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JsWife
His laugh, Her smile
Member since 12/06 2902 total posts
Name:
Patricia
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Re: college savings?
Posted by Karen
Posted by Hofstra26
Posted by Karen
Most financial advisors are not fan of 529's, quite frankly, because they can not make any money off of them. You can go on-line right now and set up a 529 plan by yourself.
Of course they would much rather see you in an investment that is commission-based.
I agree a financial advisor wants to make money buuuuuuuut there are so many other investment options out there worth looking into as well that can garner you a great return on your investments.
For us, even when I opened the 529 on my own, I didn't like that you couldn't touch the money once it was invested, it HAD to be used for education expenses, and if I withdrew for anything else it would be taxed and I would be penalized. I wasn't surprised to hear the same concerns from my financial guy. I had already considered that down side to the 529 when I opened it. Ultimately, I just much preferred having an investment where I had full access to my money when I want it and for what I want it for............just in case.
I am not criticizing anyone who uses them, I just felt it didn't fit our needs. 
The whole point of a 529 is setting aside funds for college/trade school - so the argument that you can't touch it for anything else is irrelevant to me. I don't want to touch it, that is the whole point!! The odds of neither of my children attending college/trade school is slim, so I am quite happy letting that money grow untouched.
ETA: No other investment we hold (401k, IRA) is coming near the rate of return the 529 plans are.
The type of account doesn't have anything to do with the rate of return. It's the type of investment that matters.
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Posted 2/3/13 12:47 PM  |
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Long Island Weddings
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Karen
Just chillin'!!
Member since 1/06 9690 total posts
Name:
Karen
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Re: college savings?
Posted by JsWife
Posted by Karen
Posted by Hofstra26
Posted by Karen
Most financial advisors are not fan of 529's, quite frankly, because they can not make any money off of them. You can go on-line right now and set up a 529 plan by yourself.
Of course they would much rather see you in an investment that is commission-based.
I agree a financial advisor wants to make money buuuuuuuut there are so many other investment options out there worth looking into as well that can garner you a great return on your investments.
For us, even when I opened the 529 on my own, I didn't like that you couldn't touch the money once it was invested, it HAD to be used for education expenses, and if I withdrew for anything else it would be taxed and I would be penalized. I wasn't surprised to hear the same concerns from my financial guy. I had already considered that down side to the 529 when I opened it. Ultimately, I just much preferred having an investment where I had full access to my money when I want it and for what I want it for............just in case.
I am not criticizing anyone who uses them, I just felt it didn't fit our needs.
The whole point of a 529 is setting aside funds for college/trade school - so the argument that you can't touch it for anything else is irrelevant to me. I don't want to touch it, that is the whole point!! The odds of neither of my children attending college/trade school is slim, so I am quite happy letting that money grow untouched.
ETA: No other investment we hold (401k, IRA) is coming near the rate of return the 529 plans are.
The type of account doesn't have anything to do with the rate of return. It's the type of investment that matters.
Of course. My point was that a PP said there were "better" investment options and that 529's were poorly managed. I think it's pretty hard to beat where Vanguard currently has the 529 invested. I used the other accounts merely for comparison purposes, as all are in aggressive mixed funds right now.
Message edited 2/3/2013 12:56:00 PM.
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| Posted 2/3/13 12:55 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: college savings?
I'm not a fan of whole life insurance.
529s are great for the deduction, but only contribute when you have maxed out retirement. You can take out loans or pay as you go for college - can't do that for retirement.
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| Posted 2/3/13 3:13 PM |
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8ternity
<3
Member since 11/08 10586 total posts
Name:
Formally NYPD-Wife
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Re: college savings?
My Kid is only going to CUNY/SUNY lol j/k...we have an ING acct for her which we contribute to every paycheck.
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| Posted 2/3/13 5:16 PM |
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Journey33
LIF Adult
Member since 12/11 1402 total posts
Name:
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Re: college savings?
Posted by Karen
Most financial advisors are not fan of 529's, quite frankly, because they can not make any money off of them. You can go on-line right now and set up a 529 plan by yourself.
Of course they would much rather see you in an investment that is commission-based.
Im so glad you poinred that out. thats exactly right!
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| Posted 2/3/13 7:53 PM |
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charon54
My two boys!
Member since 5/05 7279 total posts
Name:
Rebecca
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Re: college savings?
Our kids have 529s and savings accounts that we put money into each month.
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| Posted 2/3/13 9:10 PM |
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