College Ave Student Loans Reddit – 529 Plan: Grow WEALTH for kids and LOWER your own taxes
College Ave Student Loans Reddit – How to Choose
A 529 Plan lets you lower your taxable income by putting money in an investment fund for your (or someone else’s) kids. Help yourself and the kids at the same time!
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0:00 – Intro
0:15 – What is a 529 Plan?
1:00 – Similar to an IRA, but the beneficiary can use the money for education
1:42 – You can change the beneficiary any time
2:25 – When opening the account, you can contribute up to 5 years worth ($75k)
3:23 – Can you invest it? Yes!
3:50 – This decreases your taxable income
4:08 – Example: a couple saves millions for their kids and lowers their taxes
4:58 – It’s like a trust fund for your kids
5:30 – In some states it can be used to pay off student debt
5:44 – Can also be used towards private school
6:13 – Special exemption: if your kid gets a scholarship, they can pull that amount without penalty
7:46 – “But I don’t want to get hit with higher capital gains taxes!”
8:44 – You only pay income taxes on the GAINS!
9:26 – Check with a financial advisor! This all depends on where you live
10:05 – Most importantly, this can help you get started if you don’t know how to pay for your kid’s college
Investing and trading are two different beasts. Please do your own research and due diligence before buying or selling stocks, options, forex or equities. These are opinions only, please make financial decisions on your own. Personal Finance is important!
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