Save for future studies, pls advice!!!

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AlbertDisuza11
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Save for future studies, pls advice!!!

Postby AlbertDisuza11 » Wed Oct 24, 2012 10:44 am

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.

peachy
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Re: Save for future studies, pls advice!!!

Postby peachy » Wed Oct 24, 2012 1:59 pm

Separate bank account?

Your question is a little vague.

geoff_tewierik
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Re: Save for future studies, pls advice!!!

Postby geoff_tewierik » Wed Oct 24, 2012 7:23 pm

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.

bpgui
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Re: Save for future studies, pls advice!!!

Postby bpgui » Wed Oct 24, 2012 7:50 pm

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

geoff_tewierik
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Re: Save for future studies, pls advice!!!

Postby geoff_tewierik » Wed Oct 24, 2012 8:11 pm

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%

Finacast
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Re: Save for future studies, pls advice!!!

Postby Finacast » Fri Oct 26, 2012 7:23 am

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_t ... 9-plan.php

Finacast
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Re: Save for future studies, pls advice!!!

Postby Finacast » Fri Oct 26, 2012 7:26 am

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.

LeRainDrop
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Re: Save for future studies, pls advice!!!

Postby LeRainDrop » Fri Oct 26, 2012 8:22 am

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.

LeRainDrop
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Re: Save for future studies, pls advice!!!

Postby LeRainDrop » Fri Oct 26, 2012 8:24 am

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-h ... uide/nFZS/

DoingHomework
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Re: Save for future studies, pls advice!!!

Postby DoingHomework » Sun Oct 28, 2012 1:32 pm

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.

Bichon Frise
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Re: Save for future studies, pls advice!!!

Postby Bichon Frise » Sun Oct 28, 2012 9:36 pm

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-h ... uide/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."

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