Is 529 best option for building college savings?? | TigerDroppings.com
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Kingwood Tiger
LSU Fan
Katy, TX
Member since Jul 2005
13347 posts

Is 529 best option for building college savings??

Wife and I are wanting to start something, but would like to be able to have a little more flexibility and would like some good growth. Considering just opening a 529 and putting $40K in it to start. Daughter is only 6 months old.

Any other options yall can think of??


BBJ
LSU Fan
BR
Member since Apr 2012
301 posts

re: Is 529 best option for building college savings??
529 plan isn't flexible. Money must be used for Education and if not incurs a penalty.

If you opened a custodian account with someone like Fidelity you can use it for anything

The big difference is really your children. The 529 plan has some tax benefits but main thing is your Child can never touch it. Must go through you. With custodian account when the child turns 18. Hope that they don't go rogue and buy a Vet instead of education


lsaltee
LSU Fan
poppin a tent, roastin marshmellows
Member since Sep 2007
3001 posts

re: Is 529 best option for building college savings??
im trying to find a cheap rental house and put it on a 15 year note and have it paid off by the time my daughter is ready for school. Then sell it and pay for her college with that. if she doesn't go to college then i still have a rental house.


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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
58769 posts

re: Is 529 best option for building college savings??
quote:

529 plan isn't flexible.


Right, you can't even roll that money to another family member if the child ends up being dumb.. oh wait.


wegotdatwood
Member since Aug 2009
17094 posts

re: Is 529 best option for building college savings??
Holy smokes. 40k to start, I wish I had your job.


Kingwood Tiger
LSU Fan
Katy, TX
Member since Jul 2005
13347 posts

re: Is 529 best option for building college savings??
quote:

Holy smokes. 40k to start, I wish I had your job.


The wife is a saver

Had thought about buying a house at A&M, and lease it out to kids, might be an option.
This post was edited on 8/5 at 8:59 am


eng08
LSU Fan
Member since Jan 2013
2617 posts

re: Is 529 best option for building college savings??
I have a similar plan in my head for a rental house as a savings/revenue generating instrument for my child.


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wegotdatwood
Member since Aug 2009
17094 posts

re: Is 529 best option for building college savings??
How old are y'all?

Read The Millionaire Next Door


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yellowfin
Illinois Fan
Coastal Bar
Member since May 2006
76572 posts

re: Is 529 best option for building college savings??
quote:

Right, you can't even roll that money to another family member if the child ends up being dumb.. oh wait.


I'm pretty sure you can


LSUtigerME
LSU Fan
Walker, LA
Member since Oct 2012
1211 posts

re: Is 529 best option for building college savings??
You can. Sarcasm font.

However, I do agree with the 529 being somewhat inflexible. I also don't like the idea of a custodian account since when he turns 18, it's his. I'd prefer it to continue to go through me. It's my money, it's simply earmarked for him.

I'm simply planning to diversify. I'll put a little in a 529, save some in a brokerage under my name, and hopefully can pick up a rental unit.


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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
58769 posts

re: Is 529 best option for building college savings??
quote:

I'm pretty sure you can


Slow arse fricker.


BBJ
LSU Fan
BR
Member since Apr 2012
301 posts

re: Is 529 best option for building college savings??
Yes you can move to another child or even yourself if the money is being used for education. Anything other than education and penalties are delt. If the word flexible is in the first sentence. Then my opinion is 529 isn't so flexible.

The Utah 529 plan is the best. Doesn't matter what state you use


yellowfin
Illinois Fan
Coastal Bar
Member since May 2006
76572 posts

re: Is 529 best option for building college savings??
It was a long weekend broke


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Sigma
Michigan State Fan
Fairhope, AL
Member since Dec 2005
2385 posts

re: Is 529 best option for building college savings??
quote:

The Utah 529 plan is the best. Doesn't matter what state you use


How so?


ragacamps
LSU Fan
Member since Jan 2011
2526 posts

re: Is 529 best option for building college savings??
Louisianas is great for residents.


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BBJ
LSU Fan
BR
Member since Apr 2012
301 posts

re: Is 529 best option for building college savings??
Utah has lowest fees

Although La residents can deducte more money from taxes but that just state taxes.


ragacamps
LSU Fan
Member since Jan 2011
2526 posts

re: Is 529 best option for building college savings??
Well Utah doesn't match. Louisiana does for residence.


Kingwood Tiger
LSU Fan
Katy, TX
Member since Jul 2005
13347 posts

re: Is 529 best option for building college savings??
Thanks for all of the responses.....

Looks like we might open a Custodial Mutual Fund, only issue is that we can only start with 26K, and we aren't sure about the tax implications. Looks like as long as it doesn't earn more than $1900 a year, she won't have to pay taxes, and if it does we can claim it on ours.

I can get a fund through work where I don't have to pay any fees, and will earn around 6%.


Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
58769 posts

re: Is 529 best option for building college savings??
quote:

Looks like we might open a Custodial Mutual Fund, only issue is that we can only start with 26K


DO WHAT? Custodial accounts don't have maximums.

quote:

I can get a fund through work where I don't have to pay any fees, and will earn around 6%.


Why not open a custodial account and buy whatever you want (with some fees) and possibly earn 10%+?


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