Grandchild savings
Hi, Terry, my wife and I agreed to set aside 3500.00 dollars for our new and first grandson, we use Fidelity investments, my thinking is a Fidelity S&P index fund, not a college savings, but we thought that something for 30 years down the road he would inherit at that age, I’m looking at it as a nice surprise when we are gone, I am 60 years old plumber working for the city of Chicago, and I will contribute to this from time to time we have almost 950,00 0 in savings so it won’t break us , I will retire at 65 with a decent pension from the city , is this a good investment idea?
Terry Says
No, this is the wrong way to save for college! You need to use a 529 College Savings Plan — where all the money will grow and come out to be used for college expenses TAX-FREE! And since you are an Illinois resident, you get a tax deduction for up to $10,000 of contributions to the Illinois Bright Start plan.
Read this: https://www.terrysavage.com/529-plans-even-better-now-2/
Then follow this link to open an account at BrightStart.
