Comments on: College Savings and Investing With 529 Plan and ESA

By: How to Save for Your Kids College Education

How to Save for Your Kids College Education — Tue, 08 Dec 2009 14:01:54 +0000

[...] Yes, that’s true. I’ve encountered a few times where people are extremely gun-ho about saving for the kids college, and put their own retirement on the back burner. By utilizing the Roth IRA, you ensure that you [...]

By: 4 Ways to Save For Your Kids College Education

4 Ways to Save For Your Kids College Education — Thu, 17 Sep 2009 10:25:33 +0000

[...] that’s true. I’ve encountered a few times where people are extremely gun-ho about saving for the kids college, and put their own retirement on the back burner. By utilizing the Roth IRA, you ensure that you [...]

By: 5 Ways to Save for College | Prime Time Money

5 Ways to Save for College | Prime Time Money — Mon, 08 Jun 2009 17:31:52 +0000

[...] Yes, that’s true. I’ve encountered a few times where people are extremely gun-ho about saving for the kids’ college, and put their own retirement on the back burner. By utilizing the Roth IRA, you ensure that you [...]

By: ABCs of Investing

ABCs of Investing — Mon, 06 Apr 2009 03:10:16 +0000

[...] Moolanomy put together an excellent guide to college savings. [...]

By: Man Vs. Debt Links Of The Week: 4/3/09 | Man Vs. Debt

Man Vs. Debt Links Of The Week: 4/3/09 | Man Vs. Debt — Fri, 03 Apr 2009 10:03:18 +0000

[...] Moolanomy had a very detailed breakdown of saving for college using 529’s and ESA’s. [...]

By: 10 Questions About College Savings Plans | Good Financial Cents

10 Questions About College Savings Plans | Good Financial Cents — Fri, 03 Apr 2009 03:20:50 +0000

[...] Section 529 savings plans and Coverdell Education Savings Accounts are the two most popular ways to save for college. Many investors also use custodial accounts such as those authorized under a state-sponsored Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA). There are pros and cons to which would be best. Most notably, is if the child does not go to school. Typically, what I see is for parents that what to save some money for the child, but don’t want to force them to go to school, the the custodian account works best. Reversing the situation, and you’ll see the other two being used, most commonly the 529 plan then Coverdell Education Savings Account. [...]

By: FrugalTrader

FrugalTrader — Wed, 01 Apr 2009 22:56:59 +0000

Thanks for including my article Pinyo!

By: Jeff Rose

Jeff Rose — Wed, 01 Apr 2009 15:15:16 +0000

Pinyo-

Great post man! Will be linking back soon. I like the fact you mention that you don’t have to save the entire amount. For my clients, typically will estimate the cost of college on the high side of inflation using a very similar calculator and then we only estimate to save 60% of the cost. Most people put too much emphais on saving for college than saving for their retirement.

One last thing you could mention (or in another post), is that you can use a Roth IRA for College Savings. All contributions have penalty free withdrawals and you would only have to pay tax on the gain if you needed to withdraw more (no 10% penalty). Plus, if you don’t end up using it for your child’s education, then you now have more saved for retirement.

By: Pinyo

Pinyo — Wed, 01 Apr 2009 14:31:03 +0000

@Patrick – Congratulation on your new arrival!

@Baker – Thank you. I really appreciate the feedback. Haven’t receive too many comments lately and yours let me know that I am on track.

I think you are on the right track and good luck with your war on debt.

By: Baker

Baker — Wed, 01 Apr 2009 14:24:48 +0000

Pinyo,

I am amazed at how thorough and detailed this post it. It is definitely one of my favorite posts of the week, thus far. I especially enjoy how you state up front that you should be out of debt and have a firm grasp on retirement savings before tackling college savings.

This year we had our first child and we were really tempted to open up an ESA (we aren’t sure what state we will be in long term), but eventually decided to focus on our personal War on Debt.

Once, again… fantastic article, great job in kicking off Financial Literacy Week!