Like many parents, you feel the pressure of saving for the rising cost of your child’s college education, but you’re not sure where to start. With help from an Affinity Plus Investment Representative*, you can get the help you need to start saving in a way that works for you with a 529 Plan.
Designated as an account specifically for higher education, you can set up your child’s 529 Plan with a minimal investment of only $250, or a monthly, automatic deduction from a checking or savings account in the amount of $50. Depending on your situation, the Investment Representative can help you decide which option would be right for you.
A great way for you to start saving for the $250, is to set aside $5.29 each week for one year into a savings account. At the end of the year, you’ll have $275.08 which is enough to open your child’s plan, and get started saving. If you have more than one child, you’ll need to multiply the amount of $5.29 by the number of children you have so that you’re setting aside enough money to open an account for each of them. For example, if you have three children, you should set aside $15.87 (5.29 x 3 = 15.87) each week. Plus, if your first child doesn’t use all of the money in his or her 529, the remaining balance can be transferred to another child in your family, and also could include grandchildren, nieces, nephews, and more.
Receive great benefits when you start your child’s 529 Plan, like:
- Tax deferred growth
- Federal tax free withdrawals for qualified expenses
- Ability to change beneficiaries if needed
- Parent/Account owner has control of funds. This can be anyone who wants to set up an account for your child, like grandparents, aunts and uncles, etc…
- Flexible investment options
- No restrictions on source of contributions—this is a great gift option, because anyone can contribute to your child’s 529 Plan!
- No income limits for contributors
- Generous limits on contribution amounts
- Very flexible distribution options
- Asset allocations can be changed annually
What’s your target number that you would like to reach for your child’s 529 Plan? Whether you want to save $5,000, $10,000, or even $25,000 for your child’s future education needs, an Affinity Plus Investment Representative can help. Contact one today to get started!
*Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, toll-free 800-369-2862. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members. CUNA Brokerage Services, Inc. is a registered broker/dealer in all fifty states of the United States of America. The representative may also be a financial institution employee that accepts deposits on behalf of the financial institution.
**Hypothetical example used for illustrative purposes only. This example does not represent an investment in any particular product. Investments carry no guarantees and when redeemed may be worth more or less than the original investment. Example does not account for any fees or sales charges associated with such an investment. Fees and charges will lower the overall performance of such an investment.