What's new
Fantasy Football - Footballguys Forums

Welcome to Our Forums. Once you've registered and logged in, you're primed to talk football, among other topics, with the sharpest and most experienced fantasy players on the internet.

Want to start a college fund for my granddaughter. Recommendations? (1 Viewer)

Judge Smails

Footballguy
A grandparent started a fund for my son and it was such a blessing. I want to do the same for my grandkids. What’s the best choice these days? 529? Specific state? (I’m in CA, but read not the best)  Want tax free growth with low fees and good investment options. OK with it being limited to educational expenses. Thinking 529.  Roth is taxed.  The gifted fund for my son was a UGMA but heard those are out. Recommendations?

 
529 is how we did it.. I put in 5000 to start when she was 2 and then $100 a month after that. She ended up going into IT, so did the 2 year technical college.. We were then able to cash out the rest and go on a nice vacation... Only the dividends have to be spent on college.. Anything you put in is yours to take without any penalties. :thumbup:

 
Last edited by a moderator:
529 is how we did it.. I put in 5000 to start when she was 2 and then $100 a month after that. She ended up going into IT, so did the 2 year technical college.. We were then able to cash out the rest and go on a nice vacation... Only the dividends have to be spent on college.. Anything you put in is yours to take without any penalties. :thumbup:
 /thread

 
Last edited by a moderator:
Definitely 529 and avoid the CA plan if you don't like it unless you're getting a break on state taxes for funding it. Some states give it and some don't. If CA doesn't, just put it into the state plan you feel most comfortable with. 

Great thing you're doing. 👍

 
Last edited by a moderator:
I started a 529 when my daughter was born.   I have enough for hopefully 2 years of school

 
I live in Ohio, but I did my 529's through New York.  I remember at the time I was setting up the accounts trying to compare plans and for some reason thinking the New York plan looked better.  To be honest, I didn't really know what the hell I was doing.  I still don't.  Maybe I picked a good one...maybe I didn't.  

 
I signed up for a 529 through Vanguard, which runs the Nevada plan.  When I created the account, Nevada's was one of the 2-3 highest rated plans.  CA residents don't get a tax break for contributions, so go with whatever state's plan the investment folks are recommending these days.

 
I live in Ohio, but I did my 529's through New York.  I remember at the time I was setting up the accounts trying to compare plans and for some reason thinking the New York plan looked better.  To be honest, I didn't really know what the hell I was doing.  I still don't.  Maybe I picked a good one...maybe I didn't.  
I did a little research and there is a website that ranks of the 529 plans and NY and Ohio were the top 2.  They look at performance and fees to make their rankings.   Link:

https://www.savingforcollege.com/intro-to-529s/which-is-the-best-529-plan-available

 
Unfortunately I am not able to start a college fund for your granddaughter at this time.

ETA:  We did a 529 for both of our kids.  Daughter is currently heading into her 3rd year and Sonoma St and it has helped. 

 
Last edited by a moderator:
A box with clear high heels, some Victoria Secret body spray, etc. and a note for if you chose not to go to college could be good schtick.  Keep her motivated.   :shrug:

 
Unfortunately have no college savings set up for our kids, going into 6th and 10tg grade this fall. Any advice how to do some catch up savings. Only have 401k for retirement. No Roth savings. Probably end up with them taking loans and helping them out with paying on them I bet.

 
Unfortunately have no college savings set up for our kids, going into 6th and 10tg grade this fall. Any advice how to do some catch up savings. Only have 401k for retirement. No Roth savings. Probably end up with them taking loans and helping them out with paying on them I bet.
Don’t have a solid answer for you.  In addition to my 529s I made extra payments on my mortgage along the way with the intention of being free and clear before my kids reached college.  My house is now paid off and we are able to stash some of that “extra” cash flow we now have coming in.  The backup/supplement plan is to consider a loan against the house if needed and hope to get the kids through college debt free, but student loans are still on the table if needed...I guess we can compare student loan rates to home equity rates if/when the need arises.  I figure our 529s right now have about 2.5-4 yrs covered depending on school choice. I’ll have a senior and junior this year, so one year to go...

 
belljr said:
I should have about 60k saved by college.

I hope that gets me 2 years lol
Thx all for advice. It really depends. My buddy is paying almost $70K a year for his kid to go to Chapman. On the 5 year plan. Lot of dough 

 

Users who are viewing this thread

Top