In Episode 86 of the Real Life Planning Podcast, Cynthia Meyer, CFP®, CFA®, ChFC® speaks about one of the biggest early parenting financial decisions: front-loading a 529 plan or using that same lump sum as a down payment on a rental property.

Drawing from her own experience as both a rental property owner and a parent who funded 529 plans at birth, Cynthia walks through the math, tax rules, FAFSA implications, leverage opportunities, liquidity risks, and long-term wealth tradeoffs of both strategies. This episode is a masterclass in using time and compounding to your advantage.

" When you have a newborn, you have the most valuable resource in education planning, time.” - Cynthia Meyer

This week on Real Life Planning Podcast:

💡Why the first year after your child is born is the most powerful time to invest for college [00:02:21]

💡How 529 plans work, including tax benefits and flexibility if plans change [00:03:21]

💡How a rental property can use leverage, cash flow, and appreciation to fund education [00:08:36]

💡How FAFSA and CSS profile treat 529 plans versus rental properties [00:12:19]

💡When to choose a 529 vs. real estate [00:14:38]

Takeaway Quotes:

" A lump sum invested at birth gives you 18 or 19 years of compound returns. Time is your best friend here."-Cynthia Meyer

" Real estate might be passive for tax purposes, but it’s not passive in effort."- Cynthia Meyer

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Real Life Planning, LLC is an Investment Advisor registered with the States of New Jersey, New York, Texas, Virginia, and California. All views, expressions, and opinions included in this communication are subject to change. This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy, or completeness of, any description of securities, markets or developments mentioned. Our current disclosure brochure, Form ADV Part 2, is available for your review upon request, and on our website, REALLIFEPLANNING.COM.

College Funding Strategy Lump Sum into a 529 Plan or a Rental Property