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NW Ohio | I started a custodial account for my nieces and will start one for my son who will be here this month. Benefit of the custodial account is it can be used for anything from school, car, home ect. I was going to go the 529 route for college but as others have said the landscape has changed and college is seeming to be less and less ideal for many. My thought was by the time my nieces can drive what is a first car going to cost? They can use some of the money in their account towards that with no questions asked and at 18 they take full control of the account.
I also wanted to add, the 529 is for school only. It can be rolled into another Childs name if the first one does not use it for schooling. It can be converted to a Roth but then you still have limited access to the money without being taxed heavily for early withdraws.
Edited by Enginerd 1/5/2025 06:33
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New Dad: Tax Savings and College Investing Ideas
