If you were following from the beginning, I was planning on using The Fund to help me reach financial independence earlier than 58. But also to use it as a way of helping pay for my future kid's college education instead of investing in a 529. It didn't make sense to invest in a 529 when currently, my state (California) does not offer tax breaks for contributing to a 529. Well, in late February, an assemblywoman from the San Francisco Bay Area introduced a bill to give a 20% tax credit (up to $500) for contributing to the 529. Here are the specifics on the bill. Although it isn't a law as of yet, I feel it will get passed so I have added to my goals of contributing $2.5k to a 529 to max out on the tax credit.
You may be wondering how I can contribute to a 529 without a child. I plan on opening up an account and have my niece as a beneficiary and contribute $2.5k to it per year just to get the tax credit when the bill passes. If we are able to have children, I'll switch the beneficiary to my kid. If we aren't fortunate, my niece will continue to be the beneficiary. Either way, I get a tax benefit and my niece/kid(s) gets help with paying for college. I say it's a win win.
You may be wondering how I can contribute to a 529 without a child. I plan on opening up an account and have my niece as a beneficiary and contribute $2.5k to it per year just to get the tax credit when the bill passes. If we are able to have children, I'll switch the beneficiary to my kid. If we aren't fortunate, my niece will continue to be the beneficiary. Either way, I get a tax benefit and my niece/kid(s) gets help with paying for college. I say it's a win win.
Plus, how can you say no to free money? LOL I certainly won't.
