r8rs4lf Posted February 12, 2007 Report Share Posted February 12, 2007 I just saw the trailing end of a story about saving up for a college fund for your kid(s). They talked about something called a 529 plan. I got the website and it said that Fidelity has taken over the 529 (at least in Cali)so it redirected me to a Fidelity site. Anyone familiar with this or have any better programs? Imma go over the site, just not right now. HERE! Currently I have a few CD's for my daughter who is 3 months old. I already opened an account at my credit union for her where I contribute to it on a weekly basis. I plan to continue to open CD's for her every $1K. Then when those CD's get large enough, I'll combine a few of them as one and continue on and on. I also tried to open an IRA account for her, but they told me she had to have a job to contribute to it so that was a no go. What else is out there for her? I'd like to make her life as easy as possible when she gets older since I didn't have much. I'd like to have her college education and her house covered at the very least. Quote Link to comment Share on other sites More sharing options...
wody Posted February 12, 2007 Report Share Posted February 12, 2007 sorry but i had to give you props for starting early. respect no kids yet for me yet. Quote Link to comment Share on other sites More sharing options...
gixxerrider Posted February 12, 2007 Report Share Posted February 12, 2007 From what I have read. if you but money in a college fund it will reduce your grant, and tution assistance. I have maxed out money in my 401K and my roth IRA to reduce my overall income. I have 7 years till my daughter can go to college and I am going to pay with student loans and grant and any other assistance i can get at the time. Good luck. Quote Link to comment Share on other sites More sharing options...
r8rs4lf Posted February 12, 2007 Author Report Share Posted February 12, 2007 sorry but i had to give you props for starting early. respect no kids yet for me yet. Ya man, gotta start early. Especially since I can right now if you know what I mean? I also already have her customized license plates for her car. It costs $30.00/year to save them. I'll just hang them on her wall until then! Quote Link to comment Share on other sites More sharing options...
gixxerrider Posted February 12, 2007 Report Share Posted February 12, 2007 [i also already have her customized license plates for her car. It costs $30.00/year to save them. I'll just hang them on her wall until then! What are they? Quote Link to comment Share on other sites More sharing options...
brobradh77 Posted February 12, 2007 Report Share Posted February 12, 2007 (edited) I have started Roth IRA's for my daughter in my name ,who is 5, so r8rs4lf there is a way to use Roth's if you would like. My finacial guy suggested that I do this and use it as my retirement or since my job will provide 401k make it her college fund. Edited February 12, 2007 by brobradh77 (see edit history) Quote Link to comment Share on other sites More sharing options...
r8rs4lf Posted February 12, 2007 Author Report Share Posted February 12, 2007 What are they? They are her name. I have started Roth IRA's for my daughter in my name ,who is 5, so r8rs4lf there is a way to use Roth's if you would like. My finacial guy suggested that I do this and use it as my retirement or since my job will provide 401k make it her college fund. I've thought about that as well, but how would you take it out? I don't know the ins and outs of IRA's, but how does it pay out when needed? You can't tranfer it to her name right? Monthly check? All out at once? Quote Link to comment Share on other sites More sharing options...
brobradh77 Posted February 12, 2007 Report Share Posted February 12, 2007 Good questions for wich I have no answers..lol I can not remember what he told me about those for They are not intended to be messed with for years down the line. I believe you just cash them out when you are ready for the cash but Quote Link to comment Share on other sites More sharing options...
r8rs4lf Posted February 12, 2007 Author Report Share Posted February 12, 2007 (edited) Well I did ALOT of reading this morning on ROTH IRA's. I like the fact that it's your money and don't have to pay taxes on it when you want to withdraw. I can always withdraw from that account for my daughters college fund or house or whatever I want. It won't help me with my taxable income though. I think I will open one of these before the tax deadline so I can have a year in my pocket already. The only thing I'm worried about is the financial limits. I'm already very close to where I will only be able to make a capped contribution and not be able to contribute the whole $4K this year or $5K next year. That kind of worries me, but I need to do this while I can still contribute the whole amount, even if it just sits there after contributing after 2 or 3 years. I just want to have her financially set when she gets ready for college. I wish more people would contribute to this thread because I know there are people who know more about this than I do and I'd like to hear what they have done. Anyone else have any input on this? Edited February 12, 2007 by r8rs4lf (see edit history) Quote Link to comment Share on other sites More sharing options...
Vtec Max Posted February 12, 2007 Report Share Posted February 12, 2007 sorry but i had to give you props for starting early. respect no kids yet for me yet. Ya man, gotta start early. Especially since I can right now if you know what I mean? I also already have her customized license plates for her car. It costs $30.00/year to save them. I'll just hang them on her wall until then! R8RGIRL? Quote Link to comment Share on other sites More sharing options...
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