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| trixiezzz |
 Posted: Fri Feb 11, 2005 12:07 pm Post subject: Which is better? Investing money for college or a prepaid? |
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Investing Manager
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| I'm thinking of a prepaid state plan for college for my kids? Who has one and tell us if it's a better investment than just saving in a mutual fund. |
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| jelijo |
| Posted: Sat Feb 19, 2005 7:13 pm Post subject: |
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New Poster
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| I'd like to hear opinions about this too. We invested in a state prepaid tuition plan for our son (he's now 3), but they are not accepting any new enrollments anymore. So when (or if) we have our next child, I'd like to know the best options. |
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| lmountford |
| Posted: Fri Feb 25, 2005 10:45 pm Post subject: |
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Investing Sr. Associate
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| I have never heard of these. I'm not sure we have them in the Uk . Could someone please explain how they work? Does it restrict your child's eventual choice of college ie they can only attend the one they have already pre paid or is it more flexible? |
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| trixiezzz |
| Posted: Mon Feb 28, 2005 4:44 am Post subject: |
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Investing Manager
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The college plan I'm looking at reminds me of a gift certificate!
It's one where you basically prepay the tuition amount at today's cost.Then when your child is college age the state government pays the full tuition ~ regardless of what that cost has risen to.
In my state, your child may choose a public, private or even out-of-state college. And then they receive an amount equal to the average of the then-current tuition in my state. Does that make sense? |
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| noksagt |
| Posted: Sat Mar 12, 2005 11:28 am Post subject: |
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Member of the Month! March
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If you hope to get financial aid, you might consider investing more in retirement accounts & encouraging your working children to do the same: these accounts aren't reported on the FAFSA. This would effectively lower your assets & increase the chance of getting more aid.
Last edited by noksagt on Sun Mar 13, 2005 12:51 pm; edited 1 time in total |
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| mir322 |
| Posted: Sat Mar 12, 2005 12:04 pm Post subject: 529 Plan? |
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Investing Associate
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Have you considered a 529? You can go to pretty much any bank and they can set this up for you. The money that you put in there can be invested and used for education for any beneficiary of your choice. For my plan (I'm using Putnam - that's the one for Ohio), you can change beneficiaries. So, now I have one for myself for grad school and then we'll change it over for when we have children. My minimum is $15/month. The money you put in is taken out your taxes, so your income is lowered. This is kind of an in-between of what you were thinking.
Hope this helps!
Miriam  |
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