I thought that was what the Gerber grow up plan was, but it's only life insurance. I want a plan to pay on while he grows up so he will have money to go to college. But I don't want to be able to have access to it like a bank account. Is there a program like that?
2006-09-22 22:42:23 · 4 answers · asked by Anonymous in Education & Reference ➔ Other - Education
Here in Canada we have RESP's (Registered Education Savings Plan) offered thru various companies or banks - I got mine for two sons when they were born and you can get them (at least mine were) as lump sums or deposit monthly into the plan.
With the plan that I bought into .... for his first year he got back everything that was deposited - now for his second year (and for his third and forth... his fith he will be on his own) - he receives the divided amount from all that enrolled at the time that he did and what was accumulated from the funds. Different RESP's work differently so it will be something you will want to invesigate - but now at your childs birth is the time to start investing so you will know the money is there for your child and also the child will grow up knowing they have that opportunity - that can be a very powerful mindset for the child!!
Also here, the money when it comes back is taxed at the childs rate not the parents rate - that makes a big difference.
2006-09-22 22:57:50 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I believe that you can do that with a trust fund. But be careful, because if something were to happen to your child at an early age,you may never be able to get the money back.I don't know if you can but you should look into something that lets you access that money early only if your son should happen to die at a young age, in witch case it would be nice to be able to use the colledge money for funeral arrangments instead. I know it sucks to think about but as a new parent you have to be prepared in any situation. Because when accidents happen it strains our lifes horribly, not being prepared for them.. makes them almost impossible to deal with.
2006-09-23 06:08:33 · answer #2 · answered by firedup 6 · 0⤊ 0⤋
I think it is still to early for that.
The best thing to do is to buy bonds, they are good for the life of the child, for college years. If you start now, you will have his or her career paid by the time he starts college. Bonds are sold in different denominations, $ 100.00 etc. You need to specify what you need them for when purchasing.
2006-09-23 05:54:01 · answer #3 · answered by You are loved 5 · 0⤊ 1⤋
It is never too early to start saving! Money is never enough.
You need an Endowment plan. Speak to your nearest Financial Advisor today.
2006-09-23 05:58:40 · answer #4 · answered by floozy_niki 6 · 0⤊ 1⤋