college savings?

fusionbride · June 2014

Has anyone started? Are you using a 529 plan or something else? Your own state 529 plan, or a different one? Tips for figuring out the best plan?

mb314 · June 2014

We set up a 529 Plan for DS. I have some investments with an investment bank and I set it up through them.

ashiscute · June 2014

Both of mine have a 529. You can check with a financial adviser.

MommaHen1984 · June 2014

We set up one earlier this year as well. I work for a financial institution so I used the brokerage rep through them, but we chose an American Funds plan if that helps. For ours, you can add monthly or lump sums. We do lump sums, whenever DS gets money for birthday, holiday, etc., it will go in there. Until hes actually old enough to figure out he wants to keep the money that is!

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spring_time · June 2014

We have a 529 for each of our kids through our state. There are sometimes some tax breaks by going through your own state. I am also pleased with the returns.

One thing to check out is penalties for withdrawals for non-education expenses. I believe it is a 10% penalty plus any taxes. However, in our 529, you can withdraw the amount of any scholarships or grants received without having to pay the penalty. You can also transfer it to family members without incurring penalties.

brachysira · June 2014

We have a 529 for DD and will start one for new baby, although where funds will come from for his, I am not sure... I would question an investor who does not tell you the benefits of 529s. If you are not saving for retirement, an IRA or 401K at work might be a better investment. If you are comfortable with retirement, 529s do not tax interest when you spend on education whereas other investments do, which is a big advantage. We are using our state 529 because it is well ranked and because there are also state tax advantages for residents using the state plan.

=Lee=B · June 2014

We are in Canada so it is a tad different here but we have a Register Education Savings Plan. My husband started it right when she was born. We add to it monthly and her grandparents add to it monthly. Our government matches a certain amount yearly (with a lifetime max). My husband (an engineer) likes numbers so he has calculated how much is enough but not too much to add yearly to max out he government matching and to ensure there is enough for college/university when she needs it but not an excessive amount (money that would have been better invested elsewhere).

sschwege · June 2014

We have a 529 through the state. Any money they receive for birthday/Christmas goes in there. I know DH's parents set up a separate 529 for our kids as well.

Beth.1212 · June 2014

We are using an out-of-state 529 plan. I think we're using Ohio b/c their fees for the Vanguard index fund are pretty low, and that's where we put most of LOs money.

nikkisun54 · June 2014

MommaHen1984 said:

We set up one earlier this year as well. I work for a financial institution so I used the brokerage rep through them, but we chose an American Funds plan if that helps. For ours, you can add monthly or lump sums. We do lump sums, whenever DS gets money for birthday, holiday, etc., it will go in there. Until hes actually old enough to figure out he wants to keep the money that is!

This. We don't put anymore money in monthly at this point because realistically, we already invest a ton of money for daycare. A great piece of advice as got was that once DS's daycare balance starts to go down (after two, if you use a daycare provider, that is), to take the difference and begin putting it in their college savings each month. You're already spending the money so you won't miss it if you institute the process early.

PerfectMommyIdeas · June 2014

Hello, We just put aside $10 a week in our son's account along with college savings fund.

MattysGirl81 · June 2014

We have 529s for both boys. I think one is the Utah plan and the other is the Virginia Plan. Neither one requires that they attend school in that particular state.

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