Hi everyone I would love some opinions please. I was wondering if I should start a 529 plan for my daughter or something else like the ugma? I worry about the pros and cons of each.
My husband and I aren't able to save too much for her at the moment because we only started saving for retirement around two years ago. He is 37 I am 31.
The money going into it will be mostly gift money and some from us here and there. She has around 8k in an ally savings account right now mostly from gift money from family. This will continue to be added onto
What would you do?
Thanks!
Savings accounts don't pay anything, but you have $8k and you'll have $8k when she goes to college.
I like 529's but they need to be invested in the market. You have 14 years.
One thing that I did (and I made it known to people who gifted) is that we matched 100% of any gifts to my kid's 529 accounts. So if they get $100 for a birthday I took that and dumped $200 into the 529. It's worked very well at this point. Did some people stop sending money? Yes. Did others send more? YES!
I send out quarterly updates in a "transparency/stakeholder" report. People love it and it helps keep us in contact.
I have a 6 and 3 year old and we have about $23k in the accounts now. We'll need more but I'm pretty happy with it at this point. about 50% of that money is market returns...