# How to Build a 'Launch Fund' for Your Kids or Grandkids
Financial experts recommend several strategies for helping young adults achieve financial independence, according to Kiplinger.
One approach involves using 529 plan rollovers. These accounts, traditionally used for education savings, can now redirect unused funds in new ways. The rules surrounding 529 rollovers have expanded, creating fresh opportunities for parents and grandparents to direct education savings toward broader financial goals for young adults.
Custodial accounts represent another tool in the toolkit. These accounts allow parents and grandparents to set aside money for minors, with the account holder managing the funds until the beneficiary reaches legal age. Once the young adult takes control, they gain access to resources that can fund various life milestones beyond education.
Kiplinger's reporting indicates that financial experts view these vehicles as part of a comprehensive "launch fund" strategy. The concept centers on equipping young adults with accessible capital and financial resources to support independence during critical early career and life-building years.
The article suggests that parents and grandparents face choices between education-focused savings vehicles and more flexible accounts that allow broader use of accumulated wealth. The timing and structure of these contributions matter for tax efficiency and the young adult's ultimate financial flexibility.
Beyond the specific mechanisms of 529 rollovers and custodial accounts, experts emphasize intentional planning around how and when young adults access funds. The goal extends past simply accumulating money to structuring that wealth in ways that genuinely support financial independence rather than creating dependency.
Kiplinger's coverage reflects growing attention to the transition period between childhood and full adult financial responsibility, recognizing this phase requires dedicated planning and appropriate financial tools.