It seems like just yesterday that our daughter was born (15 years ago, but who is counting). Like good parents, we were preparing for her education and started a 529 Plan and Coverdale Education account.
Over the next few years, we learned the true shortcomings of these traditional educational savings accounts. They could negatively impact her ability to obtain financial aid, had poor investment options and could not be used for unconventional learning.
Since then, we have closed those accounts and transferred the funds to ROTH IRAs and general brokerage accounts (non-retirement accounts). These pro-active savings will avoid the negative impact on her future financial aid and we have unlimited investment options, which is leading to better performance. Most importantly, we can utilize the dollars for her current work study program with our firm (my future replacement in training ;-)).
Contributing $100/mth for 18 years could add up to $46,000 to be put toward an education in whatever form. And $200/mth could be $93,000!
The most important thing is TO SIMPLY GET STARTED!
If you, a family member or friend would like to plan for a child’s future, simply contact our office at 810-655-2129.