# Paying Grandchild's Tuition at 71

> Grandparents at 71 use 3 ETFs to fund grandchild tuition without risking retirement portfolio.
- Title: Paying Grandchild's Tuition at 71 · 24/7 Wall St. | Shortify
- Summary: Grandparents at 71 use 3 ETFs to fund grandchild tuition without risking retirement portfolio. Grandparents at 71 can fund grandchild tuition payments using…
- Keywords: grandchild tuition, etf, retirement portfolio, tuition payments, shy, spym, spmd, tuition tax break, gift tax, retirement planning, Paying, Grandchild's
- Source: 24/7 Wall St. — https://247wallst.com/investing/etf/2026/10/20/paying-a-grandchilds-tuition-at-71-every-payment-comes-out-of-a-portfolio-that-still-has-to-last-these-3-etfs-fund-it-on-a-schedule
- Author: Ryne Mauck
- Published: 2026-10-20T21:03:23+00:00
- Read time: 1 min
- Topics: grandchild tuition, etf, retirement portfolio, tuition payments, shy, spym, spmd, tuition tax break, gift tax, retirement planning
## Tuition Payments from Retirement Portfolio
Every tuition check for a grandchild shrinks the same retirement portfolio that must fund the rest of retirement.
## Tax Break for Grandparent Tuition Payments
Tuition payments to schools are not treated as gifts under 26 U.S.C. § 2503(e)(1) and (e)(2)(A).
## Three ETFs for Tuition Payments
The iShares 1-3 Year Treasury Bond ETF (NASDAQ:SHY), SPDR Portfolio S&P 500 ETF (NYSEARCA:SPYM), and SPDR Portfolio S&P 400 Mid Cap ETF (NYSEARCA:SPMD) fund tuition payments.
## SHY for Next Bill Payments
SHY tracks short-term U.S. Treasuries maturing in one to three years with a 0.15% expense ratio.
## SPYM for Payments Years Out
SPYM covers payments several years out with a 0.02% expense ratio and 1.25% dividend yield.
## SPMD for Furthest Payments
SPMD holds mid-sized U.S. companies with a 0.02% expense ratio and 41.87% five-year gain.
## Trade-Offs for Tuition Funding
SHY may decline in price when interest rates rise, and stock funds can drop before moving money to stable funds.
## Tuition Funding Strategy Works
The strategy ensures tuition payments are covered without risking retirement savings.
## Key takeaway

Grandparents at 71 can fund grandchild tuition payments using three specific ETFs to avoid depleting retirement savings.