Hi everyone, I am planning to open a savings account (hopefully for her college) for our child as soon as possible... I am wondering what's the best plan to do it? What should I check? Should I name the account on my name or to my child's name? Any information you can give will be helpful. Thanks in advance
2007-09-13 11:36:41 · 5 answers · asked by CuriousWoman 2 in Business & Finance ➔ Personal Finance
Win the Lottery ! (j/k)
If you put in in your child's name, you will get a break on paying taxes on the interest.
However, when your child applies for financial aid, money in their personal accounts will count against you.
2007-09-13 11:46:44 · answer #1 · answered by Mr Answerman 7 · 2⤊ 0⤋
I have a daughter and we have decided to invest in a 529 plan. But there are so many out there! Well, there are websites that help you compare (and there is a difference if you invest in the one sponsored by your state - or another state). I believe (if I recall correctly) that I researched on www.savingforcollege.com. Also, just an FYI, there is a program called Upromise that has a plan through a couple states (we are in a 529 in Nevada that connects with Upromise). You buy things, your family buys things and depending on the agreement, a certain percentage of the money goes towards your Upromise account....and after so much, it transfers to your 529. Free money! www.upromise.com Good luck!
2007-09-13 12:18:46 · answer #2 · answered by CG 6 · 0⤊ 0⤋
i'd go with a 529 college savings plan, there is one for each state so i would look into what one gives a tax break for you as a resident of that state when th etime comes, in reality though i'd consult an investment professional who can go over the ends and outs of it (annual fee waivers, plan characteristics, etc)
i personally like putnam's better then most just my opinion though
plus for some financial aid qualifying if needed 529 plans sometimes are exempted from determination of qualification and what not
as for how the account would be titled, the 529 plan would be in your name with your child as the beneficiary, as for any other type of savings vehicle it would be you are custodian and your child as the donee
2007-09-13 12:33:26 · answer #3 · answered by lidlwig 2 · 0⤊ 0⤋
529
2007-09-13 11:41:22 · answer #4 · answered by Anonymous · 0⤊ 0⤋
easily, the retirement! such as you mentioned, you may take out a private loan for college, yet no person can provide you a private loan for retirement, how could you pay it returned without activity?!?!?!?
2016-11-15 04:03:58 · answer #5 · answered by ? 4 · 0⤊ 0⤋