#66 Real Client Stories: The Power of 529 College Savings Accounts
Co-hosts Emily and Amanda highlight the real-world benefits and dispel some common myths around college savings plans. Did you know only about 35% of eligible families actually use college savings vehicles like 529s?
Here are three key takeaways:
• Start Early, But Don’t Stress If You’re Late: You can open a 529 plan at any time—even before your child is born. But don’t let the “ideal” timeline discourage you: starting now still makes a difference, even if your child is older.
• 529s Are More Flexible Than You Think: Funds can be used for various educational expenses, including community college, trade schools, and even rolled over into a Roth IRA under certain conditions—so you’re not boxed in if your child’s path changes.
• Compounding and Tax Savings Add Up: Real-life examples show that even moderate contributions can lead to big tax-free savings thanks to compounding—some clients saved over $30,000 towards college costs, reducing financial (and emotional) stress for their families. Anything you see on social media—“hacks” or otherwise—check with a pro, and don’t delay getting started. Even small, consistent contributions today can make a huge difference later.