Grandkids gift
My husband wants to put money away for our twin grandbabies(probably our only). My daughter has established an account for the babies that I contribute to. My husband doesn’t think that is a solid game plan. He wants something that we have control over. Do you have any recommendations on what we can do for them? Thank you
Terry Says
Yes open a 529 College Savings Plan, with yourselves as custodian. the money grows tax-free over the years to be used for college. If you live in Ilinois, you get a tax deduction on state taxes for your contribution. Go to www.BrightStart.com to apply. You can always add more money on birthdays, holidays etc. The money can be used for any college, in any state, for any of your grandchildren.
If you live outside Illinois, check the ratings for your state plan at www.SavingforCollege.com. Or as a default go to Vanguard.com and open an account in the 529 Plan they manage. It is highly rated and low cost.
In either plan, make things simple by choosing an “age-based” option, where they decide on appropriate risk of investments based on the child’s age and time until college.
