A new school year will soon begin.
And if you have young children, it’s one year closer to the day when they head off to college.
You might be preparing for that day with a 529 education savings plan - but should you be concerned if you need to start taking withdrawals to pay for education expenses when the financial markets are volatile?
Long-term investment vehicles based on the financial markets, like a 529 plan, will constantly fluctuate in value.
And keep in mind the big advantages offered by a 529 plan: Earnings and withdrawals are federally tax-free when used for qualified education expenses.
And, in some states, a 529 plan can be used for K-12 schooling as well.
Furthermore, many 529 plans offer investments that gradually become more risk-averse as the beneficiary gets closer to college age.
The financial markets will always be in flux, but that shouldn’t deter you from staying with a 529 plan — it’s still one of the best investments you can make in your child’s future.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor John Dickerson. Member SIPC.
