Best/ most flexible college savings plan?

[Minnie M6]

I have tried researching this, and it gets a little overwhelming to me with all of the information out there. My kids are 9 and 10, and we have virtually no college savings yet. We have decided to have money taken directly out of DH's biweekly paychecks, but I want to make sure we set up a plan for the kids that is not too restrictive. I'm a little unsure about the 529 plan. Anyone know of other options? Thanks!

 

[mjkacmom]

Well, our kids all have 529's. I don't know all of the options, since DH has been a CFP for the past 20 years, and this is a part of what he does at work. Therefore, I trust his opinion!

 

[micheleq]

Each state has their own 529 plan (there are tons out there), compare the plans and see what works best for your family. There are websites that compare the plans that you can look at (google "compare 529 plans"). If you select your state's 529, often the deposits you make can be deducted from your state (not federal) income tax. The way the money can be used is pretty flexible, and if one child doesn't go to college, you can direct the funds to your other child...

Best bet is to seek out a financial advisor (your local bank should have someone on staff) and consult with them on the best choice for your family.

 

[msmayor]

My DH and I have never been fans of 529's (and he works in the investment/mutual fund field). Although there are some tax advantages, we've always felt its better to just keep the money in our name in case we need to use it for something other than college expenses.

 

[kevinn2233]

they're flexible. The money in a 529 can be used for qualified expenses at just about any accredited college, university, or technical school in the U.S. And some of the 529 plans let students pay the cheaper "in-state resident" tuition rates, no matter what state they're from. One more benefit is that the 529 plan can be transferred if necessary, to certain family members of the beneficiary without penalty. So if one child doesn't use up all the money, you can still help your other children or even use it for your own education.

Hope this Helps

Kevin
Allstate Insurance Advocate
myallstatefinancial.com

 

[mousecruzer]

I have just finished paying off a "state sponsored" 529 fund and registered for another one for our youngest child. The options are endless and overwhelming! I also would recommend that you sign up for Upromise savings at Upromise.com and you get a percentage back of your grocery, online, etc purchases. When you register your relatives and shop savvy you can rack up some cash that you would have never expected!

I also had a Coverdale (?) 529 and switched it to the "state sponsered" one since it took too much of a nose dive with the drop in economy.

Gook luck!