Saving For Your Retirement or Your Regeneration?
In the U.S., most of us are familiar with how Social Security, 401k plans, and company pension plans help us save for retirement. Many of us may also be familiar with 529 plans, a tax-advantaged investment vehicle designed to encourage saving for future higher education expenses for one’s children or other beneficiaries.
Many of us expect to regenerate ourselves in midlife or beyond as “long-life learners,” and fewer of us are retiring at age 65. So maybe it’s time for the government to spotlight how we can save for our own rewiring, whether that’s going back to get a master’s or doing an extended online certification program on a particular topic. As the world is changing faster, this kind of reskilling is more necessary.
Most of us don’t realize that we can use a 529 plan to pay for our own educational programs. It even covers any apprenticeship program you might want to pursue or hobbies you want to fund that have an educational component. You get the same tax breaks and benefits as any 529 plan owner. You can fund the account with new money or with unused funds from a child’s account. Any leftover money in your 529 that you don’t use can go to the 529 of a child, grandchild, or other beneficiaries.
So, start saving now. The more you put away, the more enriching your midlife education might be.
