- Tax Benefits and Estate Planning
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What to Start Thinking About
A college education is one of the most valuable gifts you can give your grandchildren. But with money going towards retirement, health care costs, assisted living or travel, it can be easily put aside.
CollegeInvest can easily help you get started with a 529 college savings plan , step-by-step.
1. Define your savings goals.
The fastest way to get somewhere is to know where you’re going!
Some grandparents will save a percentage of their income for a grandchild’s college each month (just as they do for retirement).
Others have a lump sum in mind that they’d like to give to each grandchild.
By determining how much you’d like to save, you can plan the best way to save.
Use our College Savings Calculators.
2. What is your time horizon?
Are you invited to a baby shower? Or a graduation party? Most grandchildren enter college around age 18. Depending on how old your grandchild is, you may have more or less time to reach your goals. Determining how long you have to save will influence how much you save and the best savings solutions for you.
3. Determine how much can you can save.
By examining how you save, you can determine how much you can save. Can you save the same amount each month or will it fluctuate? Do you have a windfall you’re looking to invest? Have you recently paid off a loan (like a mortgage) and now want to put away that money for your grandchildren’s education?
Use this personalized College Savings Planner report.
4. Assess your risk tolerance.
Do you want help making investment decisions or make your own choices? Are you willing to take risks, or would you rather play it safe? By figuring out your risk tolerance, you can better determine the asset allocation that’s right for you.
Complete the survey to determine your investor temperament and risk tolerance.