The ins and outs of investing in college

David Roberts, CPA, shares advice for parents on how to start a college savings fund for your child's college expenses and the best ways of doing so
The Ins And Outs Of Investing For Your Child's College Fund
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The ins and outs of investing in college

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Starting a college fund. The best way to do it, or the time to do it, is yesterday; as soon as possible. I would hope that, if you have a young family, you would think about doing it as soon as you have children. You can use something that is called the 529 Plan. They are for higher education, and you can put in as much as $13,000 per child, per year. There is actually a way to accelerate that. You can put in $65,000 the first year and do what's called an election. You put in $65,000 the first year, and then you don't put anything in for five years. These 529 plans are state by state, so you can look at the state plan and put in as much as $250,000 to $300,000 and it's dictated by the state. They are great savings vehicles. You can go to a website called www.savingforcollege.com. It gives you a lot of information on how to do it and does a comparison from one state to another.

David Roberts, CPA, shares advice for parents on how to start a college savings fund for your child's college expenses and the best ways of doing so

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David Roberts

CPA

David Roberts has five children and lives in Southern California with his wife Cynthia, their dog Lucy, and cat named Cooper. Dave has always singled out being an involved parent as his most important life’s work while managing the job responsibilities of being managing partner of his CPA firm, RBZ, LLP in West Los Angeles.

 

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Transcription: 
Starting a college fund. The best way to do it, or the time to do it, is yesterday; as soon as possible. I would hope that, if you have a young family, you would think about doing it as soon as you have children. You can use something that is called the 529 Plan. They are for higher education, and you can put in as much as $13,000 per child, per year. There is actually a way to accelerate that. You can put in $65,000 the first year and do what's called an election. You put in $65,000 the first year, and then you don't put anything in for five years. These 529 plans are state by state, so you can look at the state plan and put in as much as $250,000 to $300,000 and it's dictated by the state. They are great savings vehicles. You can go to a website called www.savingforcollege.com. It gives you a lot of information on how to do it and does a comparison from one state to another.