If you were gifted money for your children

dbryson

would you put the lump sums in their 529 funds or would you split between their 529 and open a mutual fund account for them to share?  I'm thinking the later but I'm not great at this kind of thing.  Or would you do something else?

TIA!

 

(DH's uncle who passed away left the boys money intended for education)

myrall

Unless you find a no-load mutual fund, I'd think you were better off putting the money in the 529 accounts. Lots of mutual funds are loaded with penalties for withdrawing the money early. If you're wanting an interest-bearing account, you could try an IRA or a CD at a credit union or something - but keep in mind that there are caps as to what you can put in some of the accounts. 

rara855

529 or a Roth. You can start a Roth for them under you or your husbands name. It's great to have for the purpose of using it for them later in life. Just in case they decide in a military career or something that they don't go the traditional college route. I would talk to your financial advisor and if you don't have one you I would call around and get one. We love our guy. He has helped us hash out the best thing to do for ourselves and Jackson. 

Mrs. Theobald

Not sure how much money they were gifted but you can only put so much per year in a 529 plan.  

Kerrin

Any money the kids receive goes to their 529 accounts.

Janimal

Our investment strategy for college AND for our retirement is to make sure we are diversified.  We have a 529 plan for DD and will have one for this LO, but it's not the only plan we have to save for their education. 

Depending on how much money you are talking about, and how confident you are in your investment strategies overall, it would seem wise to me to talk to a financial adviser.  If you are already funding a 529 plan, depending on your level of funding, it might be wise to put this money somewhere else.  There are tax advantages to the 529 plan but if the money is NOT used for education, you lose those advantages.