Investing child's savings (1 Viewer)

[FullMonte]

You didn't mention how old your son is, unless I missed it. That is critical information.

Where to invest for college is a different discussion if the child is 3 than if he is 13.

If he's very young, then I'd recommend a very aggressive mutual fund wrapped up in an education IRA wrapper.

Once he gets into his teenage years, switching it to a more reliable fund might be a good idea.

 

[jrdbrn]

You didn't mention how old your son is, unless I missed it. That is critical information.

Where to invest for college is a different discussion if the child is 3 than if he is 13.

If he's very young, then I'd recommend a very aggressive mutual fund wrapped up in an education IRA wrapper.

Once he gets into his teenage years, switching it to a more reliable fund might be a good idea.

He is 3. I'll look into your suggestions.

 

[jrdbrn]

I am also looking into the states 529 program. What's everyone's thoughts on that? Says there is a 14% yearly return.

 

[Nolaboy1970]

529 is a great way to go.
I have accounts for both for both of my kids.
The great thing about the 529s is that you can deduct what you put into them from your state taxes.
Also, the state gives you quarterly "Earnings Enhancements"- which is money the state puts into your account. It's free money for your childs education.
Lastly, When you eventually withdraw the money for the child's education, it will be taxed at your child's tax bracket.