There are so many kinds and I'm not sure which one to go with. We hope to have more kids one day so I might need one to contribute to for all our kids and I'd also like to be able to use it for private high school if we so choose. Any suggestions?
I want to start a 529 plan for my son (who is under one year old so there is lots of time for it to grow)?
You should consult a Certified Financial Planner who specializes in these types of things. You may want to start with a CFP from MetLife. I have had very good success with them in the past. They seem to know what they are talking about and will treat you well.
Reply:Go to:
www.savingforcollege.com
Here you can check out different plans from each state along with reviews of said plans. Keep in mind, that they all fall into 2 categories- prepay vs invest. The invest type will have expenses (they are mutual funds). You either pay upfront, or, you may, pay to get out. Either way, you pay (via reduction of the fund performance), operating expenses. Depending on the market and your specific investment, you could end up with a huge pile of $ for higher education.
The prepay is exactly what is sounds like, no huge run-up in your balance, just tuition guaranteed.
Which is the best, only you can tell. The investment 529 plans are all sold by registered reps. They get a cut of what you invest. They then obviously have a vested interest in you buying from them. Not that this is bad - they are providing a service and their giving advice. Make sure you can trust the person you buy from.
Do you live in a state that has income tax? If so, look for a plan (probably the one from your state) that lets you take a tax deduction on your state filing.
Good luck!
Reply:Open a Coverdell Education Savings Account first.
Reply:Well, have you looked at http://upromise.com
It is a unique way to save for your childs future college needs.
Take a look!
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