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Financial Advice

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brutus2002

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My first child was born yesterday and I want to start an educational account. I need some advice from financial guru's on which ones are the best. Any information would be greatly apprciated!!! BTW he will be a QB 5* commit to the class of 2024!!!:biggrin:
 
Don't the Morgan Stanley guys cheer for your kid at little league games? Maybe they're good. :P

Congratulations!!! Don't be too hard on the kid, as long is he is a four star that should be good enough.
 
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Congratulations on the newborn! :cheers:


As for the financial situation for his education. If he is going to be our starting QB, the scholarship will take care of everything.

The reality for all of us who will have kids attending college in 20-25 years is scary. If the inflation rate of higher education continues at what it was over the last 10 years, tuition for these kids will be aroud 4-5 times what it is now. Better get your kid prepping for the ACT now.
 
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Look into a section 529 plan. Most states have their own plan. You can use any plan that you want, but if you use your own state's plan, there is a state tax deduction for contributions up to $2,000 per year. The account grows tax-free, so long as withdrawals are only made for education expenses.

In Ohio, you can start an account for as little as $15 per month. Most plans have a number of different investment options, depending on how aggressive you want to be.

One nice advantage to the plan is that you are able to change the beneficiary if you want. For instance, if your older child doesn't go to college, it can be used for a later child, or even a grandchild.
 
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Congrats, pops!

I agree on the 529 plan. We have them for our two rugrats. We worked through our financial advisor to get the one that best fit us. We live in Michigan right now, but who knows where we will be when the boys are older and where they will want to go to school. Just make sure you get something that fits your needs.

Oh yeah, start saving now because you will be shocked by the numbers.
 
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One nice advantage to the plan is that you are able to change the beneficiary if you want. For instance, if your older child doesn't go to college, it can be used for a later child, or even a grandchild.
Click to expand...

You can also do this at Upromise.com. It costs nothing and you add money every time you grocery shop or buy gas... anything. I set up an account for my little brother and if he doesn't use it then I'll just find someone deserving and give it to them.
 
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Congrats! As several have said, the 529 is the way to go. I've already opened one up for my first, who isn't due until April.

Our financial guy did a tuition forecast using inflation to see where it would be in 18 years or so- HOLY SHIT! There will have to be something done to reduce tuition growth or cap it at some point, because inflation or no inflation, there will come a time when no one will be able to afford to send their kids to college.
 
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Another nice feature is that 529 plans are for educational purposes only. A mutual fund, or basically any other investment vehicle for that matter, for your son (if it is in his name and you are custodian) will be under his control at 18. Legally, nothing stops him from cashing in the "college" fund and using to travel the world to "find" himself.
 
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First off, Congrats!!!

Some words of caution... if you want to use the educational assets for private school that cannot be done with a 529... also, some states allow tax free distributions only if the child goes to school in that state. If the kid goes to school out of state the distribution is taxable.

I'd suggest you consult a financial advisor... blind info on finance's could get you in trouble if the person doesn't know your personal situation.... I doubt it will sunset, however 529 plans are scheduled to sunset in regards to the taxfree distribution aspect of the plan. Laws can change... knowing those laws could change the reccomendations as well.

Not knowing your situation, if this is for college (not a private elementary, middle, or high school), if you live in the State of Ohio, and a state tax deduction is meaningful to you (when you break the math down, depending on your income and state tax bracket, it could be a good deal, or maybe not too good at all... in regards to limiting yourself to the state of Ohio sponsored plan), using one of the state sponsored plans would prob. be your best bet. Putnam and Vanguard (Vanguard was just added in 2004) are the two fund families in the College advantage program...
 
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brutus2002 said:
My first child was born yesterday and I want to start an educational account. I need some advice from financial guru's on which ones are the best. Any information would be greatly apprciated!!! BTW he will be a QB 5* commit to the class of 2024!!!:biggrin:
Click to expand...
If you would like - you can PM me and I will be more than happy to help out. I'll give you my # if you'd like and you can call me at work tomorrow. It is what I do for a living and I am registered in Ohio.

I can post, or you can repost if you want the info I give you, but I don't my work # all over the message boards....(there are some crazies on here) lol.

kinch said:
Don't the Morgan Stanley guys cheer for your kid at little league games? Maybe they're good. :P

Congratulations!!! Don't be too hard on the kid, as long is he is a four star that should be good enough.
Click to expand...
yes we do! :wink2:
 
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529 is a good bet, but if he is going to get a football scholarship anyway...

If you have a roth ira open for more than 5 years you can use it for education or purchasing a first home.

After picking your vehicle the trick is deciding what to invest in, bonds, stocks, mutual funds.

I would strongly recomend index funds (look for the lowest internal fees). This should allow you to have long term consistant growth. Yes, there are people that can beat the market, but the problem is: YOU CAN'T PICK THEM! 11 of the 16 fund managers on the fortune magazine's 'who's who' list in 2003, underproformed the market (S&P 500) last year. Finding the next Peter Lynch is next to impossible.
 
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