Investing for a grandchild
I’m interested in setting up an account for my 1 month old grandchild. What suggestions would you make and what are the pros and cons of the different options? I’m looking to make an initial investment of $5,000.
Terry Says
You should open a 529 college savings account for your grandchild. All the money will grow tax free for college, and you can add more on birthdays and holidays. It’s a great gift!
Read this article.
Your state may offer a small break on state income taxes for your contribution. (Illinois does.) If you are an Illinois resident go to www.BrightStartSavings.com to open the account.
If from another state, check your state’s plan at www.SavingforCollege.com.