2006-09-29 22:11:22 · 10 answers · asked by kev 1 in Business & Finance ➔ Investing
Buy Life insurance on yourself first.
That pays off most. You might not make it 18 more years.
Then go with mutual funds.
2006-09-29 22:18:26 · answer #1 · answered by cork 7 · 0⤊ 1⤋
Stay out of debt until your kid reaches college at age 17 or 18 and you will be in much better shape to help at that time assuming the child even wants to go to college. It makes no sense to put money into an account paying 5-6% interest while paying 18-20% interest on credit cards. You need to keep your expenses lower than your income and invest in your retirement fund over the next 18 or so years. If your company offers a 401K plan that has a match, you would be silly not to contribute 100% to that plan. That's free money that will continue to grow until the time that you need it for your financial future. Sure, your child (ren) are important to you but if you cannot be a role model to them of how to build wealth in your life, how on earth are you going to help them learn about finances by handing them $100,000 to go to college and have $40,000 of credit card debts? Unfortunately neither high school nor college teach classes about money which is the reason you are asking your question here. Did your parents send you to college? How did they do it? After you have invested in yourself for the next 17 or so years, you will have a net worth so high that it won't be a problem to help your kids with college. The theory is called "pay yourself first."
2006-09-30 05:41:35 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Join an investment club. You can find them if you look. With dividend reinvesting and compounding you can make your newborn a millionaire at retirement.
The best way to get your newborn through college is to have them join the service. The National Guard serves the community in emergencies, stays home most of the time, and pays for almost all of the tuition expense for members.
2006-09-30 05:20:27 · answer #3 · answered by jude2918 3 · 0⤊ 1⤋
I use a Coverdell Education Savings Account at Scottrade. There are no fees and you can invest in stocks, bonds and mutual funds. Many of their mutual funds are no-load and no transacton fee. You can put up to $2,000.00 per year in and all the gains are tax free when used for education.
You can also put up to $10,000.00 per year into a UTMA for your child there. There used to be a tax loophole, where you could make someone else (not a parent or guardian, maybe an aunt or grandmother), the custodian, and the gains would be taxed at the child's tax rate. I think they might have closed that tax loophole but you might want to check.
http://www.scottrade.com
You can put up to $30,000.00 per year into US I or EE series savings bonds. The interest is tax deferred, or tax free if used for qualified education expenses.
http://www.treasurydirect.gov
2006-09-30 08:33:16 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I would like to answer this quetion because I can tell you from expierience that is just a silly way to save money for college .Why you might think because the best waty to save for your childs college tuition is by investing in property and rent out until you"re child is of age to go to college you will always have an income to draw from while they attend school and what ever colege is decided on you can then sell and pay tuition until they finish school because you wil have gotten enough equity on the property to sell and have enough money left over for incidentials.
2006-09-30 05:19:49 · answer #5 · answered by lytesdelite 5 · 1⤊ 1⤋
I would suggest you take a look at your state's 529 plan. The benefits of a 529 plan (as I understand them) is that you can contribute pre-tax money and withdraw that money tax free for education related expenses. Good luck and I'm glad to see you are thinking about college funding at an early point in your child's life.
2006-09-30 19:21:45 · answer #6 · answered by Mr. ARJ 2 · 0⤊ 0⤋
Going with life insurance for yourself is a great idea.
1. you might not make it 18 years and
2. I doubt the world will exist 18 years from now, so it would be a waste.
2006-09-30 11:35:40 · answer #7 · answered by gumby and pokey 3 · 0⤊ 0⤋
start with a small amount in systemetic investment plans(SIP)
which will give you good returns in long run as they are mutual fund investment and they invest in equities which give good returns, so your retuns may be in the range of more than 30 %
when your child will need the money.
2006-09-30 05:23:47 · answer #8 · answered by rajendra s 2 · 0⤊ 1⤋
invest in gold silver or platinum i rekon
also checkout www.megawealthy
3Superfoods.com
im not in it yet but i will be!!
2006-09-30 05:16:04 · answer #9 · answered by criketndogz 2 · 0⤊ 2⤋
iT WILL BE BETTER TO INVEST THROUGH SIP IN ANY LONG TERM DIVERSIFIED MUTUAL FUND .
2006-09-30 05:25:36 · answer #10 · answered by M M L 1 · 0⤊ 1⤋