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How to Save For College With Your Investments

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Consider a simple 50/50 split: 50% of the money you save for college can go to a 529 plan, and the other 50% can go into a brokerage account.

Other details to consider when using 529 plans to save for college

Before you contribute to a 529 plan, you need to choose a specific plan to use. Not all 529 plans are the same, and you're not limited to the plan sponsored by your state.

Your state's plan is a good starting point if they offer specific tax incentives for 529 contributions. The savings are limited, however, so you need to consider the investment options within a plan too. You'll want to choose something with a range of options and one that offers funds with lower expense ratios to avoid your savings being eaten away by investment fees.

When it comes to choosing specific funds within the plan, you'll want to select one based on your child's age. Much like a target date retirement fund that you might find in your own 401(k), funds within a 529 plan usually slowly shift to a more conservative allocation as your child gets closer to needing to use the money for school.

If you're having trouble deciding how to invest for college, Synovus can help. Give us a call at 1-888-SYNOVUS (1-888-796-6887) to start the college savings conversation.5

Important disclosure information

This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.

  1. Farran Powell and Emma Kerr, U.S. News and World Report, "Qualified Expenses You Can Pay for With a 529 Plan," published November 11, 2019, accessed August 3rd, 2020. Back
  2. SEC, "Investor Bulletin: 10 Questions to Consider Before Opening a 529 Account," , published May 18, 2018, accessed August 3rd, 2020. Back
  3. Jean Folger, Investopedia, "Minimize taxes and maximize your bottom line," , updated January 27, 2020, accessed August 14th, 2020 Back
  4. SavingforCollege.com, "State tax deduction or credit for contributions," accessed August 4th, 2020. Back
  5. 529 plans are provided by Synovus Securities, Inc. ("SSI") and Creative Financial Group, a division of SSI. Synovus Securities, Inc., is a member of FINRA/SIPC. Investment products and services are not FDIC insured, are not deposits of or other obligations of Synovus Bank, are not guaranteed by Synovus Bank and involve investment risk, including possible loss of principal amount invested. Synovus Securities, Inc. is a subsidiary of Synovus Financial Corp and an affiliate of Synovus Bank. You can obtain more information about Synovus Securities, Inc. and its Registered Representatives by accessing BrokerCheck. 529 College Savings Plan information, including fees, expenses and sales charges, on the particular plan you select is available in the offering circular or official statement provided by the plan sponsor. Please read the information carefully prior to investing. Back