Rossen Reports: How to invest for your kids’ college

Yeah, I love to answer your questions whenever I can. I just got this email from Tommy who says I want to invest money for my grandchildren to have for either college, *** car or whatever they need. What can I do to invest money wisely that will grow after making that initial and only investment. There are plans out there for you like the 5 to 9 planets an investment account designed to help families save for college. Basically you put in the initial deposit and earnings will grow tax free through the life of the account. It's not subject to income tax. That's really cool. Typically to get the money out, you need to use it for educational purposes like tuition and room and board. But *** new law is coming out if your child or grandchild decides not to go to college or they don't use all the money. Guess what? You can take that and roll it over okay. All the unused 5 to 9 money into their Roth Ira with no penalty. Another option if you want to go with something *** little more flexible. *** lot of banks have youth accounts that can help you like Fidelity's Youth account, lets you set up *** savings account and it's all owned by your child, their grandchild. There's no account or subscription fees, no account or subscription fees. And they're running *** special right now. Fidelity is there going to give you $100 to fund *** new account? And they're going to give another $50 to the child so you can put all of that into their account As the initial investment, I'm gonna put all of these plans and *** few more we found on my website Rawson reports dot com. Hope that answers your question, Tommy back to you.

Saving for your child’s or grandchild’s college is difficult. Especially if you want to help but don’t have the money to keep investing every month. There are plans out there that will let you contribute once or twice without compromising your own finances month after month.For example, finance experts say you can start up with a 529 plan. It’s an investment account designed to help families save for college. You put in the initial deposit and earnings will grow tax-free through the life of the account. Typically, to get the money out, you need to use it for educational purposes like tuition and room and board. But an incoming law will allow you to roll over unused 529 funds into your child or grandchild's Roth IRA with no penalty if they decide not to go to college or don't use all of the money. There are two types of 529 plans — college savings plans and prepaid tuition plans. So make sure you look at which one is right for your family. Learn more about 529 plans here. There's another option if you want to go with something a little more flexible. A lot of banks have "youth accounts" that can help you invest. Fidelity's youth accounts allow you to set up a savings account and it's all owned by your child or grandchild. There are no account or subscription fees. Right now, Fidelity is running a special offer where you can get $100 when you fund a new account with another $50 for the child, so you can put all of that into their account as the initial investment.

For example, finance experts say you can start up with a 529 plan. It’s an investment account designed to help families save for college.

You put in the initial deposit and earnings will grow tax-free through the life of the account. Typically, to get the money out, you need to use it for educational purposes like tuition and room and board. But an incoming law will allow you to roll over unused 529 funds into your child or grandchild's Roth IRA with no penalty if they decide not to go to college or don't use all of the money.

There are two types of 529 plans — college savings plans and prepaid tuition plans. So make sure you look at which one is right for your family. Learn more about 529 plans .

There's another option if you want to go with something a little more flexible. A lot of banks have "youth accounts" that can help you invest. youth accounts allow you to set up a savings account and it's all owned by your child or grandchild. There are no account or subscription fees.

Right now, Fidelity is running a special offer where you can get $100 when you fund a new account with another $50 for the child, so you can put all of that into their account as the initial investment.