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jana
LIF Adult
Member since 3/06 1134 total posts
Name:
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Re: What kind of account did you set up for your child?
Posted by Millie3
Posted by racheK
Posted by Millie3
Posted by muffaboo
Posted by racheK
Posted by starlitdragon
We have a 529 and a savings account.
I suggested 529 accounts on a FB board I'm part of (we set it up as soon as we learned we were pregnant) and I can't even tell you how many people said they weren't worth it because who knew if their child was going to college. I had a few arguments for them, including that it can count towards any secondary education and can be passed down to siblings or their children's children. I was really surprised at how many people were against them!
My husband is in finance and he doesn't like them 
Banking/ fund people don't like these things 
I should note my husband is a wealth management/financial advisor and he was the one that said we should set it up!
Financial advisors do like 529's, I'm on a different side of the industry and most of my peers do not have them. In reality, it's important for people (in general) to save money. Whatever vehicle gets them to do that, is not a bad thing.
As a Mom of a college student, I hate the 529 because it counts against them on Fafsa & CSS profile.
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Posted 2/23/16 4:10 AM  |
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JennP
LIF Adult
Member since 10/06 3986 total posts
Name:
Jenn
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Re: What kind of account did you set up for your child?
Posted by jana
Posted by Millie3
Posted by racheK
Posted by Millie3
Posted by muffaboo
Posted by racheK
Posted by starlitdragon
We have a 529 and a savings account.
I suggested 529 accounts on a FB board I'm part of (we set it up as soon as we learned we were pregnant) and I can't even tell you how many people said they weren't worth it because who knew if their child was going to college. I had a few arguments for them, including that it can count towards any secondary education and can be passed down to siblings or their children's children. I was really surprised at how many people were against them!
My husband is in finance and he doesn't like them
Banking/ fund people don't like these things
I should note my husband is a wealth management/financial advisor and he was the one that said we should set it up!
Financial advisors do like 529's, I'm on a different side of the industry and most of my peers do not have them. In reality, it's important for people (in general) to save money. Whatever vehicle gets them to do that, is not a bad thing.
As a Mom of a college student, I hate the 529 because it counts against them on Fafsa & CSS profile.
Thanks for sharing that. Since you have the experience, what do you recommend?
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| Posted 2/23/16 7:40 AM |
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DiamondGirl
You are my I love you
Member since 7/09 18802 total posts
Name:
DiamondMama
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Re: What kind of account did you set up for your child?
Posted by racheK
Posted by Millie3
Posted by muffaboo
Posted by racheK
Posted by starlitdragon
We have a 529 and a savings account.
I suggested 529 accounts on a FB board I'm part of (we set it up as soon as we learned we were pregnant) and I can't even tell you how many people said they weren't worth it because who knew if their child was going to college. I had a few arguments for them, including that it can count towards any secondary education and can be passed down to siblings or their children's children. I was really surprised at how many people were against them!
My husband is in finance and he doesn't like them
Banking/ fund people don't like these things
I should note my husband is a wealth management/financial advisor and he was the one that said we should set it up!
My husband is in finance too, you cannot beat the interest on this, in 4 years my son has made an incredible amount of money.
My kids are going to college....that is my feeling and if they don't then I will pay the taxes on the 529, still will be winning in that situation.
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| Posted 2/23/16 7:54 AM |
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DiamondGirl
You are my I love you
Member since 7/09 18802 total posts
Name:
DiamondMama
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Re: What kind of account did you set up for your child?
Posted by jana
Posted by Millie3
Posted by racheK
Posted by Millie3
Posted by muffaboo
Posted by racheK
Posted by starlitdragon
We have a 529 and a savings account.
I suggested 529 accounts on a FB board I'm part of (we set it up as soon as we learned we were pregnant) and I can't even tell you how many people said they weren't worth it because who knew if their child was going to college. I had a few arguments for them, including that it can count towards any secondary education and can be passed down to siblings or their children's children. I was really surprised at how many people were against them!
My husband is in finance and he doesn't like them
Banking/ fund people don't like these things
I should note my husband is a wealth management/financial advisor and he was the one that said we should set it up!
Financial advisors do like 529's, I'm on a different side of the industry and most of my peers do not have them. In reality, it's important for people (in general) to save money. Whatever vehicle gets them to do that, is not a bad thing.
As a Mom of a college student, I hate the 529 because it counts against them on Fafsa & CSS profile.
no offense but this is a poor reason not to have a 529. There is no way to know what your income will be in years to come but for me personally based on my income alone I wouldnt qualify for financial aid regardless and it doesnt make sense NOT to save for college so you *might* qualify.
I found this while researching In addition, under the College Cost Reduction and Access Act of 2007, 529 college savings plans and prepaid tuition plans are now treated as an asset of the account owner (typically the parent), meaning they have little impact on a student’s eligibility for financial aid.
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| Posted 2/23/16 8:33 AM |
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leighdvm
My golden boys!
Member since 3/06 4419 total posts
Name:
Michele
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Re: What kind of account did you set up for your child?
I have a Roth IRA for them to HELP. If they are going to college, which I hope they will, I will help as much as I can, but in all likelihood, they will get loans (and hopefully scholarships) like I had to. I won't be able to put twins through college, I just won't have enough $$ for all of it for BOTH.
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| Posted 2/23/16 8:38 AM |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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What kind of account did you set up for your child?
We have a 529 set up for DD. The deductions are automatically taken from my paycheck and honestly I don't even miss the money that goes in there anymore and it does really add up.
My parents have a separate savings account for her also. They do for each of their grandkids.
Personally our biggest concern is paying for college so the 529 makes the most sense for us. In all likelihood with our income our DDs will not quality for financial aid besides loans anyway.
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| Posted 2/23/16 8:53 AM |
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mommy2be716
LIF Adult
Member since 1/16 2921 total posts
Name:
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What kind of account did you set up for your child?
can someone explain the difference between a custodial account, 529, and a reg. savings account? This is all a bit new to me. I always just thought I'd do a 529, and know alot about those, but I'd be interested in hearing about the custodial accounts as well
Message edited 2/23/2016 8:57:10 AM.
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| Posted 2/23/16 8:56 AM |
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oneday
<3
Member since 5/05 4319 total posts
Name:
Pam
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Re: What kind of account did you set up for your child?
Posted by jana
Posted by Millie3
Posted by racheK
Posted by Millie3
Posted by muffaboo
Posted by racheK
Posted by starlitdragon
We have a 529 and a savings account.
I suggested 529 accounts on a FB board I'm part of (we set it up as soon as we learned we were pregnant) and I can't even tell you how many people said they weren't worth it because who knew if their child was going to college. I had a few arguments for them, including that it can count towards any secondary education and can be passed down to siblings or their children's children. I was really surprised at how many people were against them!
My husband is in finance and he doesn't like them
Banking/ fund people don't like these things
I should note my husband is a wealth management/financial advisor and he was the one that said we should set it up!
Financial advisors do like 529's, I'm on a different side of the industry and most of my peers do not have them. In reality, it's important for people (in general) to save money. Whatever vehicle gets them to do that, is not a bad thing.
As a Mom of a college student, I hate the 529 because it counts against them on Fafsa & CSS profile.
If you have a custodial account, doesn't that count against it too? I honestly don't know. This reminds me I need to make an appt with my financial advisor.
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| Posted 2/23/16 10:30 AM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: What kind of account did you set up for your child?
Not sure if anyone has similar experience but I went to a SUNY school and wasn't able to qualify for student loans to cover entire cost, parent was required to apply for parent plus loan and only if parent was denied were you able to take out additional loans to cover.
We have 529 accounts for our girls which are super user friendly and have had great returns. Significantly better than any returns we would have gotten in a savings account.
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| Posted 2/23/16 1:14 PM |
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drpepper318
MIR MIR MIR!
Member since 6/07 8274 total posts
Name:
me
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Re: What kind of account did you set up for your child?
I have custodial accounts for each of my kids.
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| Posted 2/23/16 8:22 PM |
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ny55angel
car seat tech & geek :-)
Member since 2/06 4346 total posts
Name:
P
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What kind of account did you set up for your child?
529 accounts that have the child's name count 20% of it against them in the FAFSA. Ones in the parents name count 5%. That's just up front. Money withdrawn counts as income for the year which can then hurt your estimated family contribution (efc) on your FAFSA for the following year.
Money in a custodial account will count as the same 20% BUT before filing out the freshman FAFSA you can move that money to an account without the child's name and only the parents name. It then only counts 5% against AND money withdrawn is NOT considered income so it has no bearing against the following years FAFSA
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| Posted 2/23/16 9:11 PM |
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ny55angel
car seat tech & geek :-)
Member since 2/06 4346 total posts
Name:
P
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What kind of account did you set up for your child?
Cd's, 401k, Roth Ira and a few other types of accounts are generally more recommended then 529's.
My suggestion would be to contact a college planning financial advisor. One that specializes in this
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| Posted 2/23/16 9:13 PM |
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soontobemommyof2
My boys...my everything <3
Member since 4/15 3635 total posts
Name:
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Re: What kind of account did you set up for your child?
Posted by ny55angel
529 accounts that have the child's name count 20% of it against them in the FAFSA. Ones in the parents name count 5%. That's just up front. Money withdrawn counts as income for the year which can then hurt your estimated family contribution (efc) on your FAFSA for the following year.
Money in a custodial account will count as the same 20% BUT before filing out the freshman FAFSA you can move that money to an account without the child's name and only the parents name. It then only counts 5% against AND money withdrawn is NOT considered income so it has no bearing against the following years FAFSA
Good to know! Thanks for posting this!
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| Posted 2/24/16 7:22 AM |
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racheK
Hudson's Momma
Member since 10/10 2853 total posts
Name:
Rachel
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Re: What kind of account did you set up for your child?
Posted by soontobemommyof2
Posted by ny55angel
529 accounts that have the child's name count 20% of it against them in the FAFSA. Ones in the parents name count 5%. That's just up front. Money withdrawn counts as income for the year which can then hurt your estimated family contribution (efc) on your FAFSA for the following year.
Money in a custodial account will count as the same 20% BUT before filing out the freshman FAFSA you can move that money to an account without the child's name and only the parents name. It then only counts 5% against AND money withdrawn is NOT considered income so it has no bearing against the following years FAFSA
Good to know! Thanks for posting this!
I also want to add that 529s have amazing tax benefits as your earnings are tax free. No tax benefit to a custodial account.
Our kids will not get any financial aid. 529s are extremely beneficial to us personally.
There are really benefits to both. It depends on your financial situation and your long term goals.
Here is an article I found that explains differences:
http://www.kiplinger.com/article/college/T002-C001-S003-custodial-accounts-vs-529-plans.html
Message edited 2/24/2016 11:02:28 AM.
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| Posted 2/24/16 8:01 AM |
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MissJones
I need a nap!
Member since 5/05 22136 total posts
Name:
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Re: What kind of account did you set up for your child?
Posted by bunnyluck
Custodial account. I put all his gift money in there. I want it some place stable so he always has it.
Not doing a 529 plan either. Right now, we max our 401Ks. My theory will always be that loans exist for college, but they do not exist for retirement. It's kind of the airplane and oxygen mask theory. My goal is ultimately to pay for their college out of our savings / assets / pocket, but if life should deal us a bad hand one day, they can take out loans and make an investment in themselves.
Agreed although I lowered my contributions to buy a house. Oh well. But they will have to take out loans.
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| Posted 2/25/16 5:06 AM |
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