College Funding Strategy Lump Sum into a 529 Plan or Rental Strategy | Real Life Planning Episode 86
Financial PlanningIn 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:
" Real estate might be passive for tax purposes, but it’s not passive in effort." - Cynthia Meyer
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About the Real Life Planning Podcast
Hosts Cynthia Meyer and Vekevia Tillman-Jones explore practical steps for real estate investors to build financial freedom and make working for someone else optional.
If you like this video podcast, consider joining Real Life Planning’s Question of the Week where our CERTIFIED FINANCIAL PLANNERs™ and rental property business owners answer the most common questions about real estate financial planning direct to your inbox.
This blog is for general financial education purposes. Information contained in this blog should not be construed as financial, tax, real estate, legal, or investment advice. For educational purposes, blog posts may contain links to other websites which are not under the control or and are not maintained by Real Life Planning. Real Life Planning has provided those links for your convenience but does not necessarily endorse all the material on those sites. Please consult your financial, real estate, legal, or tax advisor for advice specific to your situation.