College Savings
Did you know that college savings for your kids or grandkids could significantly increase your net worth? Many people don’t think about it like that, but the extra money will definitely help boost you up until it’s time to actually use those funds.
Once that happens, you can also view it as a transfer of a portion of your net worth towards the young adult that is starting their higher education. You will have helped them gain an advantage in life!
529 are among the most popular and best college saving plans out there as they grow tax-free. Distributions are tax-free too as long as they are used for qualifying educational expenses. Not only that, but you can transfer funds between beneficiaries without penalties or taxes, meaning that you can divide the funds between multiple siblings.
