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julz33
i run for bacon
Member since 5/05 20584 total posts
Name:
julz
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Need money advice (savings for children)
I don't agree with what our financial planner told DH - to put all of the kids money into 529 account. I am not a fan of putting all eggs into one basket. In the past we've used ING savings accounts.
What would you do/do you do with your kids' savings? I am talking over 10K-20K each right now... they are all babies so the amount will go up more over time.
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Posted 1/10/11 1:18 PM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
neener1211
:-)
Member since 4/07 22952 total posts
Name:
J
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Re: Need money advice (savings for children)
I like to be in control of money, so I decided for a savings for our children, no 529.
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| Posted 1/10/11 1:19 PM |
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leighla
Support Cancer Research
Member since 5/05 16353 total posts
Name:
Lauren
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Re: Need money advice (savings for children)
I think it depends on what your intent is.
For school only? Then I would agree with your planner.
For emergency use? Maybe split it a little, but mostly still in the 529.
I put all of Logan's in a 529 - I have one we set up when he was born and one that work started for us when Scott died.
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| Posted 1/10/11 1:21 PM |
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Shorty
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Member since 5/05 30390 total posts
Name:
really
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Re: Need money advice (savings for children)
I don't know too much at all about the "all the eggs in one basket" things, but i would probably feel more comfortable if the money was spread out a little.
in addition to straight savings, i would take a portion of the money and purchase whole or universal life insurance for each of them. you can pay the policy up front (least cost to you to pay up front, and it'll be the cheapest possible rate because they're so little!) and the policies will accumulate money over the years in addition to providing a death benefit.
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| Posted 1/10/11 1:23 PM |
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VickiC
Rocking the party
Member since 5/05 4937 total posts
Name:
Vicki
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Re: Need money advice (savings for children)
I would split it up - some in the 529 and some at ING. You can always move more money into the 529 as they receive more money down the road as well.
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| Posted 1/10/11 1:23 PM |
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julz33
i run for bacon
Member since 5/05 20584 total posts
Name:
julz
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Re: Need money advice (savings for children)
Thats why I disagree.. not for school only. I feel like they are going to have too much for it to be school only. (I know, some schools are $$ but what if they go to a state school or have a scholarship?) DH is arguing about it being tax free in 529. I would rather them have the money to use for what they need - being school, living expenses, wedding, whatever.
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| Posted 1/10/11 1:24 PM |
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VickiC
Rocking the party
Member since 5/05 4937 total posts
Name:
Vicki
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Re: Need money advice (savings for children)
Posted by Shorty
in addition to straight savings, i would take a portion of the money and purchase whole or universal life insurance for each of them. you can pay the policy up front (least cost to you to pay up front, and it'll be the cheapest possible rate because they're so little!) and the policies will accumulate money over the years in addition to providing a death benefit.
I would agree with the life insurance policy as well. I know people who cannot get insurance now because they were diagnosed with juvenile diabetes. If their parents had not purchased life insurance for them when they were babies they would have nothing.
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| Posted 1/10/11 1:24 PM |
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julz33
i run for bacon
Member since 5/05 20584 total posts
Name:
julz
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Re: Need money advice (savings for children)
Posted by VickiC
Posted by Shorty
in addition to straight savings, i would take a portion of the money and purchase whole or universal life insurance for each of them. you can pay the policy up front (least cost to you to pay up front, and it'll be the cheapest possible rate because they're so little!) and the policies will accumulate money over the years in addition to providing a death benefit.
I would agree with the life insurance policy as well. I know people who cannot get insurance now because they were diagnosed with juvenile diabetes. If their parents had not purchased life insurance for them when they were babies they would have nothing.
thats a good idea too.
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| Posted 1/10/11 1:25 PM |
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CathyB
Member since 5/05 19403 total posts
Name:
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Re: Need money advice (savings for children)
Posted by VickiC
Posted by Shorty
in addition to straight savings, i would take a portion of the money and purchase whole or universal life insurance for each of them. you can pay the policy up front (least cost to you to pay up front, and it'll be the cheapest possible rate because they're so little!) and the policies will accumulate money over the years in addition to providing a death benefit.
I would agree with the life insurance policy as well. I know people who cannot get insurance now because they were diagnosed with juvenile diabetes. If their parents had not purchased life insurance for them when they were babies they would have nothing.
ITA. I have a cousin who had an organ transplant in college and can't get a policy.
I'd convinced DH we should get them and then our financial planner talked him out of it since he feels the odds of something like that happening are so small. 
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| Posted 1/10/11 1:31 PM |
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Bridex100
Two Under Two Mommy
Member since 3/08 10420 total posts
Name:
Momx100
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Re: Need money advice (savings for children)
Posted by julz33
Posted by VickiC
Posted by Shorty
in addition to straight savings, i would take a portion of the money and purchase whole or universal life insurance for each of them. you can pay the policy up front (least cost to you to pay up front, and it'll be the cheapest possible rate because they're so little!) and the policies will accumulate money over the years in addition to providing a death benefit.
I would agree with the life insurance policy as well. I know people who cannot get insurance now because they were diagnosed with juvenile diabetes. If their parents had not purchased life insurance for them when they were babies they would have nothing.
thats a good idea too.
MIL purchased life insurance policies for DH and his brother when they were very young. DH will shortly get a million dollar payout since he lived.
My friends in the insurance industry advised against these life insurance policies because they said they are the most expensive and told us to instead invest separately into a term insurance and separate mutual funds.
I am still interested in the life insurance with payout for our kids. I think it would be less stressful to pay a set amount every month and know that our kids would have a nice guaranteed nest egg when they are older.
Message edited 1/10/2011 1:33:48 PM.
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| Posted 1/10/11 1:33 PM |
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BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
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Re: Need money advice (savings for children)
Just savings...like you, i didn't agree with 529 for everything being there and not being able to touch it. With that, we have it in savings until we have a large enough number that the interest would actually add up to something.
I have already dipped into what we saved because of an emergency and replaced it soon after.
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| Posted 1/10/11 1:37 PM |
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snowprincess
My happy babies
Member since 3/06 3428 total posts
Name:
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Re: Need money advice (savings for children)
i will probably do a mix of a standard mutual fund and a 529 account
i like th idea of pre-tax dollars but there is no guarntee my child will go to college even though my dh and I did - trade schools cost a lot less - i would like to be able to help that child in some way too
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| Posted 1/10/11 1:38 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Need money advice (savings for children)
Posted by leighla
I think it depends on what your intent is.
For school only? Then I would agree with your planner.
For emergency use? Maybe split it a little, but mostly still in the 529.
I put all of Logan's in a 529 - I have one we set up when he was born and one that work started for us when Scott died.
ITA
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| Posted 1/10/11 1:47 PM |
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leighla
Support Cancer Research
Member since 5/05 16353 total posts
Name:
Lauren
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Re: Need money advice (savings for children)
Posted by morgie124
Posted by leighla
I think it depends on what your intent is.
For school only? Then I would agree with your planner.
For emergency use? Maybe split it a little, but mostly still in the 529.
I put all of Logan's in a 529 - I have one we set up when he was born and one that work started for us when Scott died.
ITA
That makes me feel good. 
You are always smart with this stuff so I was hoping you were going to reply.
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| Posted 1/10/11 1:50 PM |
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nov04libride
big brother <3
Member since 5/05 14672 total posts
Name:
Me
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Re: Need money advice (savings for children)
I put everything in the 529, but there isn't much. I can't imagine DS not going to college since DH and I both did.
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| Posted 1/10/11 1:53 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Need money advice (savings for children)
Posted by leighla
Posted by morgie124
Posted by leighla
I think it depends on what your intent is.
For school only? Then I would agree with your planner.
For emergency use? Maybe split it a little, but mostly still in the 529.
I put all of Logan's in a 529 - I have one we set up when he was born and one that work started for us when Scott died.
ITA
That makes me feel good.
You are always smart with this stuff so I was hoping you were going to reply.
 You can also use a Coverdell ESA which is much broader in what is considered a qualified distribution.
Contributions to a 529 may provide you with state tax credits for the year in which the contribution is made.
Also, if you put the money in a Uniform Gift/Transfer account...it's irrevocable and the child gets the money at the age of majority. Some people don't like the idea of the kids getting access to $$$ at the age of 18.
ETA...Those are just some points to consider. Not sure it helps answer your question. Also, with a 529 plan...don't go with the advisor plan...go with the self directed plan and let them invest based on age.
Message edited 1/10/2011 2:26:24 PM.
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| Posted 1/10/11 2:18 PM |
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maybesoon
LIF Adult
Member since 9/09 5981 total posts
Name:
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Re: Need money advice (savings for children)
I don't believe in 529 we keep their $ in regular accounts
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| Posted 1/10/11 3:08 PM |
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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Re: Need money advice (savings for children)
I would never put all my savings for my children in a 529, even if it is all intended for College. You just never know - what if they get a scholarship? Tuition exchange? Once in the 529, it's forever earmarked for education so if your circumstances change, it could bite you in the arse later.
A 529 is a great SUPPLEMENT to saving for your children but really shouldn't be the only resource. I have individual ING accounts established for both girls, and I plan on opening brokerage accounts for them this year. That, and we hope that some real estate investments will help us pay for their College down the road. So far we have 3 rental properties that pay for themselves, and then some... and the added bonus is they are located next to a local University so if they decide to go there, we have free housing! 
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| Posted 1/10/11 3:12 PM |
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Andrewz00
Look! I changed it!
Member since 4/10 1789 total posts
Name:
Andrew
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Re: Need money advice (savings for children)
well after you decided... if you do use the 529.... sign up for Upromise... add your debit cards and club cards and each time you make a qualifying purchase you get a percentage into the 529 account...
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| Posted 1/10/11 3:41 PM |
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justmefornow
LIF Adolescent
Member since 9/08 859 total posts
Name:
n
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Re: Need money advice (savings for children)
Posted by morgie124
Posted by leighla
I think it depends on what your intent is.
For school only? Then I would agree with your planner.
For emergency use? Maybe split it a little, but mostly still in the 529.
I put all of Logan's in a 529 - I have one we set up when he was born and one that work started for us when Scott died.
ITA
I think it also depends on HOW much money we are talking here. The OP is talking about a lot, so I agree why not vary it up. For someone like me, who can just put in $200-300 per month, it's all going in a 529 instead of "savings".
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| Posted 1/10/11 3:44 PM |
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ThePs1023
LIF Toddler
Member since 8/10 377 total posts
Name:
Rachel
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Re: Need money advice (savings for children)
Posted by julz33
Thats why I disagree.. not for school only. I feel like they are going to have too much for it to be school only. (I know, some schools are $$ but what if they go to a state school or have a scholarship?) DH is arguing about it being tax free in 529. I would rather them have the money to use for what they need - being school, living expenses, wedding, whatever.
You can always pay attention to how much is in their accounts and if it starts to look as though it will cover college and then some you can start contributing elsewhere. (ING savings).
4 years in a private university is about $200k today, who knows what it will be years from now.
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| Posted 1/10/11 5:37 PM |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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Re: Need money advice (savings for children)
DD has a 529 which I contribute to weekly and then a separate savings account where all her "gifts" go and we will start contributing to that too. I agree I wouldn't put all the money in a 529.
What about CDs?
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| Posted 1/10/11 5:55 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: Need money advice (savings for children)
Is this money actually theirs? gifts, etc? DC's money is in CDs. Probably a better place for it, but it's safe there until we decide what to do.
Our money, I don't invest in 529s. You can take loans out for college, you cannot take loans out for retirement. We are investing money that we will use to pay for college, but it is our names. If life makes a bad turn, we will be OK and take out loans. If life goes as planned, we will pay for their college.
I should also mention, my parents' have set up 529 accounts for the grandchildren, so we do have one, we just don't contribute to it. (My parents wanted the tax break)
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| Posted 1/10/11 6:08 PM |
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