Financial Planning Tip September 2026

September 2026

With the summer over and kids headed back to school, now is a good time for a check up on the complicated topic of college savings. The short time frame (only 18 years of possible time to save) amplifies the difference in choices. All else equal, a child whose savings starts at birth will have about 1/3 more money available for college than a child whose savings starts at age 3. An annual difference of just 1% in investment returns will produce about 10% more savings at age 18. There's too much ground to cover this topic in just a few sentences, so we have attached our memo on 529 advice for those who are interested.

A few bits of universal advice:

• Save early and often. Your future self will be thankful.

• A 529 Savings Plan is a good foundation for college savings. Investments grow tax-free, and you may be eligible for state tax benefits to boot.

• Beware pre-selected portfolios. The heft and visibility of 529s has politicized the investing process.

• A taxable brokerage account is a flexible choice to supplement a 529. If you don't know whether to save for an in-state public university or an elite private college, these funds can be used for tuition or repurposed for retirement savings if they aren't needed.