The following client scenarios are not specific to actual events and are not indicative of all client experiences. These examples are used to illustrate how an advisor at Achieva Wealth Advisors can potentially assist Achieva members with a variety of investment-related needs. Your results may differ substantially. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.
Larry and Helen, who are both in their mid-60s and still working at successful careers, have recently joined the ranks of doting grandparents since their arrival of their first grandchild. As fun as it is to buy baby toys and clothes, they know that what their granddaughter really needs is a way to pay for college in 18 years, not another brightly colored item.
They met with their Achieva Wealth Advisor to discuss the best way to help save for their granddaughter’s college education. After showing off the latest baby photos, they got down to business. They wanted to try to minimize the tax burden for everyone in the process and ensure their money is working as hard as their other investments.
The advisor discussed the various college savings plans, including 529s, Coverdell accounts and even Roth IRAs. Larry and Helen decided that a 529 made the most sense. Their advisor then suggested that the child’s parents set up the account in their names and the grandparents, and other family members, can make contributions directly to it.
On the next visit, Larry and Helen brought their son and daughter-in-law with them to set up the account. Although Larry and Helen promised to put the bulk of their gifts to the baby in the 529, they couldn’t resist picking up an adorable sunhat at the new baby boutique down the street.