College fund advice?

So we have a 2 month old little boy and we thought maybe we should go ahead and start saving for his college tuition. Any advice on who to go through? My sister has her two kids set up through College Savings plans of Maryland. She said it allowed you to use the account towards schools in any state where I guess most don't? I am just now starting to search so I thought I would see what some of you guys have had good luck with and any advice you might have. Thanks!

 

529 plans. google. every large house offers them. Get one as soon as you get a SSN.

 

We opted not to do the state plan. And I am very glad we did. I did not trust the Govt to keep their hands out of the pot until we made use of our investment and they could not. It went belly up 2 years ago and all the folks that had invested and not pulled out by a certain date lost it all.
I felt sorry for the folks with JRs that year.

Mine oldest will start in the fall.

We went with a KISS program (Keep it Simple, Stupid).

When we learned we were pregnant with the first, we hit up the Gparents, and aunts and uncles and asked them to put their change at the end of the day in a jar (every day)

Several people doing this over 18 years adds up into a nice savings acct. It wont cover 4 years, but the freshman year is pretty well covered without loans.

 

I've got a custodial acct set up with my investment guy. He takes $$$ every month and invest it.

As the custodial, I can use the money for college or really, whatever I need to regarding the minor listed on the acct.

The only real pitfall, when the minor turns 18, they have legal access to the money as well....if they know about the account.

My hopes are to not need it for school and be able to give her 100 grand or more when she turns 25.

 

529 for us. Very happy with it.

 

our 529 lost money during the housing collapse. The state (Illinois)
has changed the process since then. My best advice save as much as
you can. We got my daughter through with no loans , the scholarships
she won helped tremendously.

 

by this you mean investment and or trading firms? I use td ameritrade for my hobby trading.....i can call them and set it up through them or should i find a local personal investment firm?

First baby due in February and I've got $10k to invest for her......

 

ESA. Put in up to 2k per year. Growth is tax free.

 

Make sure you have access to it so you can spend it on bikes and racing before the kid needs it for school. I paid my own way through school and so can your kid. You know you will need the money for racing sooner or later.

 

Many states, like Michigan, offer a tax deduction to state residents for investing in their 529 plan. All 529 plan funds can be used at any accredited school in the US, so you can choose any state plan or choose one through your broker. If your own state has a good plan and a deduction, you have your answer.

Go to kiplinger.com and search 529 plans. They have a lot of good articles on the subject.

 

Our 529 has been growing nicely the past two years.

 

Make them pay for it them selfs,problem soled!

 

College fund? 4 year enlistment after HS and their undergrad is covered.

Would suck to put money in a locked up college fund and then realize 17yrs later that your kid has no business going to college.

Let them earn it themselves serving the country, they'll appriciate it more and get more out of college going in when their in their early 20s than right out of HS.

 

That brings up a good point, what if he doesn't end up going to college? What happens to the money with the 529 plans?

And my wife and I have student loans and they suck ass, we would like to at least lessen the load on him because its going to be way more expensive in 18 years.

Thank you guys for all the help, I have a bit of research to do before I pull the trigger.

 

You don't simply lose the money in a 529 if you don't use it for college.

 

529. We're in American Funds. The state of charter doesn't matter from a tax or usage standpoint. We're in Georgia but I think have the Virginia fund. One fund for two kids as well. If the kids don't go to kollege my understanding - haven't checked - is that the money can be used for trade school, technical, professional training as well. We put in a lump sum when number 1 was born. Probably ought to supplement it some now but it's grown nicely.

 

Look up the Vanguard 529 plan. Vanguard has some of the lowest expense ratios out there and the return has been very good.

 

BINGO. A big problem with raising children in one of the most privileged countries in the world is many think that is the norm rather than the exception. The military provides a great opportunity to see how other parts of the world lives and teaches appreciation for what we have here. It also gives kids a solid lesson in discipline, work ethic, and attention to detail.

 

+1. I have one for both my girls and encourage both families to donate instead of buying more toys (because they already have a ridiculous amount).

 

It has to be used for some type of educational purpose though. It can be passed to another member however.

This is the major reason I like custodial accounts much more. If your kid gets a scholarship, then you can use it for a wedding, or a marriage gift, or whatever you feel like.