Need help investing for college...Toddler

Question

Heys guys, thought I&#x27;d run this by some of covers best. &#xD;&#xA;We have a three year old and looking for the best way for us to invest or save for college. Thanks for your time and insight,,,

phat03 · Answer

Heys guys, thought I&#x27;d run this by some of covers best. &#xD;&#xA;We have a three year old and looking for the best way for us to invest or save for college. Thanks for your time and insight,,,

KOAJ · Answer

do you have a financial planner?if not, ask your friends who they usemeet with the guy, then set up a 529 plan and set up an auto deduct plan where you can contribute $XXX per month directly from your bank account without ever writing a check

phat03 · Answer

Mama made the call this afternoon with our money guy and a appt. next week.  Thanks KOA...

wallstreetcappers · Answer

Let me add that you dont NEED to use an expensive FP to do the work. Find a Fidelity branch near you, or a Scottrade branch and go with them. A Financial Planner will charge you heavy vig for doing little to nothing you cannot do yourself.

I say it is similar to paying 30 cents on a baseball line when you can find a 10 cent book if you look a little.

Add that a 529 plan LIMITS you quite a bit. We have discussed this topic before and there are really no investment options that cover every scenario..each one has problems, like a UGMA or UTMA or a 529 Plan or a Education Roth.

For me, I would rather just open an investment acct earmarked for the kiddo, put money in there and invest that way, then you have all the control over it and arent paying someone elses salary in the mean time.

There are benefits to a "prepaid" college plan if you think the kiddo will stay in the area to which you are contributing to.

If I were you I would go to that appt and get the scoop, all the details and decide what you want, but LEAVE the check book at home, dont feel pressured to sign up or let him choose a bunch of high fee A share mutual funds. Educate yourself, then decide.

depeche2 · Answer

Make sure you are saving for your retirement first. To a large extent, retirement accounts can also eventually be used for a child's education if needed. Education accounts can't be used for your retirement. If you qualify, do a Roth IRA. Contributions can be withdrawn at any time without penalty anyway.

If you're already maxing out retirement funds and still can afford, then go with a Coverdell if you qualify for the first $2,000 and a 529 plan for the rest. Savingforcollege.com has a lot of info.

PALLADIUM · Answer

Like KOAJ said go w/ the 529 and as Wallstreet said go low cost Vanguard, T Rowe Price etc.. The hack with buying A,B.C shares and making a broker money every time you invest and havin higher fees eating away at your growth. The fact that you maintain control of the asset with a 529 unlike a Custodial account is huge. As well growth is Fed Tax free and in some cases state tax free if used for College and or related expenses. While you are at it go to www.upromise.com a site that allows you to receive kickbacks on many everyday purchases which can be deposited into a 529. So you are getting free money which will grow tax free. I sold a house through a company that participated and received $2500 for a 529. As well you can have anyone that has an interest in your child's education sign up and set aside money each time they spend. Check out all the companies that give kickbacks you could literally pay for college if all your relatives signed up! https://www.upromise.com/viewAllCompanies.do

phat03 · Answer

You guys are great. Trying to covers all our bases. Thanks for the info.

Stuckey · Answer

Research all the 529&#x27;s out there.  Some states have some terrible plans.  Some have some very good ones.  There was a recent WSJ section about the best and worst 529&#x27;s.  There is a lot of literature out there.  Check out your state first to see their options as you could lose possible tax breaks if you go with another state&#x27;s  (it may very well be worth it, but do the research first).  Check out Virginia&#x27;s.  They have a pretty solid setup

pederson16 · Answer

[Quote: Originally Posted by KOAJ] do you have a financial planner?if not, ask your friends who they usemeet with the guy, then set up a 529 plan and set up an auto deduct plan where you can contribute $XXX per month directly from your bank account without ever writing a check&#xD;&#xA;&#xD;&#xA;[/Quote]&#xD;&#xA; &#xD;&#xA;that is correct, i am an FA and couldn&#x27;t have said it any better!&#xD;&#xA;who actually needs us?

Need help investing for college...Toddler

Hot Forum Topics