College Savings Advice?

[my1stgn]

Im looking at starting a College Savings plan for my son siunce he is 4 months old now. Anyone doing this or have any good advice? I see there is various plans from 529 state plans to ESA savings plans. Obviously I want to get as much money back as I can for him and get the most amount of beniffits if any (ie tax benefits ect) I am looking at saving $100-$150 a month for him. Any advice would be appriciated!

 

[hmz029997]

Savings

Talk to an investment broker. If your goal is to only save for college (and not beyond that) there are several accounts that can maximize your gains. They are also tax deferred in many cases if you use the money only for college expenses.

 

[DavzGN]

Also remember it is easier to borrow for your childs education than it is for your retirement.

David

 

[BandAid]

Upromise.com you join and register credit cards and have family members sign up also,tons of companies support it and you always make money

 

[Evaddave 87gn]

Research this,

Most of the Financial planners will tell you to save that money for your retirement. Congress is constantly making college more affordable.

Evaddave

 

[Pronto]

Congress is constantly making college more affordable.

You've got to be kidding.

My advice is simply make regular contributions to a college savings plan ie; every month. You've got about 17 years so putting $50 a month should do it fine. In 17 years a public college should cost about 100k a year, maybe more. Save on.:wink:

 

[Evaddave 87gn]

As i said research!

No i am not kidding. One search on this returns the following:

These most frequently asked questions -- which comes first, college or retirement, and how can I save for both? -- are reflections of your love for your children. You want to do what is best for them. It sounds selfish to put retirement first, but it's a must. You owe it to yourself and to your children. Take the long view and envision yourself at age 75. Will you be resentful that you have to live a modest lifestyle? Will you feel that your children are not grateful enough?

From,
http://http://articles.moneycentral.../BalancingKidsCollegeAndRetirementSaving.aspx

Don't always assume that what you think is right is. RESEARCH!

Evaddave

 

[Evaddave 87gn]

Hyper link

Balancing kids' college and retirement saving - MSN Money

The link to the MSN Money.

Evaddave

 

[TexasT]

Im looking at starting a College Savings plan for my son siunce he is 4 months old now. Anyone doing this or have any good advice? I see there is various plans from 529 state plans to ESA savings plans. Obviously I want to get as much money back as I can for him and get the most amount of beniffits if any (ie tax benefits ect) I am looking at saving $100-$150 a month for him. Any advice would be appriciated!

Pay attention to the 'small print' on some of those state savings plans. I know when we looked into it there were restrictions as to where you could spend the money, and had to got to a state school. I'm sure your son will be greatful when the time comes to go and he has some fundage.

 

[BLACK6PACK]

Here in florida they have a prepaid college thing going on. You pay for college at today's prices and then 17 years from now, you're not paying 100k for a the same school.

 

[turbofabricator]

Feed your child LOTS of Wheaties and Steroids untill they are 16-17. Then watch the scholarships ROLL in!

For a great investment choice, look heavily into Mutual funds that have tax breaks for college. There are thousands of GREAT funds available to invest in for just that purpose. Stay as far away from an insurance agent as you can get. That is worth repeating............STAY AWAY FROM LIFE INSURANCE AGENTS!!!!!! Unless they have a series 6, 63, or 7 securities lisence (SEC) do NOT let them talk to you about ANY "savings" program. In fact, do NOT purchase a life insurance policy for your child, instead add a rider to your existing policy. If you do not have a Life policy look into one, but only Term insurance for a level term, of say 20 years. Whole Life and "most" Universal life policies are a SERIOUS rip-off. There are a few Variable life policies that work OK, but they are few and far between. Buy a Term policy and invest in a good mutual fund that meets your needs and has YOUR intrests in mind. If you have an insurance agent that tells you you can have "FREE" insurance.............RUN!!!.........RUN away FAST.......Turn the alky on and turn the boost up!!!!! You cannot get away fast enough!!!!!!!! Try Venita Van Caspels book "The Power of Money Dynamics" That is old but still true book. There are many outlets that can help you save.

Start by paying yourself FIRST!!! Start with 10% of your income. You can even get a high yield with only $50 a month. Start now and do NOT use a bank, either.

 

[turbo nasty]

Just make sure the whatever saving method, plan, etc is no load.

 

[imjoesnuffy]

ROTH IRA's can be used to cover college expenses as well.

I have been investing in two different Vanguard funds and plan to do just. I initially liked the idea of the 529 plans but there are alot of restrictions and gobs of fine print.

 

[PsYcHo GN]

Victor,

My daughter is 6 years old now. I've been purchasing Series EE US Savings Bonds through my work. I purchase a $5K bond every year, which will be worth $10K once it matures. Some employers offer it through deductions in your paycheck. If not, you can always purchase them through your financial institution or direct from the US Treasury.

NEVER put money into an account with your child's name on it, whether it is a kids savings or an account for college. If your child has a savings account, it will be tougher for them to get student loans and grants in the future.

This is the best investment for your child, not only for college, but financially for the future. If you own your own home with equity in it, do a cash-out refinance and use the money to purchase another property. The property you purchase will make the mortgage payment with the rent you will receive when you rent it out. Properties double in value every 10 years (proven historical statistics). Let's say in 10 years, the property is worth twice as much as you paid for it. Now you can do a cash-out refinance on that property to pay for your childs first class education and still own the property, which at that time will produce positive cash-flow. 20 years from now, it will be worth double again. At that time, you can give the property to your child and it will continue to produce income, which can be used to live off or used to invest in another property. :biggrin: