In this Mullooly Asset Management video Tom and Brendan discuss 529 accounts. 529 accounts were created so that students, parents, or grandparents could have a way to save money to help counteract the constantly increasing cost of college. There are a handful of positive and negative qualities that you should be aware of before deciding to invest in one of these accounts. Tom and Brendan review what some of these positives and negatives are in this video, and after watching it you should have a sound understanding of whether or not these accounts are for you.
One positive aspect of 529 accounts is that they allow the money invested in them to be transferred to other family members. This could be particularly useful if you are thinking of starting up an account for a young child. If they do not end up going to college, then you can transfer the account to a sibling or even a cousin. On the flip side, one negative aspect of 529 accounts is that they often contain fees. These fees are something that you NEED to be cognizant of when investing.
Being acquainted with topics such as 529 accounts, 401k accounts, and compound interest is necessary because they are all integral parts of financial planning. We try to educate our clients on these topics so that they have a better understanding of what we do for them at Mullooly Asset Management. There is plenty to learn about in this week’s presentation, so make sure to tune in and to check out our other educational videos!