College savings question.

[imjustme]

I am wanting to start saving for my son's college fund, and really have no idea what is the best way to go about that? Should I just open a standard savings account? Is there another type of account that would be better or smarter? My hope is that I will be able to contribute money monthly, although it may not always be the same amount.

[RayK]

A 529 plan would be worth a look-see. It basically means the money in the fund for educational proposes. That includes tuition, dorm fees, books, supplies, lab fees, and things of that sort.

It was
Here's a link to a brief explanation: http://en.wikipedia.org/wiki/529_College_Savings_Plan

ps: your child is very lucky to have a momma like you!

[imjustme]

Awesome! I will look into that. Thank you.

[NavyKat]

A regular savings account is great
There are all sort of accounts you can set up like an Educational IRA
I would sit down with a banker and see what best for you regarding your finances and what is available to you in your state

[JKirstiH]

The 529 and the Educ IRA are great...also sign up with up
http://www.upromise.com/

Money towards college from everyday spending

[imjustme]

Thanks Jen, I had heard about that site before but completely forgot.

It looks like I'm going to be giving USAA a call in the next few weeks to get this stuff set up. I'm excited, I hope that starting this early will really benefit ds.

[Amy]

Autumn has a 529. The only downfall that I see is that it has to be used for education, so if your child decides not to go to school, then...well, you can transfer the account to one of your child's blood relatives, I think is the rule. Like I have a 529 that my dad set up for me when I first started college to help if we had a semester we couldn't afford, but I'm not going to use the money and am going to transfer it into my daughter's name.

[imjustme]

Originally Posted by Amy Autumn has a 529. The only downfall that I see is that it has to be used for education, so if your child decides not to go to school, then...well, you can transfer the account to one of your child's blood relatives, I think is the rule. Like I have a 529 that my dad set up for me when I first started college to help if we had a semester we couldn't afford, but I'm not going to use the money and am going to transfer it into my daughter's name.

That is good to know. So I'm guessing that they don't expire at any point. So if he decided against school and then later on in life wanted to go back, it would still be there to use. Thanks for the info!

[Rich Lunsford]

Great question! Savings for our kids is a terrific goal and starting early is a great idea. By the way, I love the photo of you and your son. The options of 529 College Savings Plans and Coverdell (or Education) IRAs are all good ones. I do want to cover one subject near and dear to my heart. The best financial plan for your kids is to make sure that your current finances and even your retirement funding are planned for first. I know it tugs at every parental heart-string we have not to place our children’s future ahead of our own but it really does make sense. Make sure you have the basics such as a fully funded emergency fund, retirement accounts, and of course have your debt under control (or completely gone). Your financial health is the best gift you can provide your children. You’ll also be able to teach them financial responsibility as they grow. When you’re ready, the 529 and the Coverdell are good options. The advisors at USAA can certainly discuss your particular situation in detail. .

Rich Lunsford is a CERTIFIED FINANCIAL PLANNERTM practitioner with USAA Financial Planning Services, one of the USAA family of companies. Rich holds the Series 7 and 66 securities licenses. Rich also holds the designations of Chartered Financial Consultant (ChFC®), Chartered Life Underwriter (CLU®), and CHARTERED RETIREMENT PLANNING COUNSELOR (CRPC®).

Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP® and CERTIFIED FINANCIAL PLANNER™ in the United States, which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

[itsalwaysme]

We have one for A through USAA and for K through Fidelity. Right now they are taking pretty big hits from the economy being how it is, but I just like to think of it as our money is buying MORE now because stocks are lower, and then when stock prices rise, so will the funds! The only thing we found with USAA is that they have a $250 minimum contribution to start it, where Fidelity didnt. We are in the process of switching Kays to USAA, but unfortunately, the 2 institutions aren't doing what they should.