These days, saving for your child’s education seems far away in the midst of the current here and now. Some parents may have put saving on hold or put it off for more stable economic times. But children keep growing. Time doesn’t stop. And when the day comes to fund their post-high school education, that preparedness pays off. Literally. There are benefits to staying the course on saving.
When it comes time to use your MOST 529 for your child’s education, there’s nothing like the feeling of knowing you already have a chunk of change. Check out our savings calculator and see what happens when you stay the course as you save for their courses. Even if you have to readjust your contribution for a little while, just don’t stop altogether.
Savings Calculator
Keep saving and you’ll get more in return – tax returns, to be exact. Parents who max out the tax benefits of their MOST 529 can get $864 in annual tax savings (max savings calculated based on $16,000 maximum state tax deductions for contributions, married filing jointly, and $56,855 household income). Calculate an estimate for your state tax deduction this year.
Tax Deduction Calculator
You might have a little one and think “We have time to start saving. Maybe next year.” But why wait? It goes without saying that the longer you keep your money invested, the more it can potentially grow.
See What We Mean
If you're a college saver, you may have less cause to be anxious.
That's because if you choose one of the three 529 plan age-based investment options (Conservative, Moderate, or Aggressive), you'll get a portfolio designed specifically to help you reduce your investing risk. These options gradually shift from aggressive to conservative as your child grows older and closer to college age, so your risk is dialed back automatically—an especially calming factor as tuition bills come due.
There's no cause for panic. Stock downturns are normal, and most investors will endure several of them.
