Comments on: Saving for College – 529 Plans & Coverdell ESAs http://www.bargaineering.com/articles/saving-for-college-529-plans-coverdell-esas.html personal finance blog with anecdotes, advice and commentary. Sun, 12 Feb 2012 23:30:41 +0000 hourly 1 By: Dave http://www.bargaineering.com/articles/saving-for-college-529-plans-coverdell-esas.html/comment-page-1#comment-294057 Dave Wed, 24 Dec 2008 21:46:26 +0000 http://www.bargaineering.com/articles/saving-for-education-in-a-nutshell-college-tuition-coverdale-esas-and-529-plans.html#comment-294057 After just finishing helping to put my daughter through college, I'll make a couple of observations: 1. It's darn near impossible to try and save for every college expense. In those 18 years between birth and freshman year, life happens. You buy a house, you change jobs, the car breaks down, you buy a new car, etc. We set some money aside years ago in I bonds (enough to pay a couple years of tuition) but I decided to just pay tuition out of current income because it would just pain me to cash out something that is getting a safe 8.5% return. 2. Hopefully, your child will be industrious. My daughter always worked part time (full time over summer breaks), applied for scholarships ($100 here, $500 there) and pretty much supported herself all four years at college. I paid her tuition (as I promised to do when she was in high school) but I told her early and often she'd have to provide for her other expenses. And she did! And I'm very proud of her and tell her that often. She also loves her independence saying it is a very freeing thought to be able to come and go from her own apartment whenever she wants without having to "check in." LOL! After just finishing helping to put my daughter through college, I’ll make a couple of observations:
1. It’s darn near impossible to try and save for every college expense. In those 18 years between birth and freshman year, life happens. You buy a house, you change jobs, the car breaks down, you buy a new car, etc. We set some money aside years ago in I bonds (enough to pay a couple years of tuition) but I decided to just pay tuition out of current income because it would just pain me to cash out something that is getting a safe 8.5% return.
2. Hopefully, your child will be industrious. My daughter always worked part time (full time over summer breaks), applied for scholarships ($100 here, $500 there) and pretty much supported herself all four years at college. I paid her tuition (as I promised to do when she was in high school) but I told her early and often she’d have to provide for her other expenses. And she did! And I’m very proud of her and tell her that often. She also loves her independence saying it is a very freeing thought to be able to come and go from her own apartment whenever she wants without having to “check in.” LOL!

]]> By: Bob http://www.bargaineering.com/articles/saving-for-college-529-plans-coverdell-esas.html/comment-page-1#comment-294040 Bob Wed, 24 Dec 2008 15:25:05 +0000 http://www.bargaineering.com/articles/saving-for-education-in-a-nutshell-college-tuition-coverdale-esas-and-529-plans.html#comment-294040 Before a 529 plan a parent should consider the Monetta Young Investor Fund(MYIFX). You can use either a Coverdell or UGMA account. This is one of the few funds that actually gets kids involved in the savings process with a financial literacy component and offers college tuition credits that can offset up to one-year tuition cost at over 220 colleges. The minimum investment is $100 with a $25 monthly AIP. Before a 529 plan a parent should consider the Monetta Young Investor Fund(MYIFX). You can use either a Coverdell or UGMA account. This is one of the few funds that actually gets kids involved in the savings process with a financial literacy component and offers college tuition credits that can offset up to one-year tuition cost at over 220 colleges. The minimum investment is $100 with a $25 monthly AIP.

]]> By: Financial Fellow http://www.bargaineering.com/articles/saving-for-college-529-plans-coverdell-esas.html/comment-page-1#comment-294024 Financial Fellow Wed, 24 Dec 2008 03:17:56 +0000 http://www.bargaineering.com/articles/saving-for-education-in-a-nutshell-college-tuition-coverdale-esas-and-529-plans.html#comment-294024 No big. From my point of view $279K might as well be $515K. : ) Thanks for the info on Coverdell. I had a pretty solid understanding of 529 plans but wasn't as familiar with Coverdells. You don't hear much about them now-a-days. No big. From my point of view $279K might as well be $515K. : )

Thanks for the info on Coverdell. I had a pretty solid understanding of 529 plans but wasn’t as familiar with Coverdells. You don’t hear much about them now-a-days.

]]> By: jim http://www.bargaineering.com/articles/saving-for-college-529-plans-coverdell-esas.html/comment-page-1#comment-294020 jim Wed, 24 Dec 2008 02:11:41 +0000 http://www.bargaineering.com/articles/saving-for-education-in-a-nutshell-college-tuition-coverdale-esas-and-529-plans.html#comment-294020 That's a good point, I didn't discount it for inflation, Thanks Financial Fellow. That’s a good point, I didn’t discount it for inflation, Thanks Financial Fellow.

]]> By: Financial Fellow http://www.bargaineering.com/articles/saving-for-college-529-plans-coverdell-esas.html/comment-page-1#comment-294015 Financial Fellow Wed, 24 Dec 2008 01:55:10 +0000 http://www.bargaineering.com/articles/saving-for-education-in-a-nutshell-college-tuition-coverdale-esas-and-529-plans.html#comment-294015 I agree that college costs are getting scary high. That said, I don't think it is correct to look at the $30,000 price tag and map out a 20 year return of 7%. $515,000 in today's dollars looks like a lot more than $515,000 will 20 years from now. If you figure inflation is 3% per year your actual annual cost increase is only 4%. After 20 years, using FinAid's calculator you will wind up with $279,000 - adjusted for inflation. That number is still a hefty chunk of change that you will need to save up. But, it doesn't pack quite the psychological blow that $515,000 does. I agree that college costs are getting scary high. That said, I don’t think it is correct to look at the $30,000 price tag and map out a 20 year return of 7%. $515,000 in today’s dollars looks like a lot more than $515,000 will 20 years from now. If you figure inflation is 3% per year your actual annual cost increase is only 4%. After 20 years, using FinAid’s calculator you will wind up with $279,000 – adjusted for inflation. That number is still a hefty chunk of change that you will need to save up. But, it doesn’t pack quite the psychological blow that $515,000 does.

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