Compare the numbersSuppose you start saving $100 a month in a tax-free 529 plan when your child is born. In 18 years, assuming 6% average annual investment earnings, you could have $37,086 to use for college expenses. That’s $15,486 more than you invested—and that you won’t have to borrow!
Save more so you can borrow less
It all boils down to this: The more you save, the more your money can work for you and the less you (or your child) will have to borrow and repay with interest. And even if your child is already a teenager, there’s still time to start saving. Why not begin now?
*This hypothetical example doesn’t represent the returns on any particular investments, and the final account balance reflects no taxes or penalties that may be due upon distribution.
All investing is subject to risk, including the possible loss of the money you invest.
The availability of tax or other benefits may be contingent on meeting other requirements.
A plan of regular investment does not ensure a profit or protect against a loss.
For more information about any 529 college savings plan, contact the plan provider to obtain a Program Description, which includes investment objectives, risk, charges, expenses, and other information; read and consider it carefully before investing. If you are not a taxpayer of the state offering the plan, consider before investing whether your or the designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s qualified tuition program. Vanguard Marketing Corporation serves as distributor and underwriter for some 529 plans.
For more information about The Vanguard 529 College Savings Plan, call 866-734-4533 or obtain a Program Description, which includes investment objectives, risks, charges, expenses, and other information; read and consider it carefully before investing. Vanguard Marketing Corporation, Distributor and Underwriter.
The Vanguard 529 College Savings Plan is a Nevada Trust administered by the Board of Trustees of the College Savings Plans of Nevada, chaired by the Nevada State Treasurer.
The Vanguard Group, Inc., serves as the Investment Manager and through its affiliate, Vanguard Marketing Corporation, markets and distributes the Plan. Ascensus Broker Dealer Services, Inc., serves as Program Manager and has overall responsibility for the day-to-day operations, including effecting transactions. The Plan’s portfolios, although they invest in Vanguard mutual funds, are not mutual funds.