Is a 529 (college savings) plan a good idea?
I was thinking about starting a 529 plan for my son, who is currently 6 years old. But I was wondering if right now is the best time to invest, considering the current economic situation. Should I wait until the markets are more stable? I don’t know very much about investing, and I don’t wanna invest college money for him just to lose it! Any advice? Thanks!!
yes as you are buying shares cheaper today and the market will recover in good time
You’re investing for a need 12 years in the future. You’re wanting to buy today at low prices and sell in the future at higher prices. I personally don’t think prices are going to get much lower. So yes, open that account now. The next important decision that you need to make is with who? You’ve no doubt heard about the investments scandals of late. Get yourself a trusted investment adviser. Look on http://www.BestofUS.com it’s a website that lists the best of 10 professions..ie..doctors, lawyers, dentists, financial advisers, etc. They list them by city and state, so you should have several to chose from.
It is a great idea! You are investing in your kid’s future!
My suggestion that after you start one up is to check out the Upromise card. This card you can use for everyday purchases and 1% of the card will go into an account that can be transferred to your kid’s 529 plan. I use it currently to help pay off my student loans! Check it out at http://www.upromise.com, its amazing what you can save on everyday stuff!
Absolutely! He has at least, what, 12 years for that money to grow?
12 years of compound interest plus whatever you invest in on a consistent basis will really add up.
And consider this: a 529 plan is the only one of its kind that offers a tax-deferred and a tax-free component. If all the earnings go towards college expenses, no taxes are paid.
Yes, this is a very good idea. Your son will thank you in 12 years. Good luck to you as well.