| Posted by | Message |
BBJ 
LSU Fan
BR
Member since Apr 2012
113 posts
| Should I start a Roth Ira or 529 plan for kids (Posted on 6/27/12 at 7:03 am)
Have a 2 yr old and new born.
With the ability to withdraw from Roth Ira if needed is it the better way to go?
|
| Back to top | Share on  |
jmtigers 
Southern Miss Fan
1826.71 miles from USC
Member since Sep 2003
3215 posts
| re: Should I start a Roth Ira or 529 plan for kids (Posted on 6/27/12 at 7:51 am to BBJ)
DO both if you can... but if not Roth first and then 529.
|
| Back to top | |
AUtigerNOLA 
Auburn Fan
New Orleans, LA
Member since Apr 2011
5127 posts
| re: Should I start a Roth Ira or 529 plan for kids (Posted on 6/27/12 at 8:00 am to BBJ)
I would go with the Roth IRA. Just make sure you choose your investments wisely...I would look for some funds that have been around for a little while. This way you can look at the history of returns to see how well the fund has done over the past 20 years or so that includes recessions, crashes, etc...
|
| Back to top | |
toopotent
LSU Fan
New Orleans
Member since Oct 2010
45 posts
| re: Should I start a Roth Ira or 529 plan for kids (Posted on 6/27/12 at 8:41 am to BBJ)
Im pretty sure for a roth the individual needs to be making some amount of money in order to contribute and you cant contribute more than that amount for that year.
|
| Back to top | |
LSU0358
LSU Fan
Member since Jan 2005
4589 posts
| re: Should I start a Roth Ira or 529 plan for kids (Posted on 6/27/12 at 9:36 am to toopotent)
quote:
Im pretty sure for a roth the individual needs to be making some amount of money in order to contribute and you cant contribute more than that amount for that year.
This. It would be difficult to show a 2 year old as earning an income. Now once they hit 12-14, one could make it happen.
|
| Back to top | |
Zilla
LSU Fan
Friendswood, TX
Member since Jul 2005
9561 posts
| re: Should I start a Roth Ira or 529 plan for kids (Posted on 6/27/12 at 2:09 pm to toopotent)
I'm pretty sure he means roth for himself, or 529 for the kiddo
|
| Back to top | |
GoCrazyAuburn
Auburn Fan
Member since Feb 2010
9088 posts
| re: Should I start a Roth Ira or 529 plan for kids (Posted on 6/27/12 at 8:04 pm to BBJ)
529 if you are wanting this to be for college savings.
|
| Back to top | |
ZereauxSum
LSU Fan
Atlanta, GA
Member since Nov 2008
5769 posts
| re: Should I start a Roth Ira or 529 plan for kids (Posted on 6/27/12 at 9:22 pm to BBJ)
If you aren't saving for retirent at all, definitely do that first.
|
| Back to top | |
TheNolaClap
LSU Fan
Baton Rouge
Member since Jun 2012
55 posts
| re: Should I start a Roth Ira or 529 plan for kids (Posted on 6/27/12 at 9:57 pm to ZereauxSum)
Yea Roth all the way. First priority IMO.
|
| Back to top | |
Bayou Tiger
LSU Fan
The Woodlands, TX
Member since Nov 2003
2939 posts
| re: Should I start a Roth Ira or 529 plan for kids (Posted on 6/27/12 at 11:14 pm to BBJ)
This will sound insensitive, but am I the only one not saving for my kids' college?
Whatever happened to scholarships, jobs, and student loans? My kids need to see it as a business decision, not an entitlement.
I seem to be in the minority on this one. However, based on their grades I plan to pay them back a certain percentage upon graduation (money from side investments, not a specific college fund).
|
| Back to top | |
ForeLSU
LSU Fan
The Corner of Sanity and Madness
Member since Sep 2003
30366 posts
 Online
| re: Should I start a Roth Ira or 529 plan for kids (Posted on 6/27/12 at 11:22 pm to BBJ)
quote:
With the ability to withdraw from Roth Ira if needed is it the better way to go?
unless something has changed you're still taxed on growth of a Roth if withdrawing for education while you're under 59.5.
|
| Back to top | |
wegotdatwood 
Arkansas Fan
Member since Aug 2009
13818 posts
Online
| re: Should I start a Roth Ira or 529 plan for kids (Posted on 6/27/12 at 11:38 pm to Bayou Tiger)
quote:
This will sound insensitive, but am I the only one not saving for my kids' college?
quote:
However, based on their grades I plan to pay them back a certain percentage upon graduation (money from side investments, not a specific college fund).
To me that sounds like you will have save and or pay part of it.
My parents didn't have shite me and were 170k debt. They are now out of debt.
I took the bull by the horns and found a way to get it paid. It's set me back a little but I'll be done this December.
I don't have kids but I at least want to have something for them for school. I'll admit, I was extremely jealous of my friends that had their parents pay their school.
I joined the guard, deployed, etc to get my school paid. I'm glad I did it and would do it all over again. There is a boat load in school funding and it will set me and my soon to be wife in an awesome financial situation when I'm done with school. We're completely debt free, 2 paid off cars, and probably 15-20k in the bank. None of that would have been possible if I didn't join. I hate the guard with a passion and it's a pain in the arse but it's been a lifesaver for me.
We can't wait to get a house and we can get a va loan. Once I land a job we'll be netting about 5 to 6k a month with zero debt and cheap arse rent/bills.
My kids will have it better than me. I'm proud of my parents for not passing their debt on to me but it was a hard 5 years on the entire family with them working literally probably 85 hours a week for 5 years. Barring something medically, I'll die making sure me and my future family are not in a situation like that. It's awful, I'll never be a slave to debt.
|
| Back to top | |
Zilla
LSU Fan
Friendswood, TX
Member since Jul 2005
9561 posts
| re: Should I start a Roth Ira or 529 plan for kids (Posted on 6/28/12 at 1:47 pm to Bayou Tiger)
what if you saved for college for your kids, but just didnt' tell them ? so in the absolute worst case scenerio where they are not going to be able to go b/c of money, you inform they it's covered 
seriously, not a bad idea
|
| Back to top | |
GoCrazyAuburn
Auburn Fan
Member since Feb 2010
9088 posts
| re: Should I start a Roth Ira or 529 plan for kids (Posted on 6/28/12 at 3:09 pm to Bayou Tiger)
It is not insensitive. It is far easier for your kids to get a loan for college than for you in retirement.
|
| Back to top | |
GoCrazyAuburn
Auburn Fan
Member since Feb 2010
9088 posts
| re: Should I start a Roth Ira or 529 plan for kids (Posted on 6/28/12 at 3:10 pm to Zilla)
Why would you tell them? I plan on letting my kids know they better be getting a scholarship
|
| Back to top | |
