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What is a good college investment plan? i want to set up a college savings plan for my son

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survivormama10

Asked by survivormama10 at 10:19 AM on May. 29, 2011 in Money & Work

Level 10 (492 Credits)
Answers (6)
  • We did it the old fashioned way, saved every penny we could from the time we found out I was pregnant with our first child. No 529 plans, no other investment plans. We concentrated on paying off our house early too and then took those funds previously allocated for the mortgage and socked those into our retirement and the college savings funds. Our oldest goes off to college in the fall, our youngest has about 8 more years ... we already have enough to pay for ALL of our kids' colleges. It takes discipline, that's all.
    Anonymous

    Answer by Anonymous at 10:24 AM on May. 29, 2011

  • t know the aswer ut I an steer u in the direction. Go to Dave Ramsey websight and ask The same question. Keep it short just like you did and it might get answered. Sory I couldn't furher. (beans and rice, rice and beans.)
    Kimkh

    Answer by Kimkh at 10:28 AM on May. 29, 2011

  • sory didn't realize half my letters weren't typed but the important part was Dave Ramsey websight.
    Kimkh

    Answer by Kimkh at 10:31 AM on May. 29, 2011

  • We're doing a 529. My mom is a financial advisor, so we followed her suggestion.
    mrsjon

    Answer by mrsjon at 10:32 AM on May. 29, 2011

  • It depends on your income. If you make less than $200,000 a year household income I think an ESA is a great place to put your money. An ESA (Eduction Savings Account) works like a Roth IRA. You can put up to $2000 a year per child on pre-taxed money. BUT when you take that money out, if you use it for educational expenses (books, tuition, and I *think* maybe dorms too?) then it's not taxed.

    Put the money into a mutual fund with a long term track record of averaging at least 10% or better. And yes there are hundreds of them that are like that. You just have to do a little research on it.

    If your income is more than $200,000 a year a 529 could be a good option depending on which State you live in. And also the UGMA is another option- the something gift to minors act. I can't remember what the U stands for. Talk to a financial planner for more information.
    Erica_Smerica

    Answer by Erica_Smerica at 12:28 PM on May. 29, 2011

  • Ditto Erica's answer
    tasches

    Answer by tasches at 11:11 PM on May. 30, 2011

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