Will Trice wrote:
- quote -

To me that wastes your Roth, which is one of the very few methods of
making your investment earnings truly tax-free. If Roth contribution
limits were a lot higher it would be different but you just can't get
enough money into them as it is, let alone tap into that to cover
college costs.

-Tad

BreadWithSpam[at]fractious.net wrote:

- quote -

An article I read today suggested that a Roth was a better place to park
college money than a 529 since you can take distributions from a Roth
for educational expenses without taxes or penalties. And, if your
little terror doesn't go to school, you get to keep it for retirement.
Is this a good plan or not?

-Will

"mark (sixstringtheoryDOTcom)" <mark2741[at]no_chance_spammers_verizon.net> writes:
- quote -

The OP, IIRC, claimed to barely be able to put $50/mo
into education savings. If he's that close to the edge
of savings, his priority needs to be saving for his
retirement, not his kid's educations. If he can only
afford one of the two - retirement or education, there's
no question which needs to come first.

One may borrow money for college. Kids can pay for it
themself, put it off or even skip it. One doesn't have
all of those options for retirement.

If you've got enough cash to maximize all your
retirment accounts (IRA, 401k, etc), *then* it's
time to worry about your kids education. If you're
wringing your hands over $25-$50/mo at the margin,
you're very likely not in a position to be putting
your retirement second.


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BreadWithSpam[at]fractious.net wrote:
- quote -

Why? You'd be skipping a generation, in terms of being able to pass down
wealth at a time when it matters most. In other words, if I were to wait
until I retired to bestow my maxed-out retirement savings on my kids,
they'd be much too old for college anyway. I guess I could skip them and
just give it to my presumed grandchildren, but that's kinda unfair,
ain't it?

Not being condescending...I'm just trying to understand the rationale of
this.

mark

"mark (sixstringtheoryDOTcom)" <mark2741[at]no_chance_spammers_verizon.net> writes:
- quote -

Yes.

- quote -

Many folks consider it far more important to max out
savings your own retirement *first* and then worry
about savings for kids educations.



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mikepier[at]optonline.net wrote:
- quote -

Uh, you're losing me here. Isn't a 403(b) for *your* retirement?

I'm talking about saving for my kids' eduction. They'll be 34 and 35
years old when I am 65 and possibly ready to retire!

mark

I have a 403B plan at work and I thought it made more sense to max out
my 403B contributions rather than start a 529 plan with the extra money
I had. Reason is I can put in $14,000 this year( I believe the limit
goes up every year for a few years), plus my company matches 33 cents
for every dollar.

It is funny that you offer this up without listing the other more
efficient ways.

My mom would call this a fish.

So, "go fish", what other more efficient ways are there?


-Matt

BMS wrote:
- quote -

mark (sixstringtheoryDOTcom) wrote:
- quote -


Have you looked into US Savings Bonds? You can buy a $50 Series I bond
every month, alternating between the kids. Actually, if you purchase
them in *your* name (you can list the kid as benificiary, but not
co-owner) the bonds can be used to fund college expenses tax-free --
unless they change the tax laws again. In any rate, the interest grows
tax deferred and is exempt from state income taxes.

If you purchase them in the kids' names, they will eventually be taxed
at their tax rate, but will count towards their assets when colleges
determine finacial aid.

If you purchase them in your name with Kid as co-owner, I don't know how
that work for financial aid calculations.

The bonds I purchased for my daughter's education have beat the pants
off the Fidelity Blue Chip Growth fund that I started as a college fund
13 years ago. YMMV.

I occasionally look at 529 plans, and they never really look that
appealing to me. I think they are overhyped.

Best regards,
Bob

Either just open the one account, changing beneficiaries is not a problem.

Which State are you using.

529 plans are a lousy way to save, there are other more efficient ways.

"mark (sixstringtheoryDOTcom)" <mark2741[at]no_chance_spammers_verizon.netwrote in message news:c260e.18281$Ue6.17286[at]trndny04...
- quote -

I wanted to start contributing to a 529 plan for my kids (ages 6 months
and 2 years) but cannot afford to contribute more than $50 total (ie,
$25 each) per month right now. Unfortunately my state requires a minimum
contribution (via eft) of $50 per account (and you can only have one
beneficiary (ie, one child) per account.

Can anyone recommend/suggest another state's 529 plan that has a $25 (or
less) contribution limit per month?

Thanks,

mark