This site is supported by the advertisements on it, please disable your AdBlocker so we can continue to provide you with the quality content you expect.
  1. Plum Diamonds Lab Grown Diamond Rings
  2. Follow us on Twitter @buckeyeplanet and @bp_recruiting, like us on Facebook! Enjoy a post or article, recommend it to others! BP is only as strong as its community, and we only promote by word of mouth, so share away!
    Dismiss Notice
  3. Consider registering! Fewer and higher quality ads, no emails you don't want, access to all the forums, download game torrents, private messages, polls, Sportsbook, etc. Even if you just want to lurk, there are a lot of good reasons to register!
    Dismiss Notice

Financial Advice

Discussion in 'Open Discussion (Work-safe)' started by brutus2002, Jan 20, 2005.

  1. slickman

    slickman keeping tan

    just take $150 a month and invest in lucent and when its 25 again, you'll be ready to take care of yourself and your child.

    529s are great if you enjoy the mediocrity of mutual funds and the general direction of the muddling market. they like to charge annual fees as well especially if you aren't contributing through your checking account monthly. I'm not bashing 529s. I started several back in 01 for clients and they've done alright.

    The alliance college bound, age-based fund began with 1k invested on 10/29 with 100bucks added monthly since 12/17/01 has an original investment value of 4800 but is worth 5779.68. I'm not going to do the forumula to figure out that its somewhere below 20%, but it is 20% more than the amount contributed which is the main thing.

    The manulife one of equal proportion is worth 100bucks less currently.

    Education IRAs are okay, too but there are upper end limits, I think 3k per year and and the house will charge you 40 or 50 bucks a year unless your buddy is the broker, in which case he better eat it for you (Buckstocks).

    If you open a custodial account for your child, just remember that that money is all his/hers once they reach 18 and there's nothing you can do about it.

    529s, if you don't use it all on one kid you can transfer it to another or even a cousin- and you can put up to 250k per year into one which is great if you married a Hilton or some other debutante.

  2. gbearbuck

    gbearbuck Herbie for President

    Actually a total of $256,000 can be put into an account during the life of the 529.

    $11,000 can be put in per person per year or $55,000 today (counting for five years, so the person that gave the $55k cannot put another penny into the 529 until five years have passed)... this is per person so in theory a husband and wife could "gift" $110,000 today and let that count for five years (aunts/uncles, grand parents, friends, etc can also "gift" money until the $256k limit is reached... at that time no more contributions can be made into the fund... unless the limit is increased, which it usually is each year)...

    Keep in mind only $2k can be deducted on each 529 plan (per each bene)... so, if each grandparent from both sides of the family gift $2k, they both cannot take the $2k deduction...
  3. ScarletArrow

    ScarletArrow I'm wearing Gold Pants


    If you participate in a employer sponsored 401(k) / PS plan - you simply increase your deferral rates within that plan.

    At the appropriate time, you can take a loan out on your account balance - lesser of 50% of your balance or $50k - and then pay it back to yourself (or better - have your kid pay it back to you).

    The advantages are that you don't have to open another account, you don't have account fees that typical 529's or IRA's will charge, and you have total control over how much give to your child.

    The disadvantages is that you are actually taxed twice on money that is loaned from your 401(k) plan - i.e., you pay yourself back with after-tax money and you are taxed again when you make your withdraw at retirement age. The other disadvantage is, of course, the obligation to pay off the loan.
  4. brutus2002

    brutus2002 Junior

    Thank you guys !!! Man hopefully I can return the favor if you guys need some info I have. My little boy's name is Noah he is 8 LBS and 21 1/4 inches long. The information on this thread was very helpful...thanks guys!!
  5. buckeyefool

    buckeyefool He's back and better than ever!

    Here is what you need for all the money you will need

    scotch tape
    bubble gum
    a ball of yarn
    AKAK's toaster
    a talking emu
    a moterhome
    and a camera

    Millions I tell you....Millions
  6. jcfiesta

    jcfiesta Rookie

    congrats! I've got a 529 for each of my 3 boys w/ automatic monthly deposits and the yearly B-day cash. This is a good start but I'd also recommend saving the empties and allocating the contributions to college funding.

Share This Page