Investment Updates
Funding College Savings Plans For A Grandchild
Published Wednesday, July 22, 2009 at: 7:00 AM EDT
Let’s say you’ve managed to reach retirement in great financial shape. Your home is paid for, you have plenty of money available to travel and enjoy your hobbies, and you’ve accumulated enough funds to provide security for the rest of your years. What’s more, your children are out on their own and doing reasonably well. It may seem as if you’ve addressed all of your major financial obligations. Chances are, however, that your children could still use your assistance, especially when it comes time to pay for their offspring’s college education.
According to the College Board, the average cost of tuition and fees continues to outpace inflation by a considerable margin. It is tough even to guess how much college will cost by the time your grandchildren matriculate.
But if you’d like to help with that major future expense, you don’t have to wait until the tuition bills come due. You can set up a Section 529 college savings plan now that will pay some, most, or all of a grandchild’s education costs. Every state offers these plans, and most are open to non-residents as well.
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