S4E27 – How a Grandchild Can Change Your Retirement Plans
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When a grandchild arrives, it’s more than a joyful addition to the family — it can also bring new considerations for your retirement plan. In this episode of Kitchen Table Finance, Dave shares his own recent experience becoming a grandfather and how it’s shifted his financial focus.
Nick and Dave talk through Grandparents’ Retirement Plans:
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Why Dave moved from contributing to his adult children’s Roth IRAs to funding a 529 college savings plan for his granddaughter.
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The pros and cons of grandparents owning the 529 versus letting parents manage it.
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How to avoid “overfunding” a college plan when multiple family members are contributing.
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Why the Michigan 529 plan ranks among the top in the country — and how residents get an extra tax perk.
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How 529 plan rules have evolved, making funds more flexible for K–12, trade schools, and even Roth IRA rollovers.
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Balancing helping family with making sure your own retirement savings are on track first.
Dave also shares some lessons learned from starting his own kids’ 529 plans back in 2001 — and how even small, consistent contributions can add up over time thanks to compounding.
Whether you’re a new grandparent or just starting to think about how you want to help the next generation, this episode will give you practical, real-world insights you can put into action.
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