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Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Pro's and con's of 529 plan?
I know this has been brought up before but the savings bond post got me thinking. We still haven't set one up for DS yet b/c I am not really sure I want to go that route. I am considering investing the money in other ways and getting making much more over an 18 yr. I am also hesitant b/c what if your kids don't go to college for whatever reason? The 529 constricts to just that...college...
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Posted 3/6/08 3:14 PM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Re: Pro's and con's of 529 plan?
You can transfer the 529 to another child. If none of your children go to college, you CAN withdraw the money but you pay a penalty on the earnings of the fund if it is not used for college. I am not sure what the penalty is. we just set one up for mikayla 
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| Posted 3/6/08 3:22 PM |
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Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Re: Pro's and con's of 529 plan?
You can transfer the 529 to another child
Oh really, I didnt know that! I guess even if you invest in something other than a 529, when you withdraw the funds you'll be taxed
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| Posted 3/6/08 3:24 PM |
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beachgirl
LIF Adult
Member since 7/05 7967 total posts
Name:
sara
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Re: Pro's and con's of 529 plan?
Why not just put it into a CD? thats what I did with money we got for DD. Our main reason was we may not be still living in the US by then as both DH and I talk about moving back to europe some day. for us the 529 was too resticting.
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| Posted 3/6/08 3:33 PM |
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LIMOMx2
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Member since 5/05 24989 total posts
Name:
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Re: Pro's and con's of 529 plan?
The reason my parents chose it for Andrew was do to the tax situation. I really don't know much but after speaking with their financial planner, this was the best choice.
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| Posted 3/6/08 3:39 PM |
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CathyB
Member since 5/05 19403 total posts
Name:
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Re: Pro's and con's of 529 plan?
Posted by jellybean1420
I know this has been brought up before but the savings bond post got me thinking. We still haven't set one up for DS yet b/c I am not really sure I want to go that route. I am considering investing the money in other ways and getting making much more over an 18 yr. I am also hesitant b/c what if your kids don't go to college for whatever reason? The 529 constricts to just that...college...
DH feels the same way. We have their money invested at our brokerage house.
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| Posted 3/6/08 3:41 PM |
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MST9106
My life:)
Member since 6/06 9589 total posts
Name:
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Re: Pro's and con's of 529 plan?
Posted by beachgirl
Why not just put it into a CD? thats what I did with money we got for DD. Our main reason was we may not be still living in the US by then as both DH and I talk about moving back to europe some day. for us the 529 was too resticting.
I also feel the 529 is too restricting and cannot be used for anything else but college education. My very good friend is a financial advisor and she also advised me against it. Thats why we went with a Mutual Fund.
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| Posted 3/6/08 3:42 PM |
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bicosi
life is a carousel
Member since 7/07 14956 total posts
Name:
M
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Re: Pro's and con's of 529 plan?
Posted by MST9106
Posted by beachgirl
Why not just put it into a CD? thats what I did with money we got for DD. Our main reason was we may not be still living in the US by then as both DH and I talk about moving back to europe some day. for us the 529 was too resticting.
I also feel the 529 is too restricting and cannot be used for anything else but college education. My very good friend is a financial advisor and she also advised me against it. Thats why we went with a Mutual Fund.
That's what we did too. and I play around with CDs.
When our kids get a little older, they will have IRA accounts. If we need to use that money for college, you can withdraw to use it for college, without penalty. Although I don't anticipate that they will need money for college, because based on the projections, the money from their mutual funds, CDs, should help them nicely for college. 
Message edited 3/6/2008 3:52:58 PM.
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| Posted 3/6/08 3:45 PM |
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LIMOMx2
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Member since 5/05 24989 total posts
Name:
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Re: Pro's and con's of 529 plan?
It can be used for all things related to college. Books, Housing, and Classes. I am not worried about him not going to College.
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| Posted 3/6/08 3:45 PM |
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karacg
Babygirl is 4!
Member since 5/05 17076 total posts
Name:
Kara®
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Re: Pro's and con's of 529 plan?
It can be used for EDUCATION - doesn't have to be college. And yes, anything related to said education as well.
We max out the 529 for the tax break - but it's in my name. This way it can be used for me, or anyone I want to transfer it to - if DH decided to take Continuing Ed at the local HS it could even be used for that!
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| Posted 3/6/08 4:02 PM |
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MrsSquitty
Family of 6
Member since 10/06 3251 total posts
Name:
Nicole
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Re: Pro's and con's of 529 plan?
Posted by stephanief
You can transfer the 529 to another child. If none of your children go to college, you CAN withdraw the money but you pay a penalty on the earnings of the fund if it is not used for college. I am not sure what the penalty is. we just set one up for mikayla
the penalty is 10%. and you or your husband can go to college if none of the children go
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| Posted 3/6/08 4:02 PM |
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Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Re: Pro's and con's of 529 plan?
When our kids get a little older, they will have IRA accounts. If we need to use that money for college, you can withdraw to use it for college, without penalty. Although I don't anticipate that they will need money for college, because based on the projections, the money from their mutual funds, CDs, should help them nicely for college.
I didnt know you can withdraw from an IRA account without penatly for education. That is good to know.
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| Posted 3/6/08 4:43 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14007 total posts
Name:
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Re: Pro's and con's of 529 plan?
When our kids get a little older, they will have IRA accounts. If we need to use that money for college, you can withdraw to use it for college, without penalty. Although I don't anticipate that they will need money for college, because based on the projections, the money from their mutual funds, CDs, should help them nicely for college.
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Keep in mind that you can only make contributions to an IRA if the IRA owner has earned income, specifically W-2 or some types of 1099 income.
There are some very positive points to having a 529 plan and they typically outweigh the negatives for most families.
There are some very good online resources that you can look into to see if the investment vehicle will fit your needs.
NYS 529 Plan
Message edited 3/6/2008 7:57:00 PM.
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| Posted 3/6/08 7:54 PM |
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Karen
Just chillin'!!
Member since 1/06 9690 total posts
Name:
Karen
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Re: Pro's and con's of 529 plan?
We put her money into an on-line savings account and it's earning a decent amount of interest. We have no plans to move it anytime soon.
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| Posted 3/6/08 7:57 PM |
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