Gerber life college plans

PeachsMama

I've started looking into it because it's very affordable for the end result. Anyone have any first hand experience with them? The reviews are all great but none from people who've actually made it to the end. They're all from people who just signed up.

Recommendations for other college fund saving plans?

cagoldi

We won't be doing it. We're just going to use CDs and stock for LO's college savings.

If you want a tax-advantaged savings vehicle you'll have to consider a 529 or Coverdell account.

The Gerber plan is different than a lot of life insurance plans in that it is an endowment policy. Meaning the insured does not have to die in order for the benefit to be paid. Since that's the case, the beneficiary will be taxed on the payment received.

So if you're looking at your premiums and thinking they look great for the amount you'll get after 18 or 20 years, you're right. But when you consider the bite that taxes are going to take out of it you can see how you'll end up with a lot less than the payout.

ETA: missing a word

PeachsMama

Thanks for the advice! I work at an investment back but our guy that specialized in college funds left while I was on leave. Hopefully they hire someone soon so I can get it done. I dont want to put it off and never do it.

AlisonM12

As I understand it, it's just a whole life insurance plan. I'm betting you could get a better return in your money by investing in something else, like mutual funds. Also, the tax advantages of other college savings options would be more beneficial. All IMO.

inlove0509

Ok this might be the silliest reasoning ever, but I refuse to look into the gerber plan b/c I think their onesies are cheaply made with rough material and overly priced. I want nothing to do with Gerber if that's the product they stand behind. I'm sure this is extremely flame-worthy and very shallow reasoning.

CJS2011

inlove0509 said:

Ok this might be the silliest reasoning ever, but I refuse to look into the gerber plan b/c I think their onesies are cheaply made with rough material and overly priced. I want nothing to do with Gerber if that's the product they stand behind. I'm sure this is extremely flame-worthy and very shallow reasoning.

Wow, I must be the shittiest mom ever then, because I feed my baby Gerber formula. Gasp.

Linny0316

Don't buy your insurance through a baby food company. Also, whole life policies are a bad investment. Check out Dave Ramsey for all the info about this. His site has some endorsed local providers that can help educate you about the best way to save. Always be sure you know everything about what your investing in.

AlisonM12

Linny0316 said:

Don't buy your insurance through a baby food company. Also, whole life policies are a bad investment. Check out Dave Ramsey for all the info about this. His site has some endorsed local providers that can help educate you about the best way to save. Always be sure you know everything about what your investing in.

Love Dave Ramsey! Yay for being "weird"!

Ashleyfurillo

We went with the 529 plan as well, we have friends with older kids and they all recommended it

inlove0509

CJS2011 said:

inlove0509 said:

Ok this might be the silliest reasoning ever, but I refuse to look into the gerber plan b/c I think their onesies are cheaply made with rough material and overly priced. I want nothing to do with Gerber if that's the product they stand behind. I'm sure this is extremely flame-worthy and very shallow reasoning.

Wow, I must be the shittiest mom ever then, because I feed my baby Gerber formula. Gasp.

I didn't realize Gerber made formula! I haven't liked some Gerber products so I naturally am skeptical of trying anything else Gerber. But I'd never judge anyone else for using Gerber and certainly would never want any mama to feel "shitty" for doing so. You are feeding your baby... Makes you a responsible, great mama in my book!

PeachsMama

Ashleyfurillo said:

We went with the 529 plan as well, we have friends with older kids and they all recommended it

That's good to know. See no one (and I mean NO ONE) I know has ever set up or used a college fund.. It's just not something that's done in our area. So I don't know anyone personally who has plan xyz and loved/hated it! It's a big financial commitment and I just want to be sure we make the right choice for Matthew and future children. Thank you ladies for your advice!

SittingOnAMtnTop

Agree with PP, go with a 529 plan. Google the name of your state and "529 plan" or something along those lines. You should be able to set one up online. All you need is your LO's social.

3Dewdrops

inlove0509 said:

Ok this might be the silliest reasoning ever, but I refuse to look into the gerber plan b/c I think their onesies are cheaply made with rough material and overly priced. I want nothing to do with Gerber if that's the product they stand behind. I'm sure this is extremely flame-worthy and very shallow reasoning.

We wouldn't consider it because we boycott Nestle and Gerber is a Nestle company.  That may be even more flameworthy.  

SamanthaPo

We have a 529 plan, but it is in my name with SO and LO as the beneficiaries. If LO doesn't benefit from the plan then maybe her siblings will. If not, then we agreed to maintain it and pass it along to grandchildren. As long as someone uses it I will be happy.