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SOFNEMSMA's Photo SOFNEMSMA Posts: 59
5/6/08 5:21 P

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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.

The greater danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.

Michelangelo


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5/5/08 8:41 P

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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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JULESGL's Photo JULESGL Posts: 9,609
5/5/08 5:16 P

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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!

Live like no one else, so later you can LIVE like no one else

"No man in the wrong can stand up to a man in the right who keeps on a-comin." - Texas Rangers

Dare to be a Linchpin - Seth Godin


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5/5/08 4:19 P

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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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SOFNEMSMA's Photo SOFNEMSMA Posts: 59
5/4/08 5:59 A

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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.

The greater danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.

Michelangelo


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KNICHOLS2's Photo KNICHOLS2 Posts: 645
5/3/08 12:45 A

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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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DBD398's Photo DBD398 SparkPoints: (25,917)
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5/3/08 12:00 A

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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!

Dawn

"The Lord bless you and keep you--the Lord make His face shine upon you, and be gracious unto you; the Lord lift up His countenance upon you, and give you peace." Numb. 6:24-26.


Go confidently in the direction of your dreams. Live the
life you've imagined. Henry David Thoreau


"Start by doing what's necessary; then do what's possible;
and suddenly you are doing the impossible." Saint Francis of Assisi




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KNICHOLS2's Photo KNICHOLS2 Posts: 645
5/2/08 11:25 P

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what is a 529 ?

kay emoticon

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5/2/08 9:51 P

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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.

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