Saving for College (529 plan)

 

• Only do this once your retirement is secure! You cannot take out a loan for your retirement!

• Colorado College Invest. Qualifies for state tax deduction. Make sure that you tell your tax preparer your contribution amount or enter it yourself on your Colorado tax return.

• Use the Direct Invest Option with Vanguard. This will give you the lowest fees!

• Select from age-based; conservative, moderate, or aggressive. I chose aggressive when my kids were young but have switched to moderate now that they are older. However, they will automatically adjust as your child gets closer to college age.

• There are rules about how this money can be used without incurring a penalty. If you want more flexibility, you could fully fund your Roth IRA and use those contributions for college expenses.