It's the annual gift that generally is bigger than you want to give... TAXES!
Do you:
-dread the amount of taxes you'll pay next year
-hesitate to invest because of tax burdens it could cause
-max out your 401(k), Roth IRA, and/or deductible or non-deductible IRA
-contribute to a non retirement investment account
-look for ways to save more and not increase your tax burden or
-have children, grandchildren, or other friends/relatives who you support(or want to help support)?
Well my friend, a 529 might just be the thing you're looking for. Tax free growth potential (if used for qualifying education expenses), control over the assets, ability to change the beneficiary of the funds and a high contribution limit with no earned income considerations. It's a place to invest monies that often goes overlooked with regards to investing larger sums of money (a relative term but could mean $100,000 plus in contributions depending on the plan).
Obviously, a good time to look at a 529 is at the birth of a child and/or for consideration by anyone you'd like to help who is planning for education expenses in the future.
Please reach out to us if you'd like to talk more about these subjects and how they might pertain to you.
On a related note: my wife, Kerri, and I on July 16 just welcomed our third child into the world.
Meet Chloe Elise Jones!
Before investing, investors should carefully consider the investment objectives, risks, charges and expenses of a 529 Plan. This and other information is found in the prospectus which can be obtained from a financial advisor. Please read the prospectus carefully before investing.
This is meant for educational purposes only. It should not be considered investment advice, nor does it constitute a recommendation to take a particular course of action. Please consult with a financial professional regarding your personal situation prior to making any financial related decisions. Waddell & Reed does not offer tax or legal advice.
08/19