Time – Sarah Max
“Whether you have $100 to give or $10,000, the best investment gift for a young grandchild is to open or contribute to a tax-advantaged 529 college savings plan. “For grandparents who want to help their kids pay for college, these make the most sense,” says John Gajkowski, a certified financial planner and co-founder of Money Managers Financial Group, in Oak Brook, Ill. “You have a broad range of choices of where and how you invest, and you can maintain control if you wish.” More importantly, your investment grows sans tax, and qualified withdrawals—for things like tuition, fees, and room and board for higher education—aren’t subject to state or federal tax. Some states offer a tax deduction to boot if you go with your home-state plan.”(more)