Description

Summary

In this conversation, Mike and Amy discuss the importance of college savings, particularly through 529 plans. They explore various aspects of education funding, including the impact of student loans, how to determine the right amount to save, the tax advantages of 529 accounts, and what expenses can be covered. They also address concerns about what happens to 529 funds if a child does not attend college, the role of grandparents in contributing to these plans, and how to choose the right 529 plan for individual needs.

Takeaways

• College savings is a significant financial goal for families.
• Starting to save early is crucial for education funding.
• 529 accounts offer tax-free growth for education expenses.
• Qualified expenses for 529 withdrawals include tuition, room, and board.
• Unused 529 funds can be transferred to other family members.
• Grandparents can contribute to 529 plans without affecting financial aid.
• Choosing the right 529 plan involves comparing fees and investment options.
• State tax advantages can influence the choice of a 529 plan.
• Understanding the rules around 529 withdrawals is essential for maximizing benefits.
• It's important to stay informed about changes in education funding policies.

Chapters

00:00 Introduction to College Savings and 529 Plans

03:13 Understanding Student Loans and Their Impact

06:13 Determining the Right Amount to Save for Education

09:18 Tax Advantages of 529 Plans

12:32 Qualified Expenses Covered by 529 Plans

15:15 Options for Unused 529 Funds

18:25 Contributions from Grandparents and Other Relatives

21:20 Choosing the Right 529 Plan

Operation Retirement Readiness:  www.operationretirementreadiness.com

Schedule a consultation with Mike: https://nextmissionfinancialplanning.com/contact/   

Schedule a consultation with Amy: https://www.instarfp.com/contact

Disclaimer: This podcast represents the views of the hosts and any guests. It is for informational purposes only and should not be considered tax, financial, or legal advice. All information is regarded to be from reliable sources. The hosts are not responsible for any losses, damages, or liabilities that may arise from the use of this podcast. This podcast is not intended to replace professional, individualized advice.