Any tips on saving for college?

Question

My son is 1 month old. I have established a 529 account. I have bought EE bonds from the Treasury. I have also made significant purchases in gold and silver. Each month I put in a static amount. What am I missing?

Upromise sounds good but I dont shop with a credit card and neither does most of my family. Also on the insurance opportunity you are getting screwed. You are paying 3600 annually for 10 years (36k) and the value is only 39K? And correct me if I am wrong but any money you take out is in the form of a loan??? Also, as a non-public entity the company could possibly default on its commitment of insurance. Please educate me if I am incorrect.

Answer 1

you can have cash flow investment for your kid, your investment should not for one use, meaning if you withdraw and spend it for college, the money will forever gone, thus look at the MussMutual 10 payments whole life policy, you will have the best benefit of it.

- people use to say, don't investment money in life insurance account, but not all insurance product are the same, I bought for my kids this type of policy for their college saving, I need to pay $3600 a year for 10 years, that it, after 10 years, the account will have $39000 in cash value, when kid finished school, you will have enough money to pay for the expend, the good one is, after you spend the money , you will keep receiving dividend each and every year for policy life time. so that you can use those money again and again.

- This comapny have aroung 9% dividend for the last 30 years histiory, the main key is the company is not the bupilc trade company, that why, policy owner will share company earn.

- your right, you have to loan out from your policy cash value, but you don't need to write check out of you pocket, because policy will receive new dividend every year, use this new dividend to pay your intesest, but one thing that you may not know, this type of policy increase pay dividend each and every year, meaning you will receive more dividend than last year, so on and on, as long as your interest not over the new incoming dividend, you will be OK.

- this company have 155 years history, I have a their past 30 years record show pay aroung 9% dividend, when your kid at age of 30, the account will have $150000 cash value, even you spend 90% of your money, you will fill up back in next 10 years, if you don't spend any money from cash value, your kids at age 60 that time, the cash value will have one million, the policy will matual at 100 years, if you kids can live up to 100 years, policy will pay you 10 million, too good to be true?? that the ways policy work, your job is pay for 10 years, that all, call their agent to understand the policy, you don't need to commit anything.

- I don't even meantion insurance coverage yet, you pay $3600 a years, policy will cover up to $300000 aroung, but coverage will increase overtime, when kid at 40 years old that time I believe policy coverage increase up to one million, mean, your kid no longer buy another insurance again, unless kid want it.

- Why the policy can perform like this , which only one key point, because the company is not go to buplic yet, if you buy from stock tread insurance company, what ever company make, the money will share to stock holder first, than go to policy holder, that why policy holder get very few.

- Massmutual sold this type of policy for more than 50 years already, not many people knowing it, because people don't want to deal with insurance agent and a lot of advisor not supporting it, but as you know, advisor may not know all kind of financial product, is it right? the company is forturn 100 company, finanical rating is the best in any company and any inderstry, the account have s p i c insurance $2500000. noting to lose.

- you will be safe.

- 529 plan is good , but only for one use, that why, I am not open 529 plan, if you know very well on this type of insurance, you may not open 529 plan, or invest in stock market, this type of plan have no tax issue, loan out any time you want after 10 years, not going to impact your credit score becauce of you loan out from policy, your the owner, so that you can use this cash value money for your retirement too, this policy will cover three generation of your family, so do it when your kid very young.

- This product is originally set up for education use, but can not name for education, other wise, the cash value only can be use on education purpose, just like 529 plan, if you don't use for education, your account will have capital gain tax and penalty.

Good luck.

Ps - if you want to know more, you can send me a E-mail, I will help you. I am not a insurance agent, just a parent.

Answer 2

Check out Upromise. it take a small percentage of evthing you buy with you credit card, and puts it into a high yield account for your kids. you can set it up to go between multiple kids as well.
* Upromise Rewards - Join millions of families who turn their everyday spending into college savings.
* Upromise College Savings Plans - Discover easy and affordable ways to start your own college savings plan.
* Family & Friends - They want to help. We make it easy.

Even friends and family can donate, or let you add their cards to the upromise account, so everything you buy could count towards the college savings.

Answer 3

sounds like you are doing awesome, you could also hook up with upromise.com it's not a big chunk, but it could add some money to the 529 account over the years..

Answer 4

Try to double the monthly amount if you can. By the time your son is ready to go, he will be "well-padded."

Answer 5

sounds to me like your on the right track. just invest wisley and make good financial decisions on saving it and it should work out...good luck