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mtdr1106
junior supafly
Member since 3/06 2268 total posts
Name:
tricia
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your dc's money?
just curious what you can do with your dc's $$ other than leaving it in a savings account?
i am not interested in doing a 529. i think id be more interested in a mutual fund type of investment but am also scared about risking his money.
just curious what most people are doing.
any info you can pass along (financial contacts/banks.etc.) is also welcomed.
thanks
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Posted 8/9/13 2:51 PM  |
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Long Island Weddings
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19461 total posts
Name:
L
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Re: your dc's money?
For stability, with some potential longer term gains if the rates increase eventually, you can ladder CDs, so take $$ and divide it between a 3 month DC, then a 6 month, a year, 18 months or even longer terms.
If you have a brokerage firm you like (i.e. Fidelity, Charles Schwab, Etrade, Merryl Lynch, etc.) and open an account in the child's name/your name, or just your name. You can then purchase stocks in the account.
Now when the kid is older he will have the money looked at more for college. Some of the brokerage firms have people who can help you.
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| Posted 8/9/13 4:06 PM |
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MaZz
* Lovin my baby girl!!! *
Member since 2/09 6243 total posts
Name:
Gina
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Re: your dc's money?
My accountant advises me to put mine into a Roth IRA... He likes that option better than the 529.
Eta: check out this link for more info 529 vs Roth IRA
Message edited 8/9/2013 4:18:38 PM.
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| Posted 8/9/13 4:16 PM |
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Onemoretime
LIF Adult
Member since 9/12 1077 total posts
Name:
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Re: your dc's money?
We have a brokerage account we recently opened, and DH and I each have Roth IRA we contribute to. I SAH so we can contribute (income limits) when I start working we won't be allowed to. Nothing is in the kids names, only us. I just dont't have a good feeling about 529's. Like everyone else, I'm hoping the kids get a full ride and never need this money 
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| Posted 8/9/13 7:18 PM |
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Melmel821
Love being a mom!
Member since 5/08 2776 total posts
Name:
Melanie
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Re: your dc's money?
Posted by MaZz
My accountant advises me to put mine into a Roth IRA... He likes that option better than the 529.
Eta: check out this link for more info 529 vs Roth IRA
Is the roth IRA in your name our your daughter's?
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| Posted 8/9/13 7:57 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: your dc's money?
Posted by Melmel821
Posted by MaZz
My accountant advises me to put mine into a Roth IRA... He likes that option better than the 529.
Eta: check out this link for more info 529 vs Roth IRA
Is the roth IRA in your name our your daughter's?
Can't be in kids name- unless they have earned income.
Why is everyone so skeptical about 529 plans? A lot of financial advisors steer you away bc they don't make money off of them.
Dh and I are over Roth income limits so we can't open one anyway.
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| Posted 8/9/13 8:01 PM |
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Onemoretime
LIF Adult
Member since 9/12 1077 total posts
Name:
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Re: your dc's money?
Posted by MegZee
Posted by Melmel821
Posted by MaZz
My accountant advises me to put mine into a Roth IRA... He likes that option better than the 529.
Eta: check out this link for more info 529 vs Roth IRA
Is the roth IRA in your name our your daughter's?
Can't be in kids name- unless they have earned income.
Why is everyone so skeptical about 529 plans? A lot of financial advisors steer you away bc they don't make money off of them.
Dh and I are over Roth income limits so we can't open one anyway.
I don't like anything in the children's names. My worries about 529 is change in tax codes, not being able to apply for student loans / aid bc of the 529 balances. The money is tied up for education only, I don't feel comfortable with that. If for some reason they do not attend college ( open a business, get involved with real estate etc) then the money is there for whatever.
Message edited 8/10/2013 12:00:57 AM.
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| Posted 8/9/13 11:50 PM |
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mtdr1106
junior supafly
Member since 3/06 2268 total posts
Name:
tricia
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Re: your dc's money?
Posted by Onemoretime
Posted by MegZee
Posted by Melmel821
Posted by MaZz
My accountant advises me to put mine into a Roth IRA... He likes that option better than the 529.
Eta: check out this link for more info 529 vs Roth IRA
Is the roth IRA in your name our your daughter's?
Can't be in kids name- unless they have earned income.
Why is everyone so skeptical about 529 plans? A lot of financial advisors steer you away bc they don't make money off of them.
Dh and I are over Roth income limits so we can't open one anyway.
The money is tied up for education only, I don't feel comfortable with that. If for some reason they do not attend college ( open a business, get involved with real estate etc) then the money is there for whatever.
this is why i am not interested in a 529. i dont want to make his money only available to him for school. if i were going to start a fund to help me pay for my kids schooling i would consider it ~ i just dont want to do that with HIS money.
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| Posted 8/10/13 1:18 AM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: your dc's money?
Posted by mtdr1106
Posted by Onemoretime
Posted by MegZee
Posted by Melmel821
Posted by MaZz
My accountant advises me to put mine into a Roth IRA... He likes that option better than the 529.
Eta: check out this link for more info 529 vs Roth IRA
Is the roth IRA in your name our your daughter's?
Can't be in kids name- unless they have earned income.
Why is everyone so skeptical about 529 plans? A lot of financial advisors steer you away bc they don't make money off of them.
Dh and I are over Roth income limits so we can't open one anyway.
The money is tied up for education only, I don't feel comfortable with that. If for some reason they do not attend college ( open a business, get involved with real estate etc) then the money is there for whatever.
this is why i am not interested in a 529. i dont want to make his money only available to him for school. if i were going to start a fund to help me pay for my kids schooling i would consider it ~ i just dont want to do that with HIS money.
I would just open an investment account (fidelity, Ameritrade, etc) and invest in stocks/mutual funds/bonds.
And you can pull money out of a 529 if you don't use it for school, you just have to pay the taxes on it that you would have had to pay if you invested it elsewhere.
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| Posted 8/10/13 7:45 AM |
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Puppy-Love
LIF Adult
Member since 7/10 1394 total posts
Name:
J
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Re: your dc's money?
We are doing 529 and my kid is going to college. Even state schools are getting to be super expensive and it dares me so we are saving now.
And if for some reason she does not go, which she is, we can transfer to another kid or cash it out...with a penalty ofcourse.
We also have a savings acct in her name for smaller checks etc. This is more of an emergncy fund or car fund for when she is older!
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| Posted 8/10/13 8:55 AM |
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TheLorax
LOVE
Member since 2/06 5581 total posts
Name:
Suzanne / SuzBride
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Re: your dc's money?
We have a 529 and a separate investment acct with my investment advisor, which encompass the majority of our savings for DD. Then a small savings acct for small checks, etc. She gets for holidays or bdays.
Eta if dd does not go to college, we would transfer the 529 to ds.
Message edited 8/10/2013 2:08:33 PM.
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| Posted 8/10/13 2:07 PM |
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TheDivineMrsM
2 girls 4 me!
Member since 8/08 7878 total posts
Name:
Mama mama mama....
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Re: your dc's money?
Posted by Onemoretime
Posted by MegZee
Posted by Melmel821
Posted by MaZz
My accountant advises me to put mine into a Roth IRA... He likes that option better than the 529.
Eta: check out this link for more info 529 vs Roth IRA
Is the roth IRA in your name our your daughter's?
Can't be in kids name- unless they have earned income.
Why is everyone so skeptical about 529 plans? A lot of financial advisors steer you away bc they don't make money off of them.
Dh and I are over Roth income limits so we can't open one anyway.
I don't like anything in the children's names. My worries about 529 is change in tax codes, not being able to apply for student loans / aid bc of the 529 balances. The money is tied up for education only, I don't feel comfortable with that. If for some reason they do not attend college ( open a business, get involved with real estate etc) then the money is there for whatever.
I'm a College Advisor in a high school, so I've got a lot of experience with Fin Aid questions.
ALL students, regardless of family income and savings, are eligible for some form of financial aid. As it stands now, they need to complete the FAFSA to apply for it. The student's information is communicated to the individual college, and a financial aid package (grants, scholarships, loans, work study, etc) is built from there. Some aid is need-based, but not all.
A 529 can be used for any form of education. Many careers require some kind of training or education beyond high school, and the money is able to be used for this also. It's not just limited to traditional colleges, so if your child skips Harvard and goes to BOCES for cosmetology or auto mechanics, that's covered.
The money is transferrable between siblings.
We have a 529 and a regular old savings account for our girls. DH and I have 403B's for retirement and will look into Roth IRAs also (ty to the previous poster that suggested it!)
Message edited 8/10/2013 10:28:04 PM.
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| Posted 8/10/13 10:27 PM |
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