I'm 25 now and I have a baby girl due in 6 weeks. My husband and I want to set up an account for her college education. I'm not sure which type of account would be best for that. I was thinking of maybe a CD, a 529 college saving plan or a normal savings account. What is the best type of account to set up for a college savings?|||College is insanely expensive now. I鈥檓 a single mom; there aren鈥檛 a whole lot of jobs that allow me to take care of myself, my son, and go back to school. With a new baby on the way, you've got a lot of planning to do.
Don't go with a savings account, you are taxed on the earnings. 529 is the way to go as the earings are tax free, I've made 232% in bonuses and earnings since I opened mine last April though Ohio's 529 plan.
There are TONs of funds out there, many not so good. www.upromise.com has a good list, plus you can save by grocery shopping and buying online. I live in Ohio, so I went to http://www.collegeadvantage.com for my 529. I put $30 in 4/23/09, got a FREE referral $25 bonus for signing up with a friend鈥檚 referral number (mine is 2478182 if you want to get $25), and since then my $30 has turned in $69.61 as of today 10/20/09! I've got about $10 in upromise funds. Pretty good return for $30, I think! I think if Mom's stick some money in a fund in the first year or two, even if every other penny goes to household and retirement until the baby is 18, there should still be sizeable returns on what you originally put in. Maybe ask for 529 investments as baby shower gifts! There are bond funds available in 529s if you don't want to risk the stock market.
Congrats on your baby and happy saving!|||A 529 because it offers several investment choices and tax benefits.
To find out the best way for you, go to
savingforcollege.com|||well my daughter is 21 ,college senior....we purchased cds along the way that came due in each 6 month period of her college career.....that worked out great....just had money taken out of wife and my checks ....never missed it...never needed it....|||There are several things you need to do first.
1. Are you putting away at least the company match to your 401K?
Could you put the maximum?
2. Do you have 6 to 9 months put away in savings in case one of you loses their job?
3. Do you have credit card or student loans that need to be paid off?
4. Do you and your husband both have a ROTH account at a discount brokerage? If not, that ROTH money can be used for college expenses penalty free.
5. Have you paid off your cars? And have funds to buy a new one in cash? You'd be surprised how many people never finance cars.
6. Do you have deductible IRA's set up at a discount brokerage?
7. Do you have a cd account for money for money for your next down payment on your home?
Then, and only then, are you ready for a college savings plan.
/|||I just signed up my little baby girl for this program that saves money for you in a 529 plan, and you don't need to deposit anything.
When you shop for gas and grocery and stuff the retailers give a percentage to her college fund. You can read about it here: http://us.my-freebie.com/free-college-fu鈥?/a>
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