I currently reviewing college savings plans and was hoping that some of the insightful users of LS1.com could offer some advice. It seems that there are so many different options. How do I go about choosing one? :confused:
Printable View
I currently reviewing college savings plans and was hoping that some of the insightful users of LS1.com could offer some advice. It seems that there are so many different options. How do I go about choosing one? :confused:
INGdirect.com
Join The Military !! Worked for me. Hey!! WE WANT YOU...:ar: :uzi:Quote:
Originally Posted by Sassy Cassie
Alot depends on the age of the kids and obviously how much you make. Me personally, we put 400/month away considering it to be another car payment. After 5 years it really adds up. If you can't afford it, put 150/month away. It is amazing how you can find money when you need to.Quote:
Originally Posted by Sassy Cassie
My husband has deicated enough of his life to the service of this country. I'm not saying that my children shouldn't serve. I just think that our family has paid our dues and we'd both like to offer them other options.Quote:
Originally Posted by ramrod
We've got the means to put money away. I'm just looking for investments that will offer a higher yeild over time.Quote:
Originally Posted by nosfed
How many years until the first of how many is going to college? There are simple cd's all the way up to investing in say mutual funds with an aggressive growth, taking more risk of course. What we did was figure out an average college yearly cost including books, living, food etc... and then we figured out how many years and that told us how much to save. We then took that and invested some of it in low risk as we have time.Quote:
Originally Posted by Sassy Cassie
i think i figured if i put away 100 a month when my kid is borne, after the intrest, etc they'll have like 20-25k CASH for college.
I guess Ill be staying in GA and praying for HOPE
I have two children. My oldest is nine and my youngest is two. I've been looking over different plans (i.e. prepaid, 529, etc.) and I'm just not sure which would be the best option.
Damn... I wish my parents would have done that for me... but then again, then I wouldn't have worked so hard with the many jobs and orginazations and stuff.. and wouldn't have the experiences and qualifications I do... could go either way. Good luck with that.
well you have 9 years give or take. Do you have a 401k? Check and see if you can take a loan out on that for college. My place allows it and then I have to repay the loan with interest which in fact is paying myself back anyway.Quote:
Originally Posted by Sassy Cassie
I hear doing that is a bad idea that in the end you lose a little bit of money. Also some companies have to have it payed back by a certain time.Quote:
Originally Posted by nosfed
I don't have a 401k so that isn't an option for me right now.
Very true, you have to look into what your 401k offers. I would prefer to lose just a little bit of money in the long run by borrowing from myself then have to pay a large amount of money in the form of interest taking out a equity loan or a personal loan. If you can find a solid investment early enough with a good but safe return then it helps. That is why mid agressive mutual funds can be a safe investment.Quote:
Originally Posted by Bigrus
Sassy Cassie, check with your bank and even look into investment advisers as well. They can steer you in the right direction.
do what my parents did, tell them their own there own after high school if they want to go to college they will pay for them selves if they dont then its their choice
Oh, I had no choice... I HAD to go to college.. but I HAD to pay for it too... still not quite sure how that worked out.... but thats over and done with.. I survived to hear the first words out of my dad's mouth after I got my diploma was, "Well, you proved me wrong." :O WTF??
Quote:
Originally Posted by Sassy Cassie
My fiance, and have talked about that . We came up with this ... If our kids want college, simple (there taking a loan out like we did) We will support them in any aspect down payment on a home, paying for a wedding, or defin buying them a car, I have a degree, and I feel it opened the doors slightly for my career, but my fiance she has a MD. The practice she works at now payed off all her debt. My parents offered to pay for my schooling , but I turned them down knowing my heart belonged to The Army, and always will. Good luck wish you the best.
Sassy, you need professional help.
Oops that came out wrong. I mean you need a professional investment advisor.
I forgot how to tell you how I did it. When I found out my daughter was coming, I immediately went and put 20,000 in the bank for college.
By the time she was 21, this account had close to 80,000 dollars.
I started with US Savings Bonds (when my first - now ten - was born) At the time, bonds were one of only a few options that were tax-free when used for education. Now several other options are available. We have Educational IRA's set up for both kids, and I deposit the maximum in those accounts. Be careful with various IRA's because some will exceed your maximum amount allowed for tax deferrment status and you will end up paying taxes on the interest. What I mean by this is that there may be a maximum amount of say $1000 a year that can be deposited without penalty. But the amount is for ALL of these types of IRA's, so if you have one where you deposit $900 and one where you deposit $500, you've exceed the maximum amount by $400 and the government will tax/penalize you on that. So be careful that the IRA's you choose are not in the same category and cumulative for the maximum amount of deposit.
We continue to buy EE series Savings Bonds along with the IRA's, which you can do without worry. The "tax-free" status when used for education (you have to pay taxes on the interest if used for anything else) makes up for the interest rate on these types of savings (although they ain't that bad).
Lots of employers will have programs where you can have a set amount payroll deducted for Savings Bonds, and an IRA is just a matter of finding the financial institution you want. I used my checking/savings account bank for the IRA accounts and those amounts are deducted directly out of the checking account.
I'm lucky in the fact that both my kids have a trust fund from my parents, but I plan on paying for 100% of their college. The best thing, in my opinion, is to get the amount deducted from your pay automatically. That way, it is consistently being deposited and you don't find excuses for not saving. I mean, I'm a cop and I might make 72K this year. It's important that I SAVE for them NOW.
Good luck.
Jad, I'm right on the same page with you. My parents were so supportive in helping me pay for my education and I'd really like to do the same for my children. However, being that we're a single income military family, I know that we really need to plan ahead.
Right now, I'm leaning towards a state 529 savings plan. Congress recently passed a federal tax exclusion for qualified withdrawals on these plans so it seems like a pretty good way to invest. The only thing that is stumping me right now is allocating certain portfolio percentages. :brick:
Cassie,Quote:
Originally Posted by Sassy Cassie
The hard part is starting. I've heard good things about 529 plans, but we were rolling pretty good with what we've already set up. It seems like the NC University system has a website that suggests several different options for college-savings and 529 plans are one. I'm assuming you are planning on a NC (in-state) college/university. My brother went to a small private college (Wingate) in the late 70's and it was something like 12K a year then. Now it's closer to 25K a year. I heard Duke is now 45K a year, and Davidson College (near me) is not far off of that. The UNC state schools for in-state seem to hover around 7-9K a year. I have several qualifications for some scholarships for my children (because of my military and police service and my dad's) but I have long since planned on saving over 40K for each of my kids. Due to your husband's military service, you may want to investigate what opportunities you have for scholarships and maybe low-cost college tuition assistance. It's good that you are doing this now, it's never too early to start.
I don't know if this interests you, but I have a slight "cushion" set up with a life insurance plan. My wife and I set up a life insurance plan with a separate rider, that allows us to recoup all premiums paid if we cancel the policy at an eighteen year maturity. This equates to about 20K in funds, that we CAN obtain, if college costs get ridiculous. It's a consideration, and of course, that particular policy ends when you take the payment, but it allows another option. The policy is just a supplemental one, so it's a viable option.
Also, if you consider EE bonds, you purchase at half the face value. The bonds mature to full face value in eighteen years and maximum accural in thirty years (no more interest after thirty years). That means nothing if you use them for education, but I thought I'd add it.
BTW, I saw this today.
http://www.cnn.com/2006/EDUCATION/09....ap/index.html
I am NOT saving for that!!!! Talk about spoiled kids who need a lesson in reality. One of 'em is even quoted about what USED to be considered "spoiled" isn't really spoiled today. What the hell is next, a damn SALARY to attend college? These punks piss me the hell off. College is SUPPOSED to be about an education and formulating social/problem-solving skills. These are probably exactly the same kids who ten years from now will tout about their "suffering" through college and demand high paying positions because of their education and experience. What a damn joke.
HOPE and my daddy.
awwwwwwwww hell no !!!:toetap:Quote:
Originally Posted by crazy4jason28
He's always told me that he would help me.Quote:
Originally Posted by ramrod
Have him help you little girl when your ready to settle down in life. Maybe wedding, or a down payment on a home. By the way don't you have school today ??:toetap:Quote:
Originally Posted by crazy4jason28
whatever . you dont have to be an ass.Quote:
Originally Posted by ramrod
Oh! I am far from an ass sweety. I am just blunt I have a sister your age and I get down on her like the wrath. It's tough love.:) Just some advice you shouldn't be playing where wolves eat . There are plently of other forums where there are teens your age. I mean come on honey how old are you? Your profile said 17 under your avatar, My space stated 14.. trust me I am helping you get out while you can... There are monsters on here..:yup:Quote:
Originally Posted by crazy4jason28
hey cassie,
here in wisconsin, if a parent gets 30% or more disability from the military, the children and spouse get free tuition at the university of wisc or milw area tech colledge. (And you can see from my spelling that I would never make it.)
Check with your local V.A. regional office and see if you get any help being a military family.
steve
my $.02 - as someone previously mentioned, it would do you and your husband good to talk to a pro. Not neccessarily letting them invest your money for you but rather educating yourself on your options and their pros and cons.
Given the age difference of your 2 children, you'll probalby have long and medium term investments.
FWIW we opened IRAs / Roth IRAs in various stock funds for our son's education.
My wife and I are buying $1.00 scratch off lotto tickets once a week. By the time my son is 21, the odds are in our favor that we'll have enough winnings to send him to the best vo-tech school in the city.