New Grand Baby? Here’s A Gift With Lifetime Impact

Grandparent with baby

So many friends and neighbors are becoming grandparents, and they tell me it’s a lot more fun than parenting!

I can believe it. So if you are a grandparent, congratulations! Enjoy every moment of it.

Part of being a grandparent is wanting to do whatever is in your power to make life a little bit easier for those younger generations.

One way you can make a gift with lasting impact is to consider funding a 529 college savings account for the new baby.

Some of you may already be familiar with 529 plans. As a quick recap, 529 accounts are considered by most financial planners as the gold standard of college savings plans. They are accounts that you fund and then sit back and watch as they grow tax-free until your grandchild uses the funds for college, trade school, or a number of other education options.

They are super easy to use. Basically, you just add the contributions and the plan takes care of the rest. These plans are incredibly flexible. The funds can be used tax-free in-state, out-of-state, at public schools, at private schools, transferred to other family members, and so on. My son used his account for pilot training and flight school. For most families, 529 plans are much better than other savings options that eat into financial aid and lose ground every year to inflation and income taxes.

You can use the 529 plan offered by your state or any other state. All you need to get started is the name of your grandchild and their Social Security number. A small contribution gets the plan open.

If you live in Florida like I do, take a look as well at the Florida Prepaid College Plan. It locks in the price of today’s tuition so it keeps up with inflation. The plan is guaranteed by the state of Florida so you can never lose your money. It’s a good foundation for your grandchild’s overall college savings strategy.

College continues to be a great investment that can nearly double your grandchild’s lifetime income. So take a look at gifting your grandchild a gift with lasting impact that keeps giving year after year.

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