College savings

katb2021

Hi. What do you do for your baby college savings plan? For the Florida moms, what do u think of Florida prepaid? What happens if your grown baby wants to go to a college outside of Florida? I m trying to debate if I should do the Florida prepaid or the regular 529 plan. I m leaning towards the Florida prepaid since u know u will have enough money once the child goes to college vs 529 plan is a risky investment similar to the retirement plans. But if the child will not want to go to a college in FL than what? 

cookinwithbaby

Do you have an accountant you can talk to? In Colorado, we get a tax break for the 529 so it made it more worth it for me. If we didn't, I would consider more options like not just 529 but maybe saving in my account earmarked for my kid. Also depends if you expect gifts...a 529 plan is less awkward than asking someone to write a check to the parent's name.

swoff

I wouldn't consider 529 a risky option at all. If you invest the money in a low-fee index fund within the 529, it should grow as the stock market does. Over 18 years, that growth is massive. And you aren't taxed on the growth if it goes to education!

The analogy I've heard for the stock market is that it's like a yoyo going up an escalator. There may be some years where it loses value, but the overall trend is still up. 

I can't compare to the Florida plan you mention, but don't be scared to open a 529 or invest in the stock market. 

knottie3e2400041de90bfb

We do a 529 for each of our kids. My wife also does it.

In NY ... tuition, fees, room and board, books, supplies, and equipment required for enrollment or attendance at any eligible post-secondary school in the world. You can receive a New York State income tax deduction of up to $5,000 ($10,000 for married couples filing jointly).