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July 6, 2020 What's the Best Way to Save for College? The Pros and Cons of 529s vs. UTMA Accounts
by Ingrid Case When Albert Einstein said that compound interest is the universe’s most powerful force, he wasn’t kidding. Set aside $5 a day, every day, beginning when your baby is born, and invest it at 8%. By age 18, your child will have about $73,000 put aside for college expenses. Assuming no withdrawals for college expenses, by age 65 that child will have a $4 million cushion to pad her retirement. Of course, to reach those numbers, you’ll have to set aside $5 a day.
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By MONEYby Ingrid Case When Albert Einstein said that compound interest is the universe’s most powerful force, he wasn’t kidding. Set aside $5 a day, every day, beginning when your baby is born, and invest it at 8%. By age 18, your child will have about $73,000 put aside for college expenses. Assuming no withdrawals for college expenses, by age 65 that child will have a $4 million cushion to pad her retirement. Of course, to reach those numbers, you’ll have to set aside $5 a day.