The Backer platform is designed to make it easy to create a tax-advantaged investment account called a 529 Savings Plan. Any growth in value of the account is free of taxes and can be withdrawn tax-free to pay for a child’s education costs – just like a retirement account for college. In the same app, gift and donation tools can make it easy for friends and relatives to contribute to the same account.
Many parents worry about how to pay for college for their “millennial” children. Yet of the 35 million U.S. families that want to save for higher education, only 16 percent are saving with a tax-advantaged 529 savings plan, and of them only 1-2% are getting help from family and friends.
Since its debut in 2017, CollegeBacker has helped American families invest over $20M in 529s, 40 percent of which has come from family and friends.
Hear how founder and CEO Jordan Lee developed his “big idea”.