Reply to Tax Advantaged things grandparents can do for grandchildren

Forum Index » Money and Finances

Reply to "Tax Advantaged things grandparents can do for grandchildren"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]Seems like they have quite a lot of money. There is no reason to complicate you all's life opening new accounts. If any, learn how they got it and simply continue to invest/preserve the money.
They can continue to give money away to you and siblings and you all will do great. 
Zero reason for 529. It's for the company holding it to make money.[/quote]

Tax advantages.  That money can grow tax free until you use it.  That's 18+ years.  They can continue adding to the 529 yearly, even more than needed, and let it be used for med school/law school/the grandkids own kids 36+ years from now.  All while it grows tax free.  
Now there are Aggregate contribution limits for 529 plans in each state (this ranges from 235k to 550k---note this is not the balance, but the Contributions over time).  But that is easily solved by opening a 2nd 529 in a different state plan.  
There are plenty of good plans with low fees that have good investment options.  Select your own funds, don't do a "my kid will graduate HS in 20XY" plan.  Keep the choices aggressive until they are 14/15.  
[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics