MrsFish
March 31st, 2009, 5:13 pm
I need help deciding if we should get a 529 plan for our daughter. We are in our early 30's and have only my small moderately aggressive 401k as far as investments. We are considering a few things... First maybe we should get an IRA since my husband doesn't have a 401k? Second, and heaviest on my heart, we have an 8 month old who I need to send to college someday. We only have a tiny handful of dollars to invest. Which should take priority IRA or 529? We realize that as long as we are saving money not spending it we are young enough that our investments will have time to recover any losses that we see from the socialist agenda devastating our country today. Maybe we should buy gold? Any advice would be great. I am very new to all this parenthood, investing and worry.
chris13
March 31st, 2009, 5:58 pm
I would say it depends on what state you're in. In Florida, we have a guaranteed tuition program, but it's not really a 529. It locks in today's tuition and is based on the number of years until high school graduation. Washington state (where I currently am), has a similar program called GET. But do be wary of them though. My wife had her daughter in a similar program in Ohio that went belly-up a few years ago. Now she's trying to figure out how to get what little is left in the account out of it.
If you do opt for a 529, just be prudent in the investments, just like you would in an IRA. If you can afford it, I'd look at getting both the IRA and the 529. Try and protect your retirement and your child's future as best you can. It's tough, and I wish you the best of luck.
Being a parent is the toughest job you'll ever love. My daughter is 15 now, and I wouldn't trade any of it, even all the frustration, worry and headaches that go with it. It's a package deal, but it can be very satisfying in the long run.