Thank you so much for this! I have been saving for my son's college using a NY 529 account since he was two weeks old. He is 12 now, so still a ways to go but I already saved so much and earned interest. I am so grateful you mentioned the Roth IRA. I always joke that my son might get an athletic scholarship. It's good to know you can roll over 35K into a Roth IRA. My friend also advised me to save the unused money for a possible grandchild one day :)
Thank you for sharing this! It’s too late for this information to benefit my children directly, but I can teach them and my grandchildren will be far ahead of us.
My dad got me and my brother a 529 plan right after we were born. It was enough to pay for 4 years of college in the late 90s but only covered a year or two in the 2020s (started college in 2019). I am extremely glad my father did this, but it's crazy how much more expensive college is nowadays.
Ok Vivian, now you need to pls share what those of us do who didn't know to start this pre-kid and already have kids now and have no 529 plan.... thanks girlie!!
The only problem is for lower earning parents. The school may reduce part or all of potential financial aid “for need” when they see what’s in the 529 Plan.
We do this, too. Two other pieces of advice a couple of wise mothers told me 1. People spend so much money and time on children’s sports and dance/cheer. Then, don’t spend any money getting tutoring for their kids. The tutoring money has a higher ROI for 98% of the families. Everyone has to read and do math for the rest of their lives. Prioritize your budget with that in mind. 2. Your kids are never going to cost you less than they do today, at least until they are self sufficient adults.
This is very true. My mom, recently divorced and broke, took out a credit card, and put 8k of tutoring on it. I know- a lot. But I was sick with MS and was behind because I missed a lot of school. I ended up getting a perfect score on the Reading section and received a full scholarship to a top university. That uni costs 60k+ A YEAR. Worth it? Heck yes! They even paid for my phone and meals!
@@myinmyin1997 I think you misunderstood her point. She didn’t say not to do sports or not to have fun, but to budget for academic help, too. My kids have dyslexia, so it’s in our budget to help them academically. They still play hockey and horseback riding because they enjoy it, not because we are expecting either to end in scholarships.
@@myinmyin1997 also, people aren’t “equipped to do higher level math.” It’s a skill and a way of thinking that can be taught. We focus on growth mindset in our family, not on innate abilities. To believe that people are “equipped to do higher level math” or not, is the “horrific mentality.”
I was under the impression that the child had to be born and have a social security number in order to have a 529 account. I guess I'm wrong. It's been known to happen.
Could I do this for a niece or nephew as a surprise method of saving for their retirement rather than their education? What happens if you die as the beneficiary though before the money gets transferred? And do you need multiple 529 plans for multiple nephews/nieces? Where do I read more about this scenario?
You must know the child’s SSN. I would imagine that theoretically yes. Each child must have a separate account, yes. If there is no designated beneficiary, my guess is that it would go to probate court. You never want that. Put a beneficiary!!! Contact your tax accountant or select a 529 plan and contact them to walk you through scenarios. Different states have different 529 plans.
It seems like 529 is based on states. What if you move around and aren't in the state at the time to cash it out? Would they have to go to school in that state and pay out of state prices? Can you change the state like you can change beneficiary? Please make a video on this!
What state you are in doesn’t matter for a 529 plan. In fact, you live in Texas and invest in the Wisconsin plan - just an example. The 529 plan can be used for public or private colleges and universities. It can be used for most trade schools, too. Prepaid tuition ties you to the state you buy it in. Not all states offer that and prepaid tuition isn’t the same as a 529 plan.
it doesn't matter what state you choose. You don't need to choose your own state. I live in CA and have 529s in NY and Ohio, bc those state's 529s have great track records.
Hey mam, I am looking for a creator who want their video to be edited in professional manner, if you want a good video editor i would be love to join you,
@@rainbeauxunicorn5237 agreed. They can’t plan for the future because of living above their means. Poor people are always trying to burn money in the present with no regards for their future
Thank you so much for this! I have been saving for my son's college using a NY 529 account since he was two weeks old. He is 12 now, so still a ways to go but I already saved so much and earned interest. I am so grateful you mentioned the Roth IRA. I always joke that my son might get an athletic scholarship. It's good to know you can roll over 35K into a Roth IRA. My friend also advised me to save the unused money for a possible grandchild one day :)
Thank you for sharing this! It’s too late for this information to benefit my children directly, but I can teach them and my grandchildren will be far ahead of us.
My dad got me and my brother a 529 plan right after we were born. It was enough to pay for 4 years of college in the late 90s but only covered a year or two in the 2020s (started college in 2019). I am extremely glad my father did this, but it's crazy how much more expensive college is nowadays.
LOVE, LOVE, LOVE YOU! ❤ Keep bringing the "unknown saving" and giving the scary "lay-person terminology" with easy explanations.
This is a gem. Thanks so much for all you do
Ok Vivian, now you need to pls share what those of us do who didn't know to start this pre-kid and already have kids now and have no 529 plan.... thanks girlie!!
The only problem is for lower earning parents. The school may reduce part or all of potential financial aid “for need” when they see what’s in the 529 Plan.
Yep I opened a 529 plan as soon as I found out I was pregnant. But I didn’t know you could roll over $35K to a Roth IRA. Thanks for the tip!
We do this, too.
Two other pieces of advice a couple of wise mothers told me
1. People spend so much money and time on children’s sports and dance/cheer. Then, don’t spend any money getting tutoring for their kids. The tutoring money has a higher ROI for 98% of the families. Everyone has to read and do math for the rest of their lives. Prioritize your budget with that in mind.
2. Your kids are never going to cost you less than they do today, at least until they are self sufficient adults.
This is very true. My mom, recently divorced and broke, took out a credit card, and put 8k of tutoring on it. I know- a lot. But I was sick with MS and was behind because I missed a lot of school. I ended up getting a perfect score on the Reading section and received a full scholarship to a top university. That uni costs 60k+ A YEAR. Worth it? Heck yes! They even paid for my phone and meals!
@@delia_watercolorsthat's amazing! Best investment your mom did!
@@myinmyin1997 I think you misunderstood her point. She didn’t say not to do sports or not to have fun, but to budget for academic help, too. My kids have dyslexia, so it’s in our budget to help them academically. They still play hockey and horseback riding because they enjoy it, not because we are expecting either to end in scholarships.
@@myinmyin1997 also, people aren’t “equipped to do higher level math.” It’s a skill and a way of thinking that can be taught. We focus on growth mindset in our family, not on innate abilities. To believe that people are “equipped to do higher level math” or not, is the “horrific mentality.”
What if you have one of these accounts, but no kids?
You can use it for your own educational costs if you ever decided to go back to school!
Is there anything similar that doesn't require them to go to college? Not everyone needs or wants to.
RESP for Canada
I was under the impression that the child had to be born and have a social security number in order to have a 529 account. I guess I'm wrong. It's been known to happen.
Thats why she set herself as the beneficiary for now! She'll switch it over to the child when it comes into existence.
Would it be better to invest in a 529 or index fund for investiments. I understand ill be taxed on index fund, but i heard returns are higher.
How much supposed to be the minimum contribution?
Could I do this for a niece or nephew as a surprise method of saving for their retirement rather than their education? What happens if you die as the beneficiary though before the money gets transferred? And do you need multiple 529 plans for multiple nephews/nieces? Where do I read more about this scenario?
You must know the child’s SSN. I would imagine that theoretically yes. Each child must have a separate account, yes. If there is no designated beneficiary, my guess is that it would go to probate court. You never want that. Put a beneficiary!!! Contact your tax accountant or select a 529 plan and contact them to walk you through scenarios. Different states have different 529 plans.
@@ElleMonzon Thanks for the info! :)
Can you only roll over 35k total to the roth? Or is it annual?
You the best! I am going to ask my FĂ
Ehew what???? Didn't know about the tax code change. Can I do it if my kid does not make it big but doesn't use it all? 🤔
Love that
It seems like 529 is based on states. What if you move around and aren't in the state at the time to cash it out? Would they have to go to school in that state and pay out of state prices? Can you change the state like you can change beneficiary? Please make a video on this!
try going to the 529 website; they have a lot of FAQ. I'm nearly certain that you can roll over from state to state.
What state you are in doesn’t matter for a 529 plan. In fact, you live in Texas and invest in the Wisconsin plan - just an example. The 529 plan can be used for public or private colleges and universities. It can be used for most trade schools, too.
Prepaid tuition ties you to the state you buy it in. Not all states offer that and prepaid tuition isn’t the same as a 529 plan.
it doesn't matter what state you choose. You don't need to choose your own state. I live in CA and have 529s in NY and Ohio, bc those state's 529s have great track records.
What if you never have a kid? Does that mean you can use the money in 592 yourself since you are still the beneficiary?
Yes! Adults can use 529's as well.
Do you just go to the bank to open up this account?
Is this still good to do this, even if your kid is already older like 10?
Absolutely! Its never too late to start. Even 8 years of investment/interest gains is better than nothing.
How do I open a 529 for my grandchild?
A financial advisor can help you do that.
@@texassalt8999 thank you
What if your kids are already born
Hey mam, I am looking for a creator who want their video to be edited in professional manner, if you want a good video editor i would be love to join you,
Poor people only care about themselves and refuse to help their kids
Vast generalization
@@Username0467 yes. This generalization applies to the vast majority of Americans who are impoverished
Gross misinterpretation. It’s hard to plan for a future when you struggle to survive on a daily bases. Maslow’s Hierarchy of Needs…
@@rainbeauxunicorn5237 agreed. They can’t plan for the future because of living above their means.
Poor people are always trying to burn money in the present with no regards for their future
@@ngf5077cost of living is rising faster than the pay wage. Tf u on about? People gotta work 2 jobs just to make rent. Ignorant
I will subscribe to this channel if you stop calling yourself a “rich BFF” because it’s just SO cringey I can’t bear it 😅