Many Boomers Planning Second Careers With 529s

While most parents and grandparents think of college savings 529 plans as fit for their offspring, some of them are now actively using the investment vehicles to save for adult education, The Wall Street Journal reports. And a large number of them are planning to use the education to plan for a second career.

Seeing this as a clear trend, some universities are responding with classes tailored for these older adults. “We’re going to make this part of our retirement planning,” said Ray Loewe, a college-aid financial planner. “I never had a chance to study music. I never had a chance to study art.”

Bill Raynor, vice president for national sales of 529 plans at OppenheimerFunds, weighed in on the trend: “It’s not just for a kid who wants to go to college or to law school. There’s actually a use for many folks.” And should a 529 investor decide they don’t want to use the funds for their own education at an accredited school, they can either name another beneficiary or withdraw the funds for any other use, with a 10% penalty.

The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.