Go Back  The Hull Truth - Boating and Fishing Forum > BOATING FORUMS > Dockside Chat
Reload this Page >

Another investment question: Help with kids college investments

Notices

Another investment question: Help with kids college investments

Old 06-12-2012, 08:39 AM
  #1  
Admirals Club Admiral's Club Member
Thread Starter
 
Join Date: Apr 2011
Location: Palm Beach
Posts: 1,415
Default Another investment question: Help with kids college investments

Saw the mutual fund thread and reminded me of something I've been trying to do for a while. My two kids have accounts that were set up by Grandparents. Grandpa died and now the are sitting and I want to consolidate them into one investment for each kid so that I can continue to contribute. I do not bank with the one company, BOA and the other is American Funds with broker out of my area.

I've talked to a "financial advisor" a friend referred me to, but it just doesn't sound like they are interested as the amount is fairly low, less than $5K total.

What is the best solution, advice?
LWLoadie is offline  
Old 06-12-2012, 10:29 AM
  #2  
Admirals Club Admiral's Club Member
 
ol guide's Avatar
 
Join Date: Mar 2012
Location: Baja Sur
Posts: 6,944
Default

have them learn to sew canvas. every canvas shop i know is booked for months and always have been and they can work as much or as little as they want...in my opinion...a skill is the way to go in this economy.
ol guide is offline  
Old 06-12-2012, 10:36 AM
  #3  
Senior MemberCaptains Club Member
 
Join Date: Aug 2006
Location: Central Florida
Posts: 8,245
Default

My suggestion would be to contact Vanguard. They can go over all the options with you and their fees are very low. Their people tend to be well-trained and not on commission.

Have you looked into the Florida Prepaid Plan? It worked out great for us.
Sprockets is offline  
Old 06-13-2012, 04:45 AM
  #4  
Admirals Club Admiral's Club Member
 
Join Date: Nov 2007
Location: Long Island, NY
Posts: 8,361
Default

Probably the best choice would be a state sponsored 529 CS account, mostly because the earnings are 100% tax free to the kids (so long as the money is used for college) and most state's plans require only $500.
The only downsides to 529's are: some states have a yearly cap on contributions (many are $10,000 per account); there is a lifetime cap of $210,000 (sounds like a lot, but it won't even pay for 4 years of college at the high priced schools, much less graduate/law/medical school) which includes investment growth; and there are penalties if the money is not used as allowed.
LI32 is offline  
Old 06-13-2012, 06:24 AM
  #5  
Senior MemberCaptains Club Member
 
Join Date: Aug 2002
Location: sebastian FL
Posts: 2,046
Default

The state tax deduction for a 529 savings account does not help you in FL, but you can still take advantage of the tax free growth of money in the 529 savings plan. Vanguard has one of the best and of course lowest cost. The plans are organized by states and you are NOT constrained to only participate in your own state's plan, you can use any state's plan.

I believe that FL has a very good prepaid tuition program which might be a good deal if you plan to send him/her to a FL state school. Google is your friend
My Turn is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


Thread Tools
Search this Thread