Message Font: Serif | Sans-Serif
No. of Recommendations: 0
You know of state 529 plan I suppose. You can open one with relatively small amounts of money. We did this with $500 for two of our great grandchildren and $1000 for the other two. Our state is NC which has many opportunities and we use Vanguard funds that come in growth, moderate growth and "safe." Furthermore we get to deduct the money we donate from our income for NC taxes.

We didn't have 529 plans for the grandchildren but like you took out custodial accounts. As I recall at the age of 21, custodial accounts are given to the child. In the end, only one of the grandchildren used the money for college, two used the money for sports camps (they were athletes but neither ended up having a career in sports), and one just frittered it away (I think). All have large college loans in addition that they are paying off as well as they can. The granddaughter is unemployed at present.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.