Gerber college savings plan reviews?

bundymommy

Does anyone have the Gerber college savings plan/life insurance? DH and I are looking into savings plans for DD's college. I'm wondering if anyone here has it for any of their children. If so, how do you like it? We are planning on meeting with our financial advisor, but I'm just looking for some pros and cons from people who are starting savings. So far we only have a savings account that we make weekly transfers to, but I would like to start something that earns more interest.

TIA! 

 

MrsCase1

I don't know anything about the Geber plan, specifically. I do know that a 529 plan would probably be a great start! Your financial planner will be able to give you all the details.

amywalt1684

Mrs Case:

I don't know anything about the Geber plan, specifically. I do know that a 529 plan would probably be a great start! Your financial planner will be able to give you all the details.

This exactly. Ther Gerber plan is a waste of money. You would get a better return with a 529 or if your state has a college savings plan.

bundymommy

amywalt1684:

Mrs Case:

I don't know anything about the Geber plan, specifically. I do know that a 529 plan would probably be a great start! Your financial planner will be able to give you all the details.

This exactly. Ther Gerber plan is a waste of money. You would get a better return with a 529 or if your state has a college savings plan.

I would potentially get a better return with a 529 plan, but it's more risk than I'm willing to take. I know too many people who have taken a hit in their 529 plans in the last couple of years. I'm interested in the Gerber plan because there is less risk.

StefandTodd

I agree with the PP's.  But if you're truly interested in lower risk, you can still do better for yourself than a Gerber plan.  That just seems soooooo gimicky.

gy86

Many 529 plans have automatic age-growth options that start out high-risk then as your child ages, the funds are redistributed into lower-risk accounts.  However there have been several recent studies showing that these plans keep the money in too "high" of risk categories too late in the plan -- which is why some of your friends may have lost significant portions of their 529 acccounts.  This same phenomenon happens in a lot of retirement accounts too and is something to be wary of.

Also keep in mind timing is everything -- your friends with college-aged kids will likely have lost more in the past couple years (which I take to mean since 08-09) simply because that's what the market did. 

My advice would be to do the 529 -- but look into other states (not just your own) so you can get one that performs well with minimal fees.  Rather than do the auto-aging plan, you should work with a financial advisor to create your own mix of low/high risk options and then realloate/readjust funds on an annual basis as your child ages.  As your kid gets closer to college age, the majority of the 529 money needs to be put into low-risk, low-growth options just in case of economic downturn.