Money Educational Savings Accounts - Page 2

**Dunit35** · 07-16-2015, 09:07 AM

Anybody have one for their children? Or a 529 plan?

We opened a regular savings account for our two year old daughter when she was born. We only put in $10/every other week. We are about to do the same for our newborn. It will amount to $4600 or so. It'll pay for one semester or help with a vehicle.

It looks like a better return would be an education plan. More money will go into it when debt is cleared up.

**noa** · 07-16-2015, 09:55 AM

We have them for our boys, and my in-laws contribute, too. We chose a state plan that had a good reputation.
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**Dunit35** · 07-16-2015, 10:14 AM

It looks like Oklahoma has tax incentives for it. I always have to pay state taxes in January. Will that lessen my state tax burden? Do I start one on the Oklahoma website or contact an investment company?

**mikeyis4dcats.** · 07-16-2015, 10:59 AM

some states give tax reductions for thewir own plan, but some state plans are much better than others. You can use any plan.

Demonpenz · 07-16-2015, 11:09 AM

You could get better ror on your money, but if you don't know what you are doing 509 is ok.

excessive · 07-16-2015, 01:01 PM

I have about $18,000, but my son has a full ride. I can either save it for graduate school or take it out penalty free. I'll have to pay taxes, and that sucks, so I'm debating what to do: "Pay your own damn way to graduate school, you deadbeat freeloader" (actually, he's a great kid and deserves the help) or "Woo who! I've got 12G I wasn't planning on!"

**mikeyis4dcats.** · 07-16-2015, 05:33 PM

Quote:

Originally Posted by excessive

I have about $18,000, but my son has a full ride. I can either save it for graduate school or take it out penalty free. I'll have to pay taxes, and that sucks, so I'm debating what to do: "Pay your own damn way to graduate school, you deadbeat freeloader" (actually, he's a great kid and deserves the help) or "Woo who! I've got 12G I wasn't planning on!"

Aren't those the same option?

**Rain Man** · 07-16-2015, 07:27 PM

Quote:

Originally Posted by mikeyis4dcats.

Aren't those the same option?

Apparently he's banking on his son not figuring that out.

Infidel Goat · 07-16-2015, 07:57 PM

I'd personally suggest reading to your kids, helping them with math, and hoping they win a scholarship instead...

**007** · 07-16-2015, 11:22 PM

Quote:

Originally Posted by kepp

From https://www.missourimost.org/content...529basics.html

What happens if the beneficiary doesn't want to continue his or her education?
If that's the case, you have a couple of options. You can stay invested in case he or she decides to attend school later (there's no age limit on using the money), you can change the beneficiary to an eligible family member, or you can withdraw the money for other uses. A 10% penalty tax on earnings (as well as federal and state income taxes) will apply if you withdraw the money to pay for nonqualified expenses.

Isn't it similar to an IRA that you could pull it out at retirement age without penalties? Seems like I have heard that before.

**DaneMcCloud** · 07-16-2015, 11:36 PM

Quote:

Originally Posted by Amnorix

If you think/expect your kid(s) will go to college, a 529 plan is hard to beat. Essentially it lets you invest money into an earmarked account which grows tax free and can be withdrawn tax free to pay for qualified expenses.

Some states, including Missouri, allow tax credits/deductions for certain contributions to a 529 Plan.

http://www.savingforcollege.com/arti...ally-worth-733

You do of course have the risk of losing principal, etc., but most 529 plans have options to invest in programs based on the year the kid is anticipated to start college. As the kid gets older, the risk matrix is shifted to reduce the percentage invested in higher risk assets and into lower risk assets.

I opened a 529 account for my newborn in mid-2008. I put in $15k to start.

By 2013, even after the crash and the market recovery, it was at $12k.

The "Stock Market", IMO, has become a "Market of Stocks". Nothing is guaranteed. Long term investments may or not be there in today's economy.

Buyer beware.

**007** · 07-16-2015, 11:51 PM

Quote:

Originally Posted by DaneMcCloud

I opened a 529 account for my newborn in mid-2008. I put in $15k to start.

By 2013, even after the crash and the market recovery, it was at $12k.

The "Stock Market", IMO, has become a "Market of Stocks". Nothing is guaranteed. Long term investments may or not be there in today's economy.

Buyer beware.

I won't even dabble in the market anymore. We only invest in highly stable and extremely conservative funds. We don't make much on them but at least we continue to gain and not lose.

**MahiMike** · 07-17-2015, 08:40 AM

We started a 529 plan but stopped it in lieu of Florida Pre Paid. We figured it would take an avg of 15% per year to equal the pre paid plan.

**Dunit35** · 07-17-2015, 10:30 AM

Quote:

Originally Posted by MahiMike

We started a 529 plan but stopped it in lieu of Florida Pre Paid. We figured it would take an avg of 15% per year to equal the pre paid plan.

I'm interested in the state tax benefits. This year I had to pay $700 into state. We both work two jobs, and both of us have one job that doesn't take much out due to not making much. We got boned for it at tax time.

ndws · 07-17-2015, 10:36 AM

I think you also need to take into consideration if you plan on the edu fund to pay for the majority or not. If you have an education fund in place, you severely hamper fafsa opportuties...well, at least if the "parent" is the keeper of the fund. I think a grandparent can open a fund, and then when the question is asked if the student's parents have an education account opened for him/her, then its a loophole and doesnt' nuke your fafsa application.

We have a 2 year old we are reviewing all options with right now as well, and this is something our planner mentioned.

**Dunit35** · 07-17-2015, 10:48 AM

Quote:

Originally Posted by ndws

I think you also need to take into consideration if you plan on the edu fund to pay for the majority or not. If you have an education fund in place, you severely hamper fafsa opportuties...well, at least if the "parent" is the keeper of the fund. I think a grandparent can open a fund, and then when the question is asked if the student's parents have an education account opened for him/her, then its a loophole and doesnt' nuke your fafsa application.

We have a 2 year old we are reviewing all options with right now as well, and this is something our planner mentioned.

Back in 2005, I was denied college grant money due to my father making too much, which was $50k for that year. They didn't bother to ask about the previous five years when he was barely working.

So, if finances continue the way they are for my wife and I, I expect our girls to get denied grant money also.

07-16-2015, 09:07 AM
Dunit35 Keepin it Real Join Date: Sep 2004 Location: Oklahoma Casino cash: $977045	Educational Savings Accounts Anybody have one for their children? Or a 529 plan? We opened a regular savings account for our two year old daughter when she was born. We only put in $10/every other week. We are about to do the same for our newborn. It will amount to $4600 or so. It'll pay for one semester or help with a vehicle. It looks like a better return would be an education plan. More money will go into it when debt is cleared up.
Posts: 10,495

07-16-2015, 09:55 AM	#16
noa Band Join Date: Sep 2005 Casino cash: $1025453	We have them for our boys, and my in-laws contribute, too. We chose a state plan that had a good reputation. Posted via Mobile Device
Posts: 8,302

07-16-2015, 10:14 AM	#17
Dunit35 Keepin it Real Join Date: Sep 2004 Location: Oklahoma Casino cash: $977045	It looks like Oklahoma has tax incentives for it. I always have to pay state taxes in January. Will that lessen my state tax burden? Do I start one on the Oklahoma website or contact an investment company?
Posts: 10,495

07-16-2015, 10:59 AM	#18
mikeyis4dcats. Scarlett Johansson's boytoy Join Date: Nov 2006 Casino cash: $9555998	some states give tax reductions for thewir own plan, but some state plans are much better than others. You can use any plan. __________________
Posts: 12,526

07-16-2015, 11:09 AM	#19
Demonpenz Woman should only make babies Join Date: Nov 2003 Location: Apartment "G UNIT!" Casino cash: $2662136	You could get better ror on your money, but if you don't know what you are doing 509 is ok. __________________
Posts: 54,365

07-16-2015, 01:01 PM	#20
excessive Starter Join Date: Aug 2004 Location: KCMO Casino cash: $9756885	I have about $18,000, but my son has a full ride. I can either save it for graduate school or take it out penalty free. I'll have to pay taxes, and that sucks, so I'm debating what to do: "Pay your own damn way to graduate school, you deadbeat freeloader" (actually, he's a great kid and deserves the help) or "Woo who! I've got 12G I wasn't planning on!" __________________ "I've been known to party some, but I ain't ever hurt no one. Been ashamed of things I've done, especially when, especially when, especially when I'm stoned." D.A.C.
Posts: 386

07-16-2015, 07:57 PM	#23
Infidel Goat Beer Sherpa Join Date: Oct 2001 Location: shackled in a cellar Casino cash: $3772493	I'd personally suggest reading to your kids, helping them with math, and hoping they win a scholarship instead...
Posts: 1,729

07-17-2015, 08:40 AM	#27
MahiMike He's Mahomie! Join Date: Aug 2001 Location: Jax, FL Casino cash: $10023443	We started a 529 plan but stopped it in lieu of Florida Pre Paid. We figured it would take an avg of 15% per year to equal the pre paid plan. __________________ 99.9%
Posts: 17,387

07-17-2015, 10:36 AM	#29
ndws Starter Join Date: Oct 2012 Casino cash: $10010931	I think you also need to take into consideration if you plan on the edu fund to pay for the majority or not. If you have an education fund in place, you severely hamper fafsa opportuties...well, at least if the "parent" is the keeper of the fund. I think a grandparent can open a fund, and then when the question is asked if the student's parents have an education account opened for him/her, then its a loophole and doesnt' nuke your fafsa application. We have a 2 year old we are reviewing all options with right now as well, and this is something our planner mentioned. __________________ Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote. -Benjamin Franklin
Posts: 416