Financial Focus Help grandkids prepare for the future By Edward Jones - Edward Jones Financial Advisor H you're a grandparent, you don't need Grandparents Day, observed on Sept. 12, to remind you of the joys of having grandchildren. Yet, you might want to use this day as an opportunity to think about ways to help provide for your grandchildrens future. The type of gi o upport you prvide will e diferent at arsus stages of your grandchidrens lves. Here are a few suggestions: When they're born... Open a 529 plan. It's never too early to start saving for college or other types of advanced education. To help your grandchidren meet these costs, you could invest in a 529 education savings plan, which offers potential tax advantages if the money is used for qualified education expenses. If the grandchild for whom you've established the account ends up not using it, you can change the benefidary to a qualified family member of the original beneficary. (Be aware, though, that a 529 plan could affect your grandchild's financial aid prospects.) Ifyour grandhild doesn't go to a college or university, a 529 plan can also pay for expenses related to apprenticeship programs offered through trade and vocational schools and registered with the U.S. Department of Labor. When they're children... Open a savings account. It'simportant for your grandchildren to develop good financial habits - and one way you can help is to open asavings account for them and encourage them to contribute to it. You might even offer an incentive, such as matching their contributions, eitherin whole or in part. Consider shopping around for a high-yield savings account that's free to open and charges no monthly maintenance fees. Establish a austodial account. You may want to introduce your grandchildren to the world of investing by starting a custodial account (known as UGMA or UTMA) in their name. You can put most types of invest- ments, such as stocks and mutual funds, inside this account and track their progress along with your grand- children. Chidren often enjoy learning about investing -and they may like owning shares of companies that make familiar products and services. The earnings generated by these investments can have taximplications, so youl want to consult with your tax advisor before opening the custodial account. And you can't hold onto this account forever - once your grandchildren reach the age of majority, they gain control of the account, so they can do what they please with the investments. When they're young adults.. Help with the down payment on a home. Once your grandchildren are out in the world, they may well want to become homeowners. And, as you know, it can be challenging to come up with a down payment, so, if you an afford it, you may want to help in this area. You'l be doing your grandchildren a big favor, because home ownership is a key element in building wealth. Provide financial guidance. As your grandchildren join the working world, they could benefit from advice and guidance on various issues, such as setting short- and long-term goals, managing their 401(k) plans and choosing an appropriate investment mir. Sa, consider making an appointment for them with a finandal professional. By helping your grandchildren at diffrent pons on their mad through life, you can make their jumey mare pleasant - and, in the process, you'l gain a lot of satisfaction. This article was written by Eidwand lones for une by your local Eidwand kenes Financial Adviser. Edvand Jones Trust Company and Edwand kones, and their employees nd financial advisos, are net estate planners nd cannot provide tar or legal advice. You should consult your ostate planning atorney or qualfied tas adviser reganding your situation. Steve Schwarzbauer | Financial Advisor Edward Jones MAKING SENSE OF INVESTING 211 1st Ave East Cambridge, MN | Tele. 763-552-1100 www.edwardjones.com steve.schwarzbauer@edwardjones.com Member SIPC Financial Focus Help grandkids prepare for the future By Edward Jones - Edward Jones Financial Advisor H you're a grandparent, you don't need Grandparents Day, observed on Sept. 12, to remind you of the joys of having grandchildren. Yet, you might want to use this day as an opportunity to think about ways to help provide for your grandchildrens future. The type of gi o upport you prvide will e diferent at arsus stages of your grandchidrens lves. Here are a few suggestions: When they're born... Open a 529 plan. It's never too early to start saving for college or other types of advanced education. To help your grandchidren meet these costs, you could invest in a 529 education savings plan, which offers potential tax advantages if the money is used for qualified education expenses. If the grandchild for whom you've established the account ends up not using it, you can change the benefidary to a qualified family member of the original beneficary. (Be aware, though, that a 529 plan could affect your grandchild's financial aid prospects.) Ifyour grandhild doesn't go to a college or university, a 529 plan can also pay for expenses related to apprenticeship programs offered through trade and vocational schools and registered with the U.S. Department of Labor. When they're children... Open a savings account. It'simportant for your grandchildren to develop good financial habits - and one way you can help is to open asavings account for them and encourage them to contribute to it. You might even offer an incentive, such as matching their contributions, eitherin whole or in part. Consider shopping around for a high-yield savings account that's free to open and charges no monthly maintenance fees. Establish a austodial account. You may want to introduce your grandchildren to the world of investing by starting a custodial account (known as UGMA or UTMA) in their name. You can put most types of invest- ments, such as stocks and mutual funds, inside this account and track their progress along with your grand- children. Chidren often enjoy learning about investing -and they may like owning shares of companies that make familiar products and services. The earnings generated by these investments can have taximplications, so youl want to consult with your tax advisor before opening the custodial account. And you can't hold onto this account forever - once your grandchildren reach the age of majority, they gain control of the account, so they can do what they please with the investments. When they're young adults.. Help with the down payment on a home. Once your grandchildren are out in the world, they may well want to become homeowners. And, as you know, it can be challenging to come up with a down payment, so, if you an afford it, you may want to help in this area. You'l be doing your grandchildren a big favor, because home ownership is a key element in building wealth. Provide financial guidance. As your grandchildren join the working world, they could benefit from advice and guidance on various issues, such as setting short- and long-term goals, managing their 401(k) plans and choosing an appropriate investment mir. Sa, consider making an appointment for them with a finandal professional. By helping your grandchildren at diffrent pons on their mad through life, you can make their jumey mare pleasant - and, in the process, you'l gain a lot of satisfaction. This article was written by Eidwand lones for une by your local Eidwand kenes Financial Adviser. Edvand Jones Trust Company and Edwand kones, and their employees nd financial advisos, are net estate planners nd cannot provide tar or legal advice. You should consult your ostate planning atorney or qualfied tas adviser reganding your situation. Steve Schwarzbauer | Financial Advisor Edward Jones MAKING SENSE OF INVESTING 211 1st Ave East Cambridge, MN | Tele. 763-552-1100 www.edwardjones.com steve.schwarzbauer@edwardjones.com Member SIPC