Posts: 59
5/6/08 5:21 P

Talking with an investment pro is very helpful. That's who we spoke with when we made the decision to use a Unified gift to a minor. We told him of our situation and he explained the options. We decided the the unified gift to a minor worked for us. Everyone has different goals and different acceptable risks. I too would recommend speaking with a pro to see what fits your lifestyle. We started our plan for our daughter when she was about a year so I understand what you are saying about not thinking about scholarships but that was a point our pro brought up too. Good luck. You'll find what is right for you I'm sure.

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5/5/08 8:41 P

Thanks, no we haven't yet worked with a professional, however, my husbands BS is in finance... for whatever that's worth.
Yeah, I like my DAve Ramsey and did look into the ESA like he recommends, but we kinda want to put in more than 2000 a year, so my husband didn't want to go with that. Thanks for the input!

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5/5/08 5:16 P

OK, I have to admit that I'm pretty new to this area of "investing". I like what Dave Ramsey has to say about 529s. If you meet the income requirements, I would go for an "Education Savings Account" rather than a 529.

Here's what else I know about the ESA:

it grows TAX FREE
you can save up to $2000 per child, per year

If you don't qualify for an ESA based on your income, then only choose a 529 plan that leaves you in charge of the mutual fund choices. Some will limit your options to a couple of different mutual funds. Some will automatically change your investement types based on the age of your child - again out of your control and not necessarily what you would choose.

Are you speaking with a licensed tax/financial professional? What do they have to say?

This is a big decision and SO AWESOME of you to think about it. However, I wouldn't try to make this decision on my own. The risks are too steep for me (untrained) to do this without some local help.

Good luck!

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5/5/08 4:19 P

Wow, I never thought of my kid getting scholarship money (he's only 2. I like your idea of being able to use the money for something else...

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5/4/08 5:59 A

I am no expert but I have heard that the State of Virginia has some good education plans. I chose to use a Unified Gift to a Minor (or child). This way the money can be used any way we choose. If my kids get scholarships that will cover school they can use the money for a car, additional school expenses or keep investing for the downpayment on a home later. I felt this was more flexible for my family.

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5/3/08 12:45 A

thanks for explaneing.When my kids were small I just used a piggy bank.come to think of it things were much easier then. Kay

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5/3/08 12:00 A

I think 529 is scary. It is an investment account for your children's education.

I invested $500 in 3 different account before 9/11. I got one for each of my kids. Mine are from we. At one point I had under $300 in each. Now there is just over $500. I am so upset. I really hope things turn around. However, being in a recession is not going to help. Your better off putting it under your mattress!

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5/2/08 11:25 P

what is a 529 ?

kay

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5/2/08 9:51 P

Okay, there are so many different 529s, how do I figure out what to go with. I live in Ohio, I know I can use another states 529, but the Ohio one looks good to me, but what do I know? Any advice would be great, thanks.