Here are my thoughts as to why funding your child’s 529 is still important.
Helpful calculations and illustrations
Caitlyn to write ****