What to get and how much money to give

“Hopefully they will become more motivated once they see the results.” He said.

Until the child turns 18, you will retain full control of the IRA’s assets and investment decisions. As adults, they can assume control of the funds and start withdrawing without penalties for qualifying expenses.

To exploreOlder Americans Month events begin Friday in Gwinnett

529 education savings plan

College is expensive. And many students eventually have to turn to loans that can take years to pay off. But there is a better way.

By starting a 529 college savings plan for your grandchild, you can ensure they have the money they need to succeed in the classroom — and after graduation. You can give up to $75,000 per year ($150,000 for couples) and reduce your own taxable income (contributions are considered donations on your taxes).

Your grandchild can use the funds – tax-free – to pay for tuition, room and board, books, and other educational expenses, including apprenticeships.

To exploreSpring Wine Dinner: 6 Things to Do Around Atlanta This Month

Series 1 Savings Bonds

For a rock-solid investment that guarantees money will be available for your offspring for years to come, consider investing in savings bonds, certified financial planner John Scherer told AARP. Backed by the US government, these bonds can be purchased directly from Treasury Direct.

“It’s a safe investment backed by the US government, with a guaranteed rate and an inflation component. If used for college, earnings may be tax-free. He said.

The initial interest rate on Series I Savings Bonds is 9.62% until October 2022.

To exploreCheck back here for updates on future Aging in Atlanta sections throughout the year


Source link