If You Had $ to Invest for Your Kids

A 529 college fund is tax free when you take it out for school. The avg. college is $27,000.00 a YEAR ! That's now...What will the tuition be in 10 yrs from now?

Hi geebers-

I would invest the $$ into 2 529 accounts...with proportionally more for the elder child.

These accounts for my kiddos have been a godsend for college.

Best luck!
michele/cat

A 529 college savings plan.

Depends how long it needs to be invested before use. I'd put at least 1/2 into stocks (blue chip and global funds) and about 1/2 into a good bond fund. I'd set it up for dividend reinvestment, and I'd invest it over a period of 3-6 months. After that, I'd add some to it every month to get the benefits of dollar cost averaging.

About 5 ago, I started putting a little into a few stocks including Estee Lauder every month and continued through the low points in 2008. I chose Estee Lauder because I'd heard Warren Buffet say that he invests in things he understands, and I figured that I understand make-up LOL The crazy thing is that the Estee Lauder has done better than any of my other investments...It has had a 2:1 split and has doubled in value. When I look at the statement, I'm surprised how a little every month has added up over time.

I would still do a 529 mutual fund for college. The economy and the stock market has been a killer on investments but it may also depend on what kind of fund you have it in. Aggressive, higher-risk funds potentially yield the most gains, and are most appropriate when your child is very young - they have years ahead of them for the fund to recover any losses. As they get closer to college, the fund should consist more of conservative, low-risk investments, like bonds. If that is what your money is in, it's not going to grow very much - but it won't lose very much either.

ETA: You need to speak with a financial adviser - they can best guide you on setting up a 529.

College fund...no doubt about it.

College fund hands down.

We started saving for college before daughter was born. We have 529, numismatics (coins), savings bonds, savings accounts

We believe in distributing all the eggs and not having everything in the same basket.

You can set up a 529 through a banker, financial advisor or if you are a numbers person and financially savvy you can do it yourself.

Before you let it sit and do nothing, at least talk to someone in finances who can guide you so you don't lose ground.

Our daughter is 17 and looking at college in the fall of 2013. She's looking at $50,000 + per year. It's a lot of money and we feel it's our obligation as parents to get her out of college debt free. Debt ( especially student loans) is evil.

I wouldn't

My grandfather started lecturing me about the stock market practically in my diapers.

ONLY put money in you don't care if you never see it again. At the time of his death, he was making over 10k per month in dividends.

He lived through the depression (as head of household at age 12 with a father who went mad -he'd lost everything- a blind mother, and all his brothers and sisters. He worked 3 jobs, and they raised rabbits.

I've lived through 2 bubbles, 3 bursts, 3 recessions, countless pensions being *poof* gone as of by magic, my own college fund taking a 'minor' hit as a highschool freshman (meaning there was no money for college 4 years later)...

And I've come to believe he was right.

Never invest something you would hurt to lose, or have to wait 10 years to get back (like 'minor' hits).

Just my opinion.

Extra money? Sure. Gambling with extra money is great. Win some, lose some. But not with needed money. I've seen to many people lose everything to believe it wouldn't happen to me.

First, how old is your child? Will he/she need the money within the next 5 years? If not, dollar cost average into a 529 college savings plan.

I disagree with a S.H. Don't invest in gold now...its extremely high. You want to buy low and sell high.