Slow lazy saving story.

I've got some nieces. When the oldest was some sort of little, my wife and I realized that nobody was saving for college for her. We opened a 529 plan for her and had $50 a month auto deposited into it. I sort of watched it for a few years, but then I had kids and I kind of ignored it. $50 a month still chugging away.
She started college in the fall. I couldn't find my password for the account and was a terrible lazy uncle and didn't do anything, however for Christmas this year it seemed easier to find the password than shop for a present for an 18 year old girl. I was pleasantly surprised to find that the saving and investment returns had added up to a little over a full year of college costs for her. I honestly had no idea that it was that much.
I think it should be a good Christmas for her.

less lazy, more foresight!

well played Sir!

Good Uncle !! Shoot it straight to the college and a nice card to the nieces.

My son and daughter in law are still paying off student loans; direct deposit. If the auto deduct is not in synch by one hour, the phone calls come. Sally Mae is a bitch.

Dan

Way to go! You are one of the good folks in this world

914Driver wrote: Good Uncle !! Shoot it straight to the college and a nice card to the nieces.

Not necessary with it being in a 529 plan, not like it can go anywhere other than education. I should know, I have about a semesters worth of grad school in one that I likely won't need as I expect employment to take care of my masters if I pursue that. So at least my kids have a good head start, before I even have kids.

Still discussing the withdrawal rules with my CPA mother in law so I understand what's what. Discussing with my brother how to give this to my niece so that she understands that this isn't someone paying for her school, but someone helping her pay for her own school.
I just figured all of this out after tucking the kids into bed last night so I'm still making it up as I go along.

mazdeuce wrote: Still discussing the withdrawal rules with my CPA mother in law so I understand what's what. Discussing with my brother how to give this to my niece so that she understands that this isn't someone paying for her school, but someone helping her pay for her own school. I just figured all of this out after tucking the kids into bed last night so I'm still making it up as I go along.

You or your brother should take this opportunity to educate her on the power of saving and compound interest. $50 a month isn't much, most people would never notice it missing. But do that over a 35 year careeer, or an 18 year old life, and you have a significant amount. Save Early, Save Often.

A truly creative uncle would get her the most ugly sweater or something like that, and put the 529 plan balance as the receipt saying that if you don't like the sweater, the gift receipt is in the box if you need to return it. Then wait for the fun.

While we were no were near as generous to our niece, we gave here a photo frame with a picture of my wife and I....but hid a gift card behind the picture. We didn't say a word.

"I honestly had no idea that it was that much."

compound interest FTW