TLDR; my mother-in-law wants to start a 529 account for my son, but I work in higher education (reduced or free tuition later), and I also already have an investment account where I’m saving for him.
Has anyone had this situation, and what kind of recommendation do you have for an investment vehicle that would give her the tax benefit, but give him the freedom to use the money anywhere.
Hi Everyone,
Since my son was born I began investing $350 a month in SFLNX for him. He’s under 2.
For tax purposes, my mother-in-law said her financial advisor suggested starting a 529 for him. She mentioned it to us a year ago, but I told her I had already began investing for him, and even though I know the uses for a 529 were expanded within the last year with the, I’d prefer to have everything within the ROTH IRA that I’m doing right now so that it can continue to compound.
Notes:
📌Even though I’ve worked in higher education my whole career, I’m not going to assume he’ll take a traditional educational path.
📌Because I work in higher education he’ll most likely have reduced or free tuition whether I’m at a community college or a 4yr.
📌 My spouse and I have diversified investments, but I don’t want to thin things out for him, I’d rather have nice compounded savings for when he is old enough.
📌 I do understand that this account could also be used to fund private education/support in his primary and secondary years up to $10k, which could be beneficial. We live in NC.
Thank you for your recommendations!