Here's exactly why I would open a 529 for my grandchild, but not my child. I'm Tyler.

@ly5x0k98

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Why it worked

The video provides actionable financial advice with clear benefits, leveraging a timely change in FAFSA rules to create a compelling reason for grandparents to save for their grandchildren's education. The clear breakdown into numbered points and the promise of further free content in the bio make it highly engaging.

Summary

The video explains three key reasons why grandparents should open a 529 plan for their grandchildren, focusing on financial aid benefits and maximizing educational funding. It highlights how grandparent-owned 529s don't count as student assets under new FAFSA rules, allowing for maximum financial aid, and suggests super-funding the plan early to maximize growth and avoid gift taxes.

Structure

1Introduction of Tyler and his background
2Reason 1: FAFSA rules and financial aid impact
3Reason 2: Super-funding the 529 for maximum growth and tax benefits
4Reason 3: Projected educational fund growth and flexibility
5Call to action for newsletter sign-up

Call to action

sign up for my free weekly newsletter by clicking the link in my bio

On-screen text

The #1 Reason to Open a 529 for Your GRANDKID

Original caption

Learn how opening a $5.29 for your grandchild can maximize their financial aid and educational funding! Discuss strategies and share tips to help future generations. #financialfreedom #grandparents #529plan #moneytips #educationalfunding #wealth #finance #fypシ #news #tyler

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Transcript

Here's exactly why I would open a 529 for my grandchild, but not my child. I'm Tyler. I'm a former financial advisor and portfolio manager and now I make financial content for free so you don't have to pay for it. Number one: under new FAFSA rules starting in 2024, grandparent owned 529s don't count as a student asset and distributions aren't reported as student income. Translation your grandkid can get maximum financial aid while you're sitting on over $100,000 for their tuition. Number two: so when my grandchild is born, I'd super fund the 529 with five years of contributions up front, that's $190,000 if I were married and $95,000 if I was single. By doing this, I'd maximise their investment time horizon and I'd still pay zero dollars in gift taxes. No. 3. And after 18 years, at a projected 7% real rate of return, my grandchild would have access to over $600,000 to pay for educational expenses. And if they didn't want to go to college, just change the beneficiary and let the fund continue to grow. Not to mention you just took $190,000 out of your taxable estate. And if any of this is helpful, sign up for my free weekly newsletter by clicking the link in my bio, and each week I'll send you over another money playbook that actually works!