Money Gurus please help:
My wife and I are expecting our first child. I am wanting to begin saving for his education. Would an IRA would be a feasible option? Roth or Traditional? I was reading that money can be taken out of an IRA without penalty for education. I will also be retiring about the time he is 20 so was thinking if he got scholarships I could use it to supplement my retirement. I have a state pension for my retirement. TIA

This post was edited on 12/28/13 at 3:36 pm

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Posted by Sigma

Fairhope, AL

Member since Dec 2005

3643 posts

Posted on 12/28/13 at 3:38 pm to chuckitdeep

What if he doesn't get scholarships? How will you fund retirement?

I suggest a 529 first, if not then an ESA.

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Posted by chuckitdeep

Member since Nov 2008

730 posts

Posted on 12/28/13 at 3:53 pm to Sigma

I have a state pension that will be my retirement. I am trying to figure a way to save for his college and be tax friendly to me in case he does get scholarships.

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Posted by Sigma

Fairhope, AL

Member since Dec 2005

3643 posts

Posted on 12/28/13 at 4:31 pm to chuckitdeep

If you're confident that pension will still be around, a Roth makes sense. It depends on your expected lifestyle in retirement compared to the pension, and if that $$ will be enough. It wouldn't hurt to stick some in an education account just in case though.

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Posted by chuckitdeep

Member since Nov 2008

730 posts

Posted on 12/30/13 at 9:32 am to Sigma

Thanks I will look into that as well.

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Posted by rjt

Member since Aug 2013

22 posts

Posted on 12/30/13 at 1:17 pm to chuckitdeep

I would look at the Louisiana START Savings Account. It's LA's state sponsored 529. They match a portion of your contribution, depending on your income. And of course it's tax free for education. They use Vanguard Funds which I'm not crazy about but no other 529 is going to match your contributions.

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