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Parenting & Farm Kids:  529 Plan-Savings Bond...  |
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Leezard
True Blue Farmgirl
950 Posts
Elizabeth
Novi
MI
USA
950 Posts |
 Posted - Dec 01 2008 : 2:38:17 PM
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My sister and I have been talking about what to get our new niece for Christmas, she mentioned a savings bond which I think is a pretty good idea. I've also been looking at the 529 plan for our state and trying to figure out if that might be a good option as well. Has anyone had any experience with a 529 plan? I know they're a little different in every state but what do you find to be the pros and cons so far? As a parent would you have a strong preference for savings bonds over contributions to a 529 plan? Obviously, if we decide to seriously consider the 529 route we will ask my brother and sister-in-law which they'd prefer, I'm just wondering what other parent's thoughts are.
Plus, I'm feeling remiss at not thinking of things like this for my first niece, my sister's daughter, so I'm probably going to be doing one or the other for her as well this year. It'd be so nice if the two of them had a good jump on money for college so they didn't have to take out all sorts of crazy loans.
http://ruby--slippers.blogspot.com/
www.leezard.etsy.com |
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UrbanChick
True Blue Farmgirl
331 Posts
Ayako
Atlanta
GA
USA
331 Posts |
Posted - Dec 02 2008 : 6:30:38 PM
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There is a consumer advocate here in Atlanta Ga with a syndicated talk show and I listen to him all the time. I have the link to his ideas for a 529 and a guide as to what to look for. Let me know if this helps you and if not I'll ask my husband what plan he put our daughter into. http://clarkhoward.com/liveweb/shownotes/category/1/34/281/380/
"Courage dosen't always roar. Sometimes courage is the quiet voice at the end of the day saying: I will try again tomorrow." |
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Leezard
True Blue Farmgirl
950 Posts
Elizabeth
Novi
MI
USA
950 Posts |
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La Patite Ferme
True Blue Farmgirl
623 Posts
Jenn
CA
USA
623 Posts |
Posted - Dec 03 2008 : 12:42:41 PM
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What a nice Aunt you are to make this gesture. But, definitly do your research cause I think there's a max on what can be contributed to the 529. $500 a year comes to mind.
As I recall I figured out it would take years and years of saving and it would only pay for one semester of college - maybe. That was my main problem I had with it. It might work well as a supplemental to what the parents are doing though.
Anyway, don't want to give financial advise, but I have a mutual fund for DD's college. I get to put away what ever I feel I am able to. So, some years are more than others. And, when g'parents give her money for college it goes in there as well.
You have a lot of options and sitting down with a financial planner would be a good idea. I think consultations are free and after the first of the year there may also be free seminars in your area.
I hear ya about the loans. DD and I visited a college north of us and I bought the admissions catelog. When i read the part that said $23,000+ for incoming freshmen I closed the book. Couldn't believe it. That's when we started talking about 2 years of JC to get all her undergrad requirements out of the way. No sense paying that kind of money so she can take freshman English, History, speech and the like.
Makes me sweat thinking about it, but she's a Sophamore in HS so I don't have a choice anymore. Hafta think about it. |
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KansasConnie
True Blue Farmgirl
69 Posts
Connie
Atchison County
Kansas
USA
69 Posts |
Posted - Dec 03 2008 : 1:01:05 PM
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For us the 529 plan is the way to go. We have them for our kiddos!
The plans vary by state, so be sure to check the local 529...although you don't have to invest in the plan managed by your state (going to another state may jeapordize your tax deductions eligibility however). In Kansas, the total contribution limit is nearly $300,000 per beneficiary (so we could conribute almost a million for our three kids--if we won the lotto!).
And another great thing is that ANYONE can contribute not just the "owner" (who is usually the parent or grandparent). So Aunties can contribute easily!
From the mom of three...I think it is a thoughtful idea!!
Kansas Connie |
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KansasConnie
True Blue Farmgirl
69 Posts
Connie
Atchison County
Kansas
USA
69 Posts |
Posted - Dec 03 2008 : 1:07:54 PM
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Sorry--forgot to mention that one of the cons could be in the initial investment for the start-up of the acct. I think Kansas requires an initial deposit of $250 or a monthly contribution.
However, the acct can have multiple beneficiaries so a person could invest for siblings easily. And if Kiddo #1 doesn't use her portion for college it can be rolled over tax free for Kiddo #2.
Kansas Connie |
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Leezard
True Blue Farmgirl
950 Posts
Elizabeth
Novi
MI
USA
950 Posts |
Posted - Dec 04 2008 : 07:51:00 AM
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Thanks so much for the comments! I appreciate hearing what others think about it, makes me consider things I hadn't thought about before. This is something I'll have to research a little more for our state and speak with my sister about her thoughts.
Thanks again, ladies!
http://ruby--slippers.blogspot.com/
www.leezard.etsy.com |
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Parenting & Farm Kids: 529 Plan-Savings Bond... |
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529 Plan-Savings Bond...
