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How Celebrities Save for Their Kids’ College (And Why Virginia529 is a Smart Choice!)



While there isn't much public information on how celebrities like Gwyneth Paltrow or Ben Affleck specifically use 529 plans, we can infer their strategies based on their financial standing and the general advice given by top financial planners. Celebrities, with their unique financial situations, are likely to approach college savings with a combination of tax optimization, long-term wealth transfer, and a focus on highly-rated, low-cost investment options. This is where a plan like Virginia529 shines, even for the ultra-rich.

The Celebrity College Savings Mindset

Celebrities and high-net-worth individuals aren't just saving for college; they're strategically managing their wealth. Their primary motivations for using a 529 plan would be:

  • Tax Efficiency: The tax-free growth and tax-free withdrawals for qualified educational expenses are the main selling points.1 Even for those in the highest tax brackets, avoiding taxes on decades of investment growth is a significant benefit.

  • Estate Planning: A 529 plan allows for a substantial amount of money to be moved out of their taxable estate and into an account for their children's benefit.2 The generous gift tax exclusions, including the ability to front-load five years' worth of contributions at once, make this an attractive estate planning tool.3

  • Asset Protection: In many states, 529 plans offer a degree of protection from creditors, which is a crucial consideration for individuals with high public profiles and significant assets.

Why a Top-Tier Plan Like Virginia529 is a Smart Choice

With their resources, celebrities could choose any 529 plan in the country. They'd likely gravitate towards a plan with the features that are most valuable to high-net-worth investors, and Virginia529 consistently checks those boxes.

  • Lowest Fees: The wealthy have access to top-tier financial advice, and one of the first things a savvy advisor will look at is a plan's fee structure. Virginia529's Invest529 is known for its extremely low administrative and investment fees.4 Over the long term, these low fees compound to a massive difference in returns, which is a principle that appeals to any investor, no matter their income.

  • Diverse and High-Quality Investments: Celebrities and their financial planners wouldn't settle for a plan with limited or underperforming investment options. Virginia529 offers a wide range of portfolios managed by reputable firms like Vanguard and American Funds, giving them the flexibility to craft a strategy that aligns with their goals.5 They can choose from age-based portfolios for a "set it and forget it" approach or select individual funds to be more hands-on.6

  • Flexible and Adaptable: Celebrities’ lives are often unpredictable, and their kids' educational paths may not be a straight line from high school to a four-year university. Virginia529’s flexibility to pay for K-12 tuition, trade schools, and even student loan repayment is a huge advantage.7 It provides a safety net for any unexpected turns in a child's educational journey. The new Roth IRA rollover provision is also a major draw, providing an additional layer of flexibility for any unused funds.8

The Bottom Line

While the public might focus on celebrity-funded scholarships or large-scale donations, the reality is that behind the scenes, celebrities are likely using the same powerful financial tools as everyone else—just on a larger scale. For them, a 529 plan is not just about saving for college; it's a critical component of a comprehensive wealth management strategy.

And for this purpose, a highly-rated, low-cost, and flexible plan like Virginia529 is an ideal choice. It offers the tax benefits, asset protection, and investment options that make it a smart, strategic vehicle for anyone looking to build a secure financial future for their children, whether they're on the red carpet or in your own home.

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