College Savings

We've gotten a few checks for the baby and will be having a Christening so maybe will getting some more. We want to put the $$ in an account for college but I don't really know too much about it. I've heard of the 529 but I've heard the $$ can only be used for public NYS schools and I'm not sure if we will be staying in NY (prices ). We opened a Upromise account but I can't see that making too much.

What have you all done/Or will you do?

Can you do it through your bank?

I can't believe we have to start thinking about college already (our little baby is only 7 weeks old )

Re: College Savings

I was actually wondering all the same things.

Re: College Savings

basically I put it in a savings account under my daughters name and my name so she cannot touch it until she is 18 and she ewill use it for college

Re: College Savings

Here's a great FAQ on 529's ...

http://nysaves.uii.upromise.com/content/programInfo/faq.html

As you can see, you are not limited to NYS.

Upromise is a way to allow you to build up this 529 by making purchase through partner companies.

I opened a Upromise account for the twins. I didn't put the twins Christening money into the 529, because I wanted the flexibility to move it around into higher yielding investments.

Re: College Savings

We have a custodial savings account for her where I'm on it with her and I can make deposits/withdrawals for her until she's 18. We plan to also open a 529, just haven't decided which one yet. Oh, we have Upromise and really get very little from it. But every little bit helps.

Re: College Savings

I VERY much recommend the 529 account. It has already made us money and our daughter will be 6 weeks tomorrow. We did that over the savings account because it accumulates at a faster rate and the tax benefits are outstanding. Plus, College money, for us, is more important than anything.

Your bank starts the 529 account with the checks you have been given for the baby. (Its in the babys name.) Then, your bank can transfer a certain dollar amount of your money market account each month (assuming money gets deposited there each month). Lastly, the market will accumulate the account for you.

In our case, two days after she was born, we called our financial advisor and opened the 529 account for her. Our advisor told us that when the money accumulates past a certain amount, to stop contributing to the 529 and open a UGMA- gift to minors account. This way you can enjoy the tax benefit to its fullest.

eta- Betty, I would speak with a financial representative at your local bank and find out what their 529 looks like (eg, what funds they have bought into) and see what they reco.

Message edited 10/17/2005 5:04:26 PM.

Re: College Savings

We opened up a 529 account just like expectingjoy did as soon as we got Jacob's SS#.

Re: College Savings

We have a custodial savings that @ 18 Jack is free to use as he wants for college for further investing... etc.

My husband went to the Air Force Academy and is getting his Masters paid for by the USAF and I went to a CUNY John Jay and did pay as I went (since I was a commuting student I worked full time as well). So we are not from families that the parents felt they had to pay for college. We are from families that paid top$$ for high school so that we both were awarded scholarships... etc.

I look at it as what if he doesn't want to attend a college or university and would rather learn a trade or what he he follows his Dad's footsteps I would rather him feel free to use the money as needed.

Heck, looking back now I wish I didn't spend my money on my degree and would have attended sonographer's school. If I did I would be working very easily right now and making great money instead of having a pretty piece of paper in a real expensive frame sitting behind me.

Re: College Savings

We have a 529 plan. I don't believe the money has to be used for a NYS Public school because our financial advisor told us that if we didn't want to give the money to him, we could take the money back for ourselves, or we could divide the money among all of our children. I would definitely choose some type of investment account over a savings account.

Re: College Savings

dont think you have to use it for a ny state school?

Re: College Savings

My mom opened a 529 for Jesse. You do not have to use it for a NYS school. We took $$$ we received for him and put it in a CD for now. We know he won't be using it and it allows us to reevaluate interest rates in 18 months (I think that's the term we got) and either reinvest in a CD or move it to something else.

Re: College Savings

Currently we have his savings in a regular custodial bank acct, but I do not want it sitting there.

I am so confused though, my financial advisor told us that we should max out our Roth IRA allotments because this can be used for college too.

I get conflicting reports from everyone as to what is the "best" thing to do with the money.

Re: College Savings

Posted by -DonnaMarie-

Currently we have his savings in a regular custodial bank acct, but I do not want it sitting there.

I am so confused though, my financial advisor told us that we should max out our Roth IRA allotments because this can be used for college too.

I get conflicting reports from everyone as to what is the "best" thing to do with the money.

Re: College Savings

Right now, we put Jared's christening money in a CD at our bank, where it's getting 4%. It's a 13 month CD. We can put in as much as we want and he can't touch it until he's 21. DH wanted 18...but I won.