Saving for College - we can help!

Dear Megan,

Autumn brings football, talk of Halloween costumes and pumpkin spice lattes. While we can’t tell you how many different food items use pumpkin spice, we can talk about 529 plans and some creative ways to use these flexible savings plans. Let’s dive in!

What is a 529 plan?

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. 529 plans are authorized by Section 529 of the Internal Revenue Code

For Grandparents

Thirty years ago, it was conceivable to work part-time and pay your way through college. Now, college costs have grown much faster than wages, making this impossible. For our clients who value higher education and can help, we recommend a 529 plan for grandchildren. The plan is owned by one of the grandparents and can benefit any of their family members. Younger parents often ask, “how can we ask our parents to donate to college funding instead of buying our kids more toys?” Contributions to a 529 can be made monthly or in a lump sum. It is a great way to gift money and moves it out of your estate.

For Parents

Don’t be discouraged by rising college costs, just get started. Cass started saving $50 per child per month when her children were in kindergarten and first grade. It did not seem like enough, but by increasing the amount as frequently as she could, she and her husband were able to fully fund 529 plans for each of their sons. Again, just get started.

Frequently Asked Question – Using the Funds

There are no time or age limits on using a state 529 savings plan. If all the money isn’t used for one child, the owner can change the beneficiary to a sibling, cousin, or parent.

Distributing the funds is very easy! Distribution requests can be made online or over the phone. While it isn’t necessary to show an offsetting receipt when requesting funds from a 529, we recommend keeping records for tax purposes.

As always, please reach out if you would like to discuss this further!



Cass, Bleckley and Megan

Access your reports - Visit our web page for links to Fidelity (for access to statements and tax documents) and to the Orion portal (for access to performance reports and billing statements): Watercolor Financial Group website

Steve and Carla Kennedy

Celebrate 50th Wedding 


Megan Poore helped our clients, Steve and Carla Kennedy celebrate their anniversary with lunch.  They were married in Arlington, Texas Congratulations on five decades of marriage!  

Bleckley Dobbs, Cass Grange and Megan Poore provide advisory services through NWAM, LLC dba Northwest Asset Management, an SEC registered investment adviser. Watercolor Financial Group is not a registered investment adviser. Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements. This material is intended to provide general financial education and is not written or intended as tax or legal advice.