community

all boards


birth clubs



my blog

Sort:
12-09-2012 at 6:59 PM
RockyRoad3
Not Ranked
Joined on 10-04-2011
5,304 Points
RockyRoad3 is not online. Last active: 05-23-2013, 8:40 PMNewbie

saving for college

Has anyone started some kind of savings plan to fund college?  We've been researching some options and can't decide what is best.  A 529?  Taking out life insurance and using the cash value?  Has anyone decided on either of these, or something entirely different?

Thanks :o) 


 Baby Birthday Ticker Ticker 
12-09-2012 at 7:18 PM
mamaHippo2...
Not Ranked
Joined on 04-21-2012
16,302 Points
mamaHippo23 is not online. Last active: 05-23-2013, 7:42 PMBronze
My FIL opened an account in our son's name with a thousand dollars to start and then we add a little bit each month as we can afford. We try to do at least $50/ month but it depends. Also if people send him money as gifts we put that in the account as well.

 
12-09-2012 at 7:25 PM
CLLDLL
Not Ranked
Joined on 08-22-2011
33,955 Points
CLLDLL is not online. Last active: 05-23-2013, 9:31 AMSilver

I work for an insurance company.  So I can share what I know about that.   

Depending on what type of policy you buy, some or all of your cash value is guaranteed.  That means even if the stock market crashes you will still get your money. (As long as the insurance company is still solvent anyway!) Buying insurance now guarantees your LO the right to keep that insurance in the future, even if he/she has a serious illness later.  Sometimes it even guarnatees him/her the right to buy more insurance later without undergoing any health testing/questionaires.  The downfall is that life insurance with a cash value is more expensive than term insurance with out cash value.  So if LO ends up not needing the cash (gets a scholarship, doesn't go to college, etc.) it will be more expensive than it would have been to just get term life insurance and put money in a 529 or a CD. 

I don't know as much about 529s, but I think they are basically a glorified money market account.  You contribute with post-tax money so you don't pay taxes on the gains as long as you use the money for college or other stipulated uses at the stipulated time period.  I believe some states have tax benefits if you are contributing.  The risk is that they are usually linked to something like the S&P 500 so you are taking the risk of the market crashing and you losing your money.

With DS1 we have both a life insurance policy and a few CDs that we've opened/rolled over through the years.


 Baby Birthday Ticker Ticker  Baby Birthday Ticker Ticker 100_0448_zps84e6c3b5 
12-09-2012 at 7:59 PM
Sami519
Not Ranked
Joined on 12-09-2010
1,957 Points
Sami519 is not online. Last active: 02-01-2013, 11:43 AMNewbie
we have a 529 for each of the boys.  We liked that they were for education only and that if we decided to send them to private high school (or earlier) we could use it for that too.  And if either decided not to go to college they can put the account into someone elses' name (ie. their kids or each other).  My brother is a financial planner and told us that 529s were the way to go.  And DS#1 has had one for just over 2 years and it's doing really well on the investment side of it.

Preston!
Lilypie First Birthday tickers 
12-09-2012 at 8:03 PM
LoveBeingA...
Not Ranked
Joined on 01-04-2009
Jacksonville, FL
12,003 Points
LoveBeingAWife33008 is not online. Last active: 05-16-2013, 7:46 PMSilver

mamaHippo23:
My FIL opened an account in our son's name with a thousand dollars to start and then we add a little bit each month as we can afford. We try to do at least $50/ month but it depends. Also if people send him money as gifts we put that in the account as well.

All of this exactly.


Lilypie First Birthday tickers 
12-09-2012 at 9:16 PM
g8trkim
Not Ranked
Joined on 09-18-2007
Tampa, Florida
22,371 Points
g8trkim is not online. Last active: 05-23-2013, 11:32 PMGold

Sami519:
we have a 529 for each of the boys.  We liked that they were for education only and that if we decided to send them to private high school (or earlier) we could use it for that too.  And if either decided not to go to college they can put the account into someone elses' name (ie. their kids or each other).  My brother is a financial planner and told us that 529s were the way to go.  And DS#1 has had one for just over 2 years and it's doing really well on the investment side of it.

Basically all of this for us.


Lilypie Fourth Birthday tickers Lilypie First Birthday tickers 
12-10-2012 at 6:34 AM
jennygirlm...
Not Ranked
Joined on 04-06-2006
Philadelphia
7,488 Points
jennygirlmt is not online. Last active: 05-23-2013, 4:36 PMSilver
We use a 529 which our financial planner agreed with. We set up automatic monthly payments then add any money they are given as presents that isn't earmarked. Sometimes my family will designate it for something special like a toy, activity, etc.

 Baby Birthday Ticker Ticker  Baby Birthday Ticker Ticker 
12-10-2012 at 9:56 AM
Jimsgirl58...
Not Ranked
Joined on 01-02-2007
New England
9,075 Points
Jimsgirl5821 is not online. Last active: 03-17-2013, 7:44 PMSilver
We have one of those 529 accts for DD and a savings account. We out in $50 a week to the savings plus whatever money she receives as gifts. When we get a good build up of cash in savings we transfer it to the college fund. She is 3 yo and has a good amount already. We just opened a savings acct. for DS and are doing the $50 a week for him as well. When he has a good chunk of money we will also open a college fund for him. We also tell our parents to get savings bonds as gifts when they ask us what to get ;)
 
12-10-2012 at 10:47 AM
Ladynikon
Not Ranked
Joined on 02-22-2009
Winchester, VA
42,045 Points
Ladynikon is not online. Last active: 05-18-2013, 1:43 PMSilver
nope. We haven't started a college fund for any of our kids as of yet. 

Image and video hosting by TinyPic  Baby Birthday Ticker Ticker 
12-10-2012 at 11:19 AM
brittany&d...
Not Ranked
Joined on 12-31-2011
2,483 Points
brittany&dain is not online. Last active: 05-21-2013, 11:29 PMNewbie
We opened up a savings account and try to put between $50-100 in it each month, also any money he gets as gifts or in cards goes into his account. Also I get paid biweekly so any money that I have left after those two weeks I put into his account 

 Baby Birthday Ticker Ticker 
Hot Topics

New dad or dad-to-be? Chat with other dads here!
Visit the Dads & Dads-to-be board

Need baby shower inspiration? Get ideas here!
Visit the Baby Showers board

Chat with other crafty moms here!
Visit the Crafty Moms board

search boards

choose another board