May 29 is the day that parents of young children start thinking about their kids’ college years just a little bit more. That usually leads to a discussion with a financial advisor who will tell you about a special kind of tax-advantaged investment account known as a 529, a plan that helps provide funds for a child’s college tuition and other qualifying educational expenses. A 529 account may be a good solution for parents who want to lessen future out-of-pocket expenses that they or their child would eventually incur upon the kid’s college enrollment.
Typical 529 plans work similarly to retirement-minded 401K plans, where contributions can be invested in mutual funds, exchange-traded funds (ETFs), and other qualifying investments. Like a 401K, account balances in a 529 may vary by the day, but the goal is that your investments will have performed well enough that a relatively nominal principal investment will, over the course of many years, have grown into enough money to pay for a college education.
It’s a successful investment model for countless families, and for those whose children don’t eventually use the funds take heart. If one child doesn’t use the money for qualified college expenses, another eligible college-bound family member can. Most 529s also have options for rolling funds into an individual retirement account. Furthermore, there are state-specific versions of 529 plans that offer their own unique benefits and perks.
Of course, all of this information may have changed by the time you read this article; it’s always advisable to speak with your financial advisor before making any decisions regarding investments. But it’s all good to know as you consider this next nugget of information: there’s a coin that’s simply perfect for recognizing 529 Day: the 2021 North Carolina Higher Learning American Innovation Dollar. It was in Chapel Hill, a city in the northern-central part of The Tar Heel State, where University of North Carolina opened as the nation’s first public university.
The coin, anchored by an obverse depiction of the Statue of Liberty, sports a reverse that features the lamp of knowledge and a stack of textbooks surrounded by olive branches of peace. The coin, its symbology emanating the erudition of higher education, can be included in many different PCGS Registry Sets and is an apropos addition for any collector wishing to recognize 529 Day.