I have been a subscriber to MONEY magazine for years. I enjoy the human interest pieces, the stocks section is pretty over my head.
But last night I think maybe my subscription gave me my first real good advice.
The article was a little over my head. So maybe I interpreted it wrong.
It was about 529 plans, and being a new mother, this was a good read.
ok, it helped me determine that my home state of GA has good rates on 529's (helpful).
But most helpful was reading that if I invest $6k a year from the babies first year till college- we should be able to cover almost all of 4 years in state tuition, fees and board!
6k seems very do-able considering it will eventually pay for one of my daughters largest life expenses. That seems a little cheap. I probably read it wrong. But it seems like an achievable goal. To invest $6k a year with an eye towards being able to pay almost all my child's college costs.
So husband and I have decided to ask our financial adviser to set up a 529 for baby- and every January he will move our mandatory IRA deduction to the 529 account. It averages about 5k a year and we can make up the remaining amount. YEA! Feeling accomplished.
MONEY magazine taught me something useful
January 2nd, 2014 at 06:08 pm
January 2nd, 2014 at 06:54 pm 1388688894
There are also Coverdale accounts for college. Make sure to compare the pros and cons of both types.
January 2nd, 2014 at 07:17 pm 1388690238
January 2nd, 2014 at 09:41 pm 1388698904
Definitely do your research though. You can choose ANY state's plan. I chose Utah's and it's been a great experience. Good returns and low expenses. And it's been easy to make the withdrawals. In PA, we don't pay state tax on contributions to any 529 plan. I don't know about GA.
January 3rd, 2014 at 02:49 am 1388717359
You CAN finance an education. You CANNOT finace a retirement.