2007-02-06 05:59:21 · 7 answers · asked by rudy 1 in Business & Finance ➔ Investing
The most important factor you should consider right now is whether you have life insurance or not. Without life insurance, saving for anything would be futile if you don't protect your income. If something happens to you, how would your family survive? If you do have life insurance, then maybe you can lower your premiums. To see the different types of life insurance, go here: http://obe231.blogspot.com.
If you have life insurance, then you should check whether or not if you have enough saved for retirement. You should find out your financial independence number. For most people, its usually a million or more. If you don't have anything saved for retirement, then open an IRA account. There are two types of IRAs. To learn more about IRAs, go here: http://obe231.blogspot.com/2006/12/individual-retirement-account.html
After that, then you should consider open a 529 plan for the child. They are the best education accounts the government has to offer! To read more about 529 plans, see my research here: http://obe231.blogspot.com/2006/12/529-plan.html
With $3000, I would split it between your retirement account and your son's 529 plan. I would put a little bit more toward your retirement since there's a chance that your son may not want to go to college.
2007-02-06 06:55:04 · answer #1 · answered by Anonymous · 4⤊ 1⤋
The most important thing is to invest for your own retirement. If you have already maxed out your Roth contributions for the year, then take the $3000 and put it into a 529 plan. The state of Utah has a good one. The thing you should really realize is that college funding will always be there; retirement funds will not.
2007-02-06 06:08:50 · answer #2 · answered by abgroove 2 · 1⤊ 2⤋
The group that is known for good investments with low, very very low fees if Vanguard.
VERY GOOD FOR YOU:
If you have a 529 account for education for your son- it is deductible from your income tax return.
Then you establish a 529 educational account (at vanguard or any other place with low fees) - and you may invest it as you like.
A bank or credit union also has the 529 accounts available for your son.
You have from now until April 15, 2007 to put the money aside into this 529 educational account and deduct it from your 2006 taxes.
This is a great way to deduct this from your income tax and have the money available for your child.
GOD bless you and your son.
GOD bless us, always.
CPA-retired
MBA-Boston Univ.
2007-02-06 06:10:03 · answer #3 · answered by May I help You? 6 · 1⤊ 1⤋
Putting it into a 529 plan with your state will likely earn you a tax deduction. You should then put the money into a low fee Index mutual fund if your state offers that as an option
2007-02-06 06:07:13 · answer #4 · answered by bmwdriver11 7 · 1⤊ 1⤋
A blue chip stock is the stock of a well-established company having stable earnings and no extensive liabilities. Most blue chip stocks pay regular dividends, even when business is faring worse than usual. They are valued by investors seeking relative safety and stability, though prices per share are usually high. Typically, such stocks are perceived to offer reliable returns, low yield, and low risk. Many blue chips are components of popular indices, such as the Dow Jones Industrial Average and the S&P 500.
2007-02-06 06:07:37 · answer #5 · answered by Brite Tiger 6 · 0⤊ 3⤋
You can ask at your bank or find an investment couselor who can help you set up a 529B fund. Its an education fund that can be transferred to another person if the person its intended for does not use it or use all of it.
2007-02-06 06:04:02 · answer #6 · answered by Amy V 4 · 1⤊ 1⤋
Do you mean he is now 4-years-old? Or that he is now ready for college?
2007-02-06 06:03:08 · answer #7 · answered by Oh Boy! 5 · 0⤊ 2⤋