I often hear you talk on your show about your daughters. I can tell how proud you are of them.
If I can brag for a second, our daughter is pretty darn special too. She’s 24, has a great job she loves, and is saving money like a bandit.
For college, she started a community college in a great program that fit her like a glove. While in class she met a guest speaker who owns a company in her field. He offered her an internship, then a job, and then paid for her last two years of her degree.
She’s now his right hand man.
So our question is – what do we do with the 529 plan that we set up for her that still has $62,000 in it?
Can we give it to her for the down payment on a house?
You must be very proud of your daughter – and she of you.
You have a number of options for your 529 plan.
First, keep it as it is. Your daughter may need it later.
Second, take the money out, pay income taxes and penalties – ouch, but you can do it.
Third, leave it as it is and plan on giving it to your daughter as the starter college fund for her daughter.
Last, leave it as it is and (if you need it) take it out yourself in your most senior years when your taxes are likely to be very low.
For now, the message is clear – leave it right where it is.
When you think you’ve reached the decision to move it – call me first and we’ll go over these options again.
If you have questions or comments, please send them to Gene@AskMtM.com