Should I leave my children's college money in savings and mutuals or put it in a 529? If so, what's the best one (pros and cons)?
2006-09-03 11:10:30 · 5 answers · asked by Munchy 1 in Business & Finance ➔ Investing
I very much like the benefits of the 529 plans (tax free growth). What I did was find a 529 plan with a healthy choice of investments. Since my kids are quite young, I chose the most aggressive investment option.
If your state offers tax breaks then you should look long and hard at that one. If your state plan stinks, I'd go with one that has a wide range of investments. Typically the 529 plans have an age-based plan that adjusts the investments from more aggressive to more conservative as you child ages. Some also offer static investment options that you can change as you see fit.
Give Missouri, Iowa, New Hampshire & Kansas a look. They each allow for age-based and static investment options.
2006-09-04 06:08:46 · answer #1 · answered by derek 4 · 0⤊ 0⤋
Yes the 529 savings plans are the best way to go, with the tax benefits and they are very flexible.
2006-09-03 12:02:24 · answer #2 · answered by jeff410 7 · 0⤊ 1⤋
I am not familiar with the 529 plans, I heard that they vary in each state, and suck in my state, so I put my kids' education accounts in Coverdell ESA accounts at Scottrade and in mutual funds. The only advantage of a Coverdell is tax free gains when used for education.
2006-09-03 13:17:37 · answer #3 · answered by Anonymous · 0⤊ 0⤋
529 is the best plan
2006-09-03 12:07:44 · answer #4 · answered by dt 5 · 0⤊ 1⤋
i'd say saving is the best
2006-09-03 11:11:55 · answer #5 · answered by Coxie Megan 4 · 0⤊ 1⤋