Savings Plan

Hello ladies,

Here are my questions?


1. What is the earliest time one should begin saving for kids college tuition? - when the child hits middle school or as early as their birth.

2 What are the best possible saving methods?

3. What is the average minimum amount you would contribute towards the saving plan?

Please pour in your inputs and experience..

Thanks,
S

Hello Shilpa,

Please check the following thread:

Thoughts?---college savings 529 plan

V

Thanks Vandana for bringing the link to my attention.

Will pursue my question there though the thread so far speaks only about 529 savings plan..

Cheers.
-S

Shilpa - other avenues for college education are Coverdell Education Savings Account (formerlyEducation IRA's), prepaid tuition - you will have to check with each state and see what they have to offer. It is never too early to start saving for college - you do not have to wait until middle school - college costs are soaring!!

Here is the IRS link regarding Coverdell - I would suggest you talk to a broker as well before you set anything up.

Tax Topics - Topic 310 Coverdell Education Savings Accounts

Hi Shilpa,

I definitely think it is great to get ideas on what to do and how to do it. Good websites like the one Vandhana and Shobanag have suggested are the right place to begin.

But, at the same time, think about hiring a financial planner. I think it helps tremendously to have one. Get recommendations from friends for a good one in your area and hire his services.

Hiring a financial planner will help you manifold. He will not only be able to plan things out for kids education but also for your retirement, emergency funds - the whole gamut of things. Also, because CFPs (Certified Financial Planners) do this for a living, they have a lot of information and tools that we don’t know about.

My personal opinion is to let the experts handle it and I monitor it.

Of course, do visit websites for information because you need to know what all of the things mean. But let a professional handle it so all things are taken care of in one place and in the most productive manner.

SS