Edvest 529 Account Owner Spotlight: Kathryn Bracho

Account Owner sits down and shares her experiences with Edvest 529
By: Cheryl Rapp, Wisconsin Department of Financial Institutions

published July 19, 2024

Kathryn Bracho and her husband and two sons group selfie in the mountains

Kathryn Bracho, a dedicated mom from Green Bay, Wisconsin, has been diligently saving with her husband for her 15-year-old and 12-year-old sons’ higher education with the Edvest 529 College Savings Plan. Like many parents, she was acutely aware of the rising costs associated with higher education and wanted to ensure her sons had a solid financial foundation for their futures.

I sat down with Kathryn to discuss her experience with Edvest 529, the advice she had for other parents, and the benefits she has seen from her saving efforts.

Starting Early: A Smart Move

Kathryn’s journey with Edvest 529 began in 2016 after hearing from other parents about the significant expenses involved in pursuing a college degree. Recognizing the importance of starting early, she opted to open an Edvest 529 college savings account sooner rather than later. "The earlier you start, the better," Kathryn emphasized, underscoring a crucial lesson for all parents.

Thanks to the power of compounding, contributions made when a child is young can accumulate significant earnings by the time they reach college age. Compounding can create a snowball effect of savings and help reduce a family’s financial burden when tuition bills come due. Additionally, starting early allows for smaller, more manageable contributions over time, making it easier for families to incorporate saving for education into their regular budget without feeling overwhelmed.

A Seamless Setup

Setting up the Edvest 529 accounts was a breeze for Kathryn and her husband. She found the website user-friendly and had both accounts set up within ten minutes. "It was easy," she said, highlighting the convenience of the process. The ease of opening an account significantly influenced her decision to choose Edvest 529 over other investment and college savings options.

The simplicity of the new account setup process is one of Edvest 529’s key strengths. The online platform is designed to be intuitive and accessible, even for those without extensive financial planning experience. Edvest 529 offers excellent customer support in many different languages as well as free, one-on-one appointments with a college savings specialist to answer any questions families might have when opening an account.

Wise Investment Choice

Kathryn saw the wisdom in choosing a 529 plan over other types of investment accounts. "Putting money in a 529 plan just seemed wiser," she explained. "The people who run this account know what we’re going to use it for and when we’re going to use it. They have that planning behind it. It makes me feel better." This trust in the expertise of the Edvest team gave her peace of mind, knowing that her sons’ educational funds were being professionally managed specifically for higher education expenses.

Putting money in a 529 plan just seemed wiser. The people who run this account know what we're going to use it for and when we're going to use it. They have that planning behind it. It makes me feel better. -Kathryn Bracho, Edvest 529 Account Owner

One of the major benefits of a 529 plan like Edvest is that they are designed specifically to help families save for future education expenses. For example, if an Account Owner chooses to invest their contributions in an Enrollment-Year Investment Portfolio, their asset allocation automatically adjusts over the years to become more conservative as their student’s enrollment year approaches.

For Kathryn, the Edvest 529 plan can be summed up in one word: "reassurance." Knowing that experts are managing her portfolios gives her peace of mind. "They allocate the money at the right risk level for the right time," she said, highlighting her confidence in Edvest’s Enrollment-Year Investment Portfolios.

Additionally, Edvest 529 offers triple tax benefits that other types of savings and investment accounts do not. Wisconsin taxpayers can qualify for a state income tax deduction on contributions and benefit from tax-deferred growth on earnings. Also, when funds are used to pay for qualified higher education expenses, earnings are 100% tax-free.

Strategic Saving

Kathryn and her family devised a strategic approach to saving. Because they opened their second son’s account earlier in his life, they decided to contribute a little more to their older son's account to make up for lost time. This thoughtful planning helps ensure that both boys will have sufficient funds when the time comes.

Both sets of grandparents also play a crucial role in the boys' savings journey, contributing to their 529 accounts for birthdays and Christmas. "It was really nice to be able to send them an email with a link they could click, and it was easy for them," Kathryn noted. The simplicity of the gifting process made it simple for extended families to contribute, adding to the collective effort to help achieve the family's college savings goals.

Flexibility for the Future

Kathryn anticipates that saving in a 529 plan will provide her sons with flexibility for their future educational choices. "They don't really know yet what they want to do after high school, so what's nice about the 529 is that they can use it for different types of higher education institutions," she said. This flexibility ensures that the boys can pursue their dreams, whether at a traditional college, a trade school, or another educational path.

Advice for Other Parents

Kathryn’s advice to other parents is clear: start saving as soon as possible. "You can make [saving in a 529] part of your regular budget, you don't have to think about it too much, and having that money set aside with all that time to grow at the beginning is so much better than trying to start saving when your kids are teenagers," she advised. She loves having the reassurance of knowing that funds can accumulate over time and alleviate her stress of trying to save large amounts later on.

Photo of Kathryn Bracho

Kathryn’s experience with Edvest 529 is a testament to the benefits of early, strategic, and flexible college savings. Her story is an inspiring example for other parents looking to help secure their children's educational futures. Thank you, Kathryn, for sharing your experience with Edvest 529!

We Want to Hear Your Story

Are you an Edvest 529 Account Owner with a story on how saving for college has impacted your child or grandchild’s life? We want to hear and share your story! Email Chelsea Wunnicke at chelsea.wunnicke@dfi.wisconsin.gov or Cheryl Rapp at cheryl.rapp@dfi.wisconsin.gov, with your story, and we will be sure to reach out.

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To learn more about Wisconsin's Edvest 529 College Savings Plan, its investment objectives, risks, charges and expenses see the Plan Description at Edvest.com. Read it carefully. Investments in the plan are neither insured nor guaranteed and there is the risk of investment loss. Wisconsin taxpayers can qualify for a 2024 state tax deduction up to $5,000 annually per beneficiary, for single filer or married couple filing a joint return, from contributions made into an Edvest 529 College Savings Plan. Married couples filing separately may each claim a maximum of $2,500. Prior to investing, check with your home state to learn if it offers tax or other benefits such as financial aid, scholarship funds or protection from creditors for investing in its own 529 plan. Consult your legal or tax professional for tax advice. If the funds aren't used for qualified higher education expenses, a federal 10% penalty tax on earnings (as well as federal and state income taxes) may apply. Consult your legal or tax professional for tax advice. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributor and underwriter for the Edvest 529 College Savings Plan.

This testimonial was provided by an Edvest 529 account owner(s), and no direct or indirect compensation was given in return. No material conflicts of interest exist on the part of the account owner(s) giving the testimonial, resulting from their relationship with TIAA-CREF Tuition Financing, Inc. Results experienced by the account owner(s) may not be representative of the experience of another/other account owner(s), and there is no guarantee of future performance or success.

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