Ask Terry Questions Investing for Grandchild College

Investing for Grandchild College

By Terry Savage on August 29, 2019 | College Savings / Student Loans

My granddaughter just turned one. I would like to invest in something that would guarantee a certain amount for her when she turns 18. My father bought what he called zero coupon bonds for my children 30 years ago. He invested around $10,000 and after 17 or 18 years the bonds were guaranteed and worth $50,000 for my children . Are there any similar type investments currently available? Thanks so much for any advice.

Terry Says

You can’t do that trick again, because interest rates are so low now!  It wouldn’t give you any real return.  Instead consider a 529 College Savings Plan where all the money grows tax-free for college.  No guarantees, but you do have quite a few years to keep investing, even in a market decline.  Go to to learn more.  I invested in the Vanguard-managed 529 plan for my granddaughters, using the “age-based” plan.  You’ll understand that after you do a bit of homework!

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