While 529 college savings plans are popular for their tax benefits and flexibility, it’s worth exploring other avenues to give your family more opportunities and variety for saving for your kids’ college education.
Today we are looking at Roth IRAs and real estate which offer unique benefits, such as tax-free growth and potential rental income, that could provide more flexibility and financial stability for your family’s future beyond college for your kids.
Join me in exploring how you can diversify your savings approach and ensure a bright future for your children.
Anna’s Takeaways:
- Intro (00:00)
- 529 College Savings Plans Drawbacks (04:03)
- Using Roth Iras & Real Estate For College Savings (08:14)
- Alternative Ways To Fund College Education (12:44)
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Website & Links mentioned:
- Websites Where You Can Open Accounts: Vanguard, Fidelity, Charles Schwab.
- #210 – 529 College Savings Plan: Getting Started [Part 1
- #211 – Maximizing 529 Plans: Tax Benefits and Best Practices (Part2)
Transcript
I call call that market risks. Right now we're in an environment where mortgage rates are high interest rates are high in general. So if you liked the strategy, like okay, I love it, I can kind of see the timeline how it will put together for me. But buying something right now may not be the most time smart kind of decisions. But you're you know, at the same time your timeline is running away because your kids are getting older. So I you know, just think about that in context of all the other pieces that you have in your financial plan. So, if I had to sort of conclude for today, I don't dismiss 529 plan, I still want to talk about it, I still think it's a great vehicle, what I do want to highlight for you is that you do not have to save 100% of all of the college cost that you may think you will need to you know, you know, in order to cover expenses for your kids in the 529 college plan, I want you to have alternatives. And if you have resources, right and want to start, I think you should consider definitely looking at Roth IRA, and real estate, by any means piques your interest, or you want to learn a little bit more about the Airbnb arbitrage opportunity, I highly suggest that you look at this from a lens of like, how will this work for us? Do I have time for all of it? And do I have financial resources? So that is all I have for you, my friends today? I'm going to continue exploring this topic because there's a couple more alternatives that I want to cover with you. And just to kind of give you ideas and pique your interest in having some diversification to your savings. Because I mean, a lot of times clients are like, Okay, I have these sort of standard accounts and stare at things. What else can I do? So I'm giving you some of this what else today? Let me know what you think. Let me know what you are doing as an alternative. Maybe I haven't covered it yet. Or maybe I just need to see what what creative minds are out there on this podcast. Thanks so much for tuning in. By the way, if you found this useful, please make sure that you are subscribed. So next time when an episode is released. You're going to be notified shared with a friend I would love for you to do that. And then the last but not least, remember you are the bosses of your own money.
