dcsimg The Get Rich Slowly Forums • View topic - Save for future studies, pls advice!!!

  GRS Home  Forum Home
Bank Rates Center
   Savings Account Rates
   Money Market Rates
   Highest CD Rates
Insurance Rates Center
  Auto           Health
   Life              Home
Mortgage Rates Center
  Mortgage Rates
  Mortgage Quotes

Last visit was:
A place for Get Rich Slowly readers to ask questions
and exchange ideas
It is currently Fri Nov 21, 2014 10:33 am




Post new topic Reply to topic  [ 11 posts ] 
Author Message
 Post subject: Save for future studies, pls advice!!!
PostPosted: Wed Oct 24, 2012 10:44 am 

Joined: Mon Oct 15, 2012 4:27 am
Posts: 5
Location: Costa Mesa, CA
I want to save about $100 every month for my nephew so that when he grows up and reaches college education, he won't experience any financial crunch. Is there a way out where I don't need to add thousands every month given that my income is meagre and have two kids as well. Please advice, my nephew is 6 years old and I need to start saving soon. Thanks in advance.


Top
Offline Profile E-mail   
 Post subject: Re: Save for future studies, pls advice!!!
PostPosted: Wed Oct 24, 2012 1:59 pm 

Joined: Mon Feb 04, 2008 7:35 am
Posts: 1148
Location: Maryland
Separate bank account?

Your question is a little vague.


Top
Offline Profile   
 Post subject: Re: Save for future studies, pls advice!!!
PostPosted: Wed Oct 24, 2012 7:23 pm 

Joined: Mon Aug 08, 2011 9:13 pm
Posts: 182
Location: Brisbane, Australia
I do this for my nephew/godson, who's a year old next month.

$100 a month goes into one of my ING accounts.

By the time he'll need it, even at the shitty 4.5% ING is currently paying here in Australia, it'll be a decent amount of cash.

Don't see why you need to add $1000's each month.

Also, as your Location field hasn't been filled in (hint - fix that), it's hard to recommend something specific for you to do. There are systems in the US that allow for savings for educational costs.


Top
Offline Profile   
 Post subject: Re: Save for future studies, pls advice!!!
PostPosted: Wed Oct 24, 2012 7:50 pm 

Joined: Mon Feb 07, 2011 6:33 pm
Posts: 1164
Location: Illinois
geoff_tewierik wrote:
even at the shitty 4.5% ING is currently paying here in Australia,

No on in the U.S. would consider that a shitty rate :). ING is paying 0.75% here


Top
Offline Profile   
 Post subject: Re: Save for future studies, pls advice!!!
PostPosted: Wed Oct 24, 2012 8:11 pm 

Joined: Mon Aug 08, 2011 9:13 pm
Posts: 182
Location: Brisbane, Australia
I know, but we're also paying ~6% on mortgages.

I did just get a letter from my bank saying our variable rate had dropped down to 5.98%


Top
Offline Profile   
 Post subject: Re: Save for future studies, pls advice!!!
PostPosted: Fri Oct 26, 2012 7:23 am 

Joined: Fri Oct 26, 2012 7:16 am
Posts: 2
If you are in the US, I would recommend 529 plans. My wife and I put away money for 6 and 9 yrs olds. You will be surprised what $100/month can do.

More info @ http://www.savingforcollege.com/intro_to_529s/what-is-a-529-plan.php


Top
Offline Profile E-mail   
 Post subject: Re: Save for future studies, pls advice!!!
PostPosted: Fri Oct 26, 2012 7:26 am 

Joined: Fri Oct 26, 2012 7:16 am
Posts: 2
Forgot to mention that if you are looking for a tool to help you plan for college savings, try http://www.finacast.com. It helps you plan save for college and tracks your money in 529 accounts if you choose to do so.


Top
Offline Profile E-mail   
 Post subject: Re: Save for future studies, pls advice!!!
PostPosted: Fri Oct 26, 2012 8:22 am 

Joined: Tue Jun 30, 2009 9:44 pm
Posts: 320
Location: Atlanta, Georgia
Yes, in the United States, a 529 plan is a great option. Here's a link to the SEC's basics on 529s: http://www.sec.gov/rss/your_money/529plan1.htm. Although authorized by federal law, the plans are actually sponsored by the states, so the different states have varying levels of quality for the plans they offer. I think spam filters only let me include one link per post, so I'll provide another one about the various states in a separate post. Note, I personally do not have experience using a 529 since I don't have kids/nieces/nephews yet.


Last edited by LeRainDrop on Fri Oct 26, 2012 8:25 am, edited 1 time in total.

Top
Offline Profile   
 Post subject: Re: Save for future studies, pls advice!!!
PostPosted: Fri Oct 26, 2012 8:24 am 

Joined: Tue Jun 30, 2009 9:44 pm
Posts: 320
Location: Atlanta, Georgia
Okay, here's the information about 529s in the states. It's from Clark Howard, a very well known consumer advocate based out of Atlanta. http://www.clarkhoward.com/news/clark-howard/education/clarks-529-guide/nFZS/


Top
Offline Profile   
 Post subject: Re: Save for future studies, pls advice!!!
PostPosted: Sun Oct 28, 2012 1:32 pm 
Moderator

Joined: Wed Sep 23, 2009 9:01 am
Posts: 5399
Finacast wrote:
Forgot to mention that if you are looking for a tool to help you plan for college savings, try Finacast. It helps you plan save for college and tracks your money in 529 accounts if you choose to do so.


Watch out! Finacast is trying to sell you financial planning services you probably do not need.


Top
Offline Profile E-mail   
 Post subject: Re: Save for future studies, pls advice!!!
PostPosted: Sun Oct 28, 2012 9:36 pm 

Joined: Fri May 04, 2012 2:23 pm
Posts: 818
LeRainDrop wrote:
Okay, here's the information about 529s in the states. It's from Clark Howard, a very well known consumer advocate based out of Atlanta. http://www.clarkhoward.com/news/clark-howard/education/clarks-529-guide/nFZS/


529 101, money can only be used for education. can usually change "beneficiary" at anytime, to yourself included. I suggest Utah if you get no state income tax benefit. Can contribute to any state and use the money for any school.

Other options is gov't bonds, or if the child has the proper income, you can contribute to a Roth IRA for them. Which isn't for education, but it gets the money in there just in case and contributions made directly to a Roth IRA can be taken tax and penalty free. My children have/will have all of the above flavors.

_________________
Bichon Frise

"If you only have 1 year to live, move to Penn...as it will seem like an eternity."


Top
Offline Profile E-mail   
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 11 posts ]  Moderators: bpgui, JerichoHill


Who is online

Users browsing this forum: Google [Bot] and 19 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
Powered by phpBB © 2000, 2002, 2005, 2007 phpBB Group
Theme created StylerBB.net & kodeki