July 6, 2020 What's the Best Way to Save for College? The Pros and Cons of 529s vs. UTMA Accounts

Summary: by Ingrid Case When Albert Einstein said that compound interest is the universe’s most powerful force, he wasn’t kidding. Set aside $5 a day, every day, beginning when your baby is born, and invest it at 8%. By age 18, your child will have about $73,000 put aside for college expenses. Assuming no withdrawals for college expenses, by age 65 that child will have a $4 million cushion to pad her retirement. Of course, to reach those numbers, you’ll have to set aside $5 a day.