What We’re Doing: Planning for Nolan and Eamon’s Future

This post is sponsored by BabbleBoxx.com and contains information on the New York’s 529 College Savings Program Direct Plan. The content and opinions expressed in this post are my own.

I’ve never been a long term planner. As a family, we pretty much live week to week, with a few future events scheduled in here and there–but really, we enjoy being able to kind of “wing it” as much as possible. One thing though, that even we won’t take a chance on is setting up Nolan and Eamon, our two little guys–who will be big guys before we know it!–for the best possible future we can give them.

Nolan, who is now 4, recently came home from pre-k with a “project” he had made in class; he had written “engineer” in the spot where it asked what he wanted to be in the future (this part didn’t surprise us; he’s always had a laser-like focus when it comes to building things, and figuring out how to make “contraptions” work!) Well. This just smacked Tim and me right in the face because all of a sudden, it seemed like he would be graduating high school and going on to college in like 5 minutes. The number one piece of “advice” more seasoned parents give is how fast time flies and before you know it, your babies are going out into the world on their own.

In order to make sure we were doing everything we could as parents to set Nolan and Eamon up for a solid educational start, we started 529 savings accounts for each of them with NY’s 529 College Savings Program Direct Plan. The accountant who does our family’s taxes suggested it because it’s tax-advantaged, has no minimum contribution, and is super easy to start and manage online.* We make automatic contributions monthly for each of our little guys; plus, family members can even add to their accounts as milestone gifts. Instead of another annoying toy or item of clothing they’ll grow out of, loved ones can help build your kiddos a solid steppingstone to the college, trade, or vocational school of their choice in the future. Additionally, our NY 529 Direct Plan is flexible in that the boys don’t even have to use their money to go to a college in-state; it can be used at thousands of eligible colleges, universities and technical schools across the nation. Also–and this was important to us–our NY 529 Direct Plan is not “use or lose.” If for whatever reason Nolan and/or Eamon don’t end up needing it (Math prodigy? Athletic superstar? Maybe they’ll get full ride scholarships! Haha) we or they can withdraw the funds after taxes and penalties are paid.* (Talk to your tax advisor about your particular situation.) Having NY 529 Direct Plans for our boys honestly makes us feel like super responsible adults lol–the “long term planners” we never thought we’d be!

Sharing how to get your NY 529 Direct Plan started here: nysaves.org/blastoff. Hope this was helpful to you guys!

Xo,

Christine

DISCLOSURES

* Contributions of up to $10,000 are deductible annually from New York State taxable income for married couples filing jointly; single taxpayers can deduct up to $5,000 annually. New York State tax deductions may be subject to recapture in certain circumstances such as rollovers to another state’s 529 plan, federal nonqualified withdrawals, or withdrawals used to pay elementary or secondary school tuition, registered apprenticeship program expenses, or qualified education loan repayments as described in the Disclosure Booklet and Tuition Savings Agreement. State tax benefits for non-resident New York taxpayers may vary. Please consult your tax advisor about your particular situation

Earnings on federal nonqualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. Tax and other benefits are contingent on meeting other requirements. Please consult your tax advisor about your particular situation.

Investment returns are not guaranteed, and you could lose money by investing in the Direct Plan. 

For more information about New York’s 529 College Savings Program Direct Plan, download a Disclosure Booklet and Tuition Savings Agreement [nysaves.org] or request one by calling 877-NYSAVES (877-697-2837). This document includes investment objectives, risks, charges, expenses, and other information. You should read and consider them carefully before investing. 

Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other benefits that are only available for investments in that state’s 529 plan. Other state benefits may include financial aid, scholarship funds, and protection from creditors. 

The Comptroller of the State of New York and the New York State Higher Education Services Corporation are the Program Administrators and are responsible for implementing and administering the Direct Plan. 

Ascensus Broker Dealer Services, LLC, serves as Program Manager and, in connection with its affiliates, provides recordkeeping and administrative support services and is responsible for day-to-day operations of the Direct Plan. The Vanguard Group, Inc., serves as the Investment Manager. Vanguard Marketing Corporation provides marketing and distribution services to the Direct Plan

No guarantee: None of the State of New York, its agencies, the Federal Deposit Insurance Corporation (FDIC), The Vanguard Group, Inc., Ascensus Broker Dealer Services, LLC, nor any of their applicable affiliates insures accounts or guarantees the principal deposited therein or any investment returns on any account or investment portfolio. 

New York’s 529 College Savings Program currently includes two separate 529 plans. The Direct Plan is sold directly by the Program. You may also participate in the Advisor-Guided Plan, which is sold exclusively through financial advisors and has different investment options and higher fees and expenses as well as financial advisor compensation.

© 2021 New York’s 529 College Savings Program Direct Plan

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