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.
With everybody heading back to school in some regard or another I can’t help but get into the back to school spirit (it’s the former teacher in me!) There’s something about the new school year. The fresh start to learn, set new goals, and plan for the future – and if you’re a parent you know that each new school year means your a year closer to that future being a reality.
Arabella’s only three, but if I’m being honest I’ve thought about her future since before she was born. When I was pregnant I thought about who she would be – her likes and dislikes, her unique personality. I’ve sat with my cup of coffee more times than I can count in awe of her imagination and curiosity. I’ve wondered what her future will hold – what she’ll grow up to be. I can’t see into the future but I can do my best to give her the tools she needs to get there when the time comes. My two top tools are her education and her NY’s 529 College Saving Program Direct Plan.
Four Helpful Tips for Both Learning and Saving
- It’s never too early or too late to start – but now is better than later. Your actions today determine your future. If there’s something you need to learn, a goal you want to achieve just start. We opened a NY 529 Direct Plan for Arabella the week we brought her home. If you’re expecting a baby it’s never too early to start planning for their future. If you have older kids and have just started worrying about the cost of college that is getting closer and closer it’s not too late.
- Consistency over time is a practice for success. Practicing something for a little bit of time constantly tends to lead to success. Saving for college with the NY 529 Direct Plan makes saving for college simple. You can set up automatic transfers or payroll deductions to make consistent contributions over time without having to think about it. This is a must for me as a busy mom!
- Something is better than nothing. I’m a firm believer that you should always avoid the idea that it has to be all or nothing. If you spend a few minutes learning a new skill, teaching your kids, reading with them – – it’s better than not doing it at all. The same is true for savings. Even if you only have a small amount to invest right now, it’s better than nothing and with New York’s 529 College Saving Program Direct Plan you have time on your side.
- It takes a village. Raising kids and teaching kids is not something that was meant to be done alone. Luckily neither is saving for their future! The NY 529 Direct Plan makes it easy for friends and family to make online contributions as gifts.
Back to School and Thinking Forward
Our back to school routine means a lot of hands on learning. We spend our days reading, playing, imagining – building the blocks today for the future. We play dress up and test out what we want to be. Right now Arabella says she’s going to be an artist. I loved building this rocket ship with her. While we worked we talked about outer space, the planets, the moon, and the stars. While I’m spending time teaching and learning with Arabella my automatic contributions to my NY 529 Direct Plan are working for me to save for the future – whatever it might hold. Whether you have a future chef, artist, or scientist New York’s 529 College Savings Program Direct Plan has you covered!
Check out NYsaves.org/blastoff for a full list of NY’s 529 Direct Plan benefits and to start future thinking today.
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
