529 vs minors account in stock market
I have a newborn grand daughter and I would like to give 5,000. to her for future needs. I am not sure what college will even look like in 18 years or if she will even attend, so I am not sure if a 529 is appropriate or would it be better for me to open a custodial account with Vanguard. Thank you
Terry Says
If she does attend college, a 529 plan will help. If she doesn’t they can always withdraw the money paying ordinary income taxes. Do the 529 plan — because it will all grow tax-free for college.
And money in her name in a custodial account will weigh very heavily against the family if the family applies for financial aid.
