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Old 12-30-2011, 10:39 AM
 
20,793 posts, read 52,484,126 times
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Quote:
Originally Posted by OhioChic View Post
I did, but though I may disagree with some if not most of you guys on here at times I really value everyone's opinons and wanted to make sure I was taking the right steps.

When I asked at work they said to open a cd but I dont know if I like that idea. You cant add money to a cd so it's a good way to earn interest but not really save.
Typical response from a bank. No, you can't "add" to a CD but you can open more. If you were to find a good, long term rate for a CD say around 5 or 6%, then it might be a good idea to put some money into one for the next 10 years or so, but good luck finding a rate like that.
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Old 12-30-2011, 11:43 AM
 
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OhioChic - aren't you very young and unmarried? Have you completed college yourself yet? If not, I think the very best thing to do would be for you to use the money towards your own education and increasing your earning potential...... the increase in your salary would be a far better payoff than you are going to get with a cd or 529 (?)
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Old 12-30-2011, 11:45 AM
 
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Quote:
Originally Posted by Bakeneko View Post
OhioChic - aren't you very young and unmarried? Have you completed college yourself yet? If not, I think the very best thing to do would be for you to use the money towards your own education and increasing your earning potential...... the increase in your salary would be a far better payoff than you are going to get with a cd or 529 (?)
I wouldnt say VERY young. I'm 21, I have taken college courses but I didnt finish. . Going back just isnt an option right now maybe in a few years.
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Old 12-30-2011, 04:54 PM
 
Location: El Paso, TX
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Quote:
Originally Posted by OhioChic View Post
I have a few questions about saving for my DD's future.

First the Gerber Grow up plan. Have any of you gotten for your children. I just signed up today for the $15,000 plan but I feel weird taking out LIFE insurance on a baby, I dont know why it just feels strange, but I like that it build cash value to help with college later on.


Also I want to set up a savings account for her to use when she goes to college. I'm lost on where to start. I'm not a wealthy person but I was thinking of putting $50 a pay into an account so $100 a month as well as an annual deposit of $2000. Does that sound like enough? Should I make it a CD or just a custodian account?

Any advice would be helpful, i'm trying to be the best I can be, and I know when I left home all I had was the moeny I had earned from working so I want to be sure to have a nice little nest egg for DD so she doesnt have to take out a bunch of loans and things.

Thanks Mommys and Daddys!
This is what we did.
1. We checked our kids homework and made sure they did it not only correctly but neatly and professionally. This resulted in them having certain work habits and ethics.
2. Mostly my wife read with our kids eveyday before they went to bed. This instilled a warm feeling for reading so when they went to college it helped with all the reading they had to do despite the difficulty of the subjets.
3. We encourage them to volunteer in the community by example. This gave them a civic sense in helping others and also helped in the future when filling out scholarship forms.
4. We attended their school functions and had close communication with their teachers.
5. We stressed during their junior year to get the best grades they could. To us this is the critical year for scholarship approval. Even if the did not get straight As in their freshman years but they improve the next year and keep improving that looks good with scholarship applications because it shows they are maturing. Also, when they volunteer we encourage them to volunteer in the areas they think they want go into when they go to college. Example: If they want to be lawyers, they can volunteer with the local county offices to get to know how the legal system works. This shows the scholarship application boards they are serious about what they want to go into.
6. On their senior year my wife spent countless hours googling scholarships. We did not qualify for federal aid because they said we did not fall under the lowest income brackets. That did not mean we were rich to afford to pay for their total education. She filled out countless applications and have our children sing them and often had to write essays that would be part of the applications. They hated my wife because she had them write essays every week for so many different applications.

The results? It paid dividends big time. 500 here, a 1000 there, 2000 from another source, and on and on added enough to pay for their education. With our youngest daughter she got enough money from so many different sources that it covered all her four years and half of her masters. In other words we never saved a single penny for their education. The only expense we did to help her is buy a brand new car to make sure it did not break down on her while going to school. We also told her that as soon as she graduates and leave the house the car stays with us. It is ours. She is now engaged to a 1LT in the Army and we made a humorous comment to him "Here she is debt free. The only thing she and you will have to do is buy a car".

We spend time and effort in a very difficult areas many parents forget, parenting. We did not sacrifice our money for our future and we still made sure to help them get an education. To some parents saving may work, we just found a way to help them get their education without having to do so. It worked for us. Take care.
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Old 12-30-2011, 06:03 PM
 
20,793 posts, read 52,484,126 times
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Quote:
Originally Posted by OhioChic View Post
I wouldnt say VERY young. I'm 21, I have taken college courses but I didnt finish. . Going back just isnt an option right now maybe in a few years.
I think it is great that you want to start saving for her education but I think you would be better off putting the money aside for your own retirement/emergency funds, etc. Once you have a good start on those, then start putting money away for college for her.
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Old 01-01-2012, 08:10 AM
 
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I have 1 in college and 1 in HS- they both have prepaid plans and I also have another custodial account for both of them - I am not sure of all the tax issues but a financial advisor or accountant can help you-
All I can say is you are smart to do it now- b/c college gets more and more $$ each year- it is roughly 20K a year right now where my DD(private school with a scholarship) goes and also where my son will attend(instate university) in 2013 but it'll be more by then...
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Old 01-01-2012, 02:40 PM
 
Location: Chapel Hill, N.C.
36,437 posts, read 41,744,189 times
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I mean no disrespect---but 21 is VERY young.
Take care of yourself, your education and your retirement first. CD's have not been a very good investment tool for some time now and future looks bleak. Don't buy one. Live within your means, further your education and get your financial advice from a professional who knows you, your income and your goals.

Also life insurance is not a good investment tool for sending a kid to college.The only person who will tell you it is is an insurance salesman.
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Old 01-02-2012, 08:22 AM
 
20,793 posts, read 52,484,126 times
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Originally Posted by no kudzu View Post
I mean no disrespect---but 21 is VERY young.
Take care of yourself, your education and your retirement first. CD's have not been a very good investment tool for some time now and future looks bleak. Don't buy one. Live within your means, further your education and get your financial advice from a professional who knows you, your income and your goals.

Also life insurance is not a good investment tool for sending a kid to college.The only person who will tell you it is is an insurance salesman.
Ok, I will disagree with you on this, for the right policy....we have a very nice chunk of change sitting in our very healthy whole life policies to use for our kids' college expenses if needed, money that is NOT counted on and federal financial aid form . If the policy is set up correctly, with the right company, they can be a very nice way to help pay for college.
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Old 01-02-2012, 11:53 AM
 
2,379 posts, read 4,296,737 times
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Quote:
Originally Posted by no kudzu View Post
I mean no disrespect---but 21 is VERY young.
Take care of yourself, your education and your retirement first. CD's have not been a very good investment tool for some time now and future looks bleak. Don't buy one. Live within your means, further your education and get your financial advice from a professional who knows you, your income and your goals.

Also life insurance is not a good investment tool for sending a kid to college.The only person who will tell you it is is an insurance salesman.
Exactly.

OP goals should be to maximize her own earning potential. Once she has completed her own education and began to save for her own retirement - she should revisit the idea of a college plan for her daughter.

I don't know what exactly the OC does or what her income is but as a 21yo unmarried mother without a college degree - I doubt very much that she has any tax liability - so arguments regarding how to reduce her tax liability are kinda moot, aren't they?


The only life insurance she needs is on herself to provide for her child in the event of her own death.
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Old 01-02-2012, 01:23 PM
 
1,067 posts, read 1,379,757 times
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Quote:
Originally Posted by Bakeneko View Post
Exactly.

OP goals should be to maximize her own earning potential. Once she has completed her own education and began to save for her own retirement - she should revisit the idea of a college plan for her daughter.

I don't know what exactly the OC does or what her income is but as a 21yo unmarried mother without a college degree - I doubt very much that she has any tax liability - so arguments regarding how to reduce her tax liability are kinda moot, aren't they?


The only life insurance she needs is on herself to provide for her child in the event of her own death.

My own income is fine. I make enough money to support myself and my daughter. I do plan on going back to school but maybe in a few years right now is not the time. When I do go back to school I'm not changing careers i'm very happy at where im at.

I do have life insurance for myself. Not sure why that was mentioned.
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