"BMS" <mcfared[at]comcast.net> wrote in message news:<EMiDb.553553$Tr4.1501549[at]attbi_s03> ...

I set up a ESA and a 529 both for each of my two kids, largely because
the 529 is scheduled to revert to being taxable again in 2011 unless
Congress makes the 2002 tax cuts permanent, something I'm not willing
to gamble 100% on given the size of the current budget deficits. Even
if they do make it tax-free, I would not be surprised if they put some
kind of income limit on the tax-free status, which would probably
disqualify me from tax-free withdrawals. Why gamble? Split your
money amongst both and you're pretty well to get at least half of your
distributions as tax-free

"BMS" <mcfared[at]comcast.net> wrote in message
news:EMiDb.553553$Tr4.1501549[at]attbi_s03...
- quote -

I disagree. The so-called "estate planning benefits" of a 529 plan are
greatly exaggerated for all but the unisurable (and even among that group, I
have several alternatives that work better than a 529 plan). There are
VASTLY superior alternatives with much greater effectiveness and efficiency.

Compared to most alternatives, people who have discretionary income to set
aside for a child's college education are well advised to consider their own
state's 529 plans. I always look local first, because many states offer tax
advantages.

Brent D. Gardner, ChFC
Chartered Financial Consultant
http://members.cox.net/brentdgardner1378/

"Be ever questioning. Ignorance is not bliss. It is oblivion. You don't go
to heaven if you die dumb. Become better informed. Learn from other's
mistakes. You could not live long enough to make them all yourself." - Hyman
George Rickover (1900-86), Admiral, US Navy, advocated development of
nuclear subs & ships

The Chartered Life Underwriter (CLU) and Chartered Financial Consultant
(ChFC), designations owned and exclusively offered by The American College,
signify the highest standards of academic study and professional excellence
in the financial services industry.

A 529 plan is a better estate planning tool than a college savings plan. It
allows for the grandparents to get money out of their estate and skipping a
generation to be tax free.

Don't be lead by the scaring of young parents into dedicated college savings
plans. Look at the life events and your ages and save as much as possible
and be ready. Realize that in 18 years, the tax rules may not look like
anything today.

For more information about college savings go to:

www.collegesavings.org/

"Erick B." <erickbe[at]yahoo.com> wrote in message
news:9ee7d7da.0312142349.701da50[at]posting.google.com...
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Hi,

We have a newborn, and can't figure out which would be the best plan
since each has their pro's and con's. I also can't find info on if one
can do both plans just to cover the bases.

We like the 529, because it is in the parents name, but they are ran
by the state so investment choices, rate-of-returns might not be as
controllable by us or changing investments, stocks, etc. We like to be
in control of our savings, investments. Also, want money to be used
whereever they may decide to go.

The ESA however, is in childs name when time comes and is counted as
their income so might have effect on aid if they were to pursue that.
I'm not too worried about that though. Also, $2000/yr contribution
versus 529 which I don't think has a limit but may be wrong. It also
sounds like relatives can gift to a 529 plan.

Were setting money aside now in our investments, until we figure out
the best method to setup their own education fund. My other thought is
to leave it in our investments and just let it grow there and pay for
their school from that.
Or take out an home equity loan when that time comes and deal with it
that way and pay loan back from moneys put away over the yrs...

Whats the best way to handle funds given by relatives/grandparents for
future college? Take it, or tell them to put it away in their own
accounts until that time comes?

Just trying to gather information, opinions, etc so we can make the
best decision before april 2004.

Thanks in advance.