Financial Pilgrimage

Is a 529 Plan Worth It? What You Should Consider Before Starting

A 529 plan is an investment account that offers tax-free earnings growth and tax-free withdrawals when the funds are used to pay for qualified educational expenses.

What happens if your child doesn’t attend college or receive a scholarship?  Here are a few reasons why we chose to open 529 plans for our kids.

The ability to provide family or friends the assurance that their generous gift will go into an account specifically for a college education is the most significant benefit of a 529.


Ability to Receive Gifts

Automatic Contributions and Investments


Most 529 plans also allow for direct deposit payroll deductions from your employer. As a result, we put $50 every paycheck into each of our kids’ college funds.

States Offer Tax Deductions or Credits


Be sure to have a conversation with an accredited financial advisor or do your research to find out which will benefit you most.

Tax-Free Growth on Investment Earnings


Tax-free growth is a significant benefit as the growth in earnings can add up by the time you’re ready to ship your kid off to college.

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