Should my child invest in a 529 plan?

In general terms, an 529 investment strategy by age involves more aggressive fund allocation when your child is younger, and shifts to a more conservative approach as they get closer to college age. Parents should review their 529 plan investment options periodically to make sure they are still on track to meet their goals.

How much money can a 529 account save a child?

If you open a 529 account when your child is born, make monthly contributions of $250, and follow a moderate-risk approach, according to our 529 savings calculator, you can expect to have around $100,000 to $120,000 in college savings by the time they reach 18.

What is a 529 plan?

A 529 plan is a tax-advantaged savings account that’s designed to help you save for education costs. Also known as qualified tuition plans, 529 plans are offered by every state and Washington, D.C., as well as some educational institutions.