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College Investment Advice

bowhunter1023

bowhunter1023

Owner/Operator
Staff member
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Appalachia
I'm looking to start a college savings plan for my daughter with some of our tax return. Other than the Ohio 529 Plan, I am not that familiar with college savings plans. Would the 529 still be a worthwhile investment, or would I be better off to look elsewhere?
 
Buckmaster

Buckmaster

Senior Member
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Portage
The 529 plan is your best option for college savings. I use BlackRock and go with the most aggressive plan. Huntington Bank sold me both plans for each kid.
 
Archertl

Archertl

Senior Member
7,397
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Tacoma, Washington (Native Ohioan)
My parents got my sister and I 529 when we were babies. I have never had a problem using it during my first two years of collage prior to joining the Air Force. I use the GI bill now and have transfered whats left of my 529 to my sister. I think it would be a good thing for you to get for your daughter if you and your family plan to stay in Ohio for the next 18 plus years. Neither my sister or I have had any problems using ours.
 
Buckmaster

Buckmaster

Senior Member
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Portage
Jesse said:
Time to get it up and running!
Click to expand...

In the long run you will be happy with yourself.

A simple life insurance policy will be helpful for your daughter as well. At her age they are cheap. I bought each of my kids a $20,000 whole life policy. It guarantees them insurability in the future and they can make additional purchases up to 10 times when they get older too. Two two paid up policies for $20,000 each was about $ 4,000.00. It's peace of mind for me and an investment for them. My neice's burial expenses was about $13,000 in 2009. I'd be willing to trade $ 4 grand any day for $ 40 grand.
 
bowhunter1023

bowhunter1023

Owner/Operator
Staff member
49,283
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Appalachia
I hear ya there Ben. We both have $10K policies on her through work that will start when she is 6 months. I thought about a whole life TOO, it we're not really in the position financially to do that. Her term policy through my work is $1.60 a pay check, $43.20 a year.
 
Buckmaster

Buckmaster

Senior Member
14,473
205
Portage
$ 1,000.00 now will buy you $10,000 guaranteed later, offer guaranteed insurability for life no matter what health issues may occur, plus provide opportunities for her to purchase additions from 18 to 25.

Having buried one kid placed strong feelings with me of this wise investment. Two things in life, Taxes and Death.

If you wait until next year your premiums will have risen. You have from now until 11 month if you wish to buy at the lowest price point possible.
 
hickslawns

hickslawns

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Supporting Member
40,167
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Ohio
I agree 100% on the whole life. Pay whatever you can afford. If it is one less trip to BW3/month for you, then you do it. Seriously. $20-25/mo will lock her into a policy at the cheapest rate she will ever be able to buy it again. I want to say $25/mo got us around $50k in life insurance or maybe it was $25k. Dang I forget now. Hope I never find out either.

I believe there are only 2-3 reasons it can be drawn on (without penalty). 1) College. 2) First home purchase. 3) Financial Hardship

Northwestern Mutual Life Insurance is the only way to go when it comes to this one.

Wish I could help you on the college plan. My kids can figure it out on their own. That is what my wife and I had to do. I have watched way too many kids piss away their parent's money smokin/jokin/drinkin their way straight to the status of "college dropout". If our kids "happen" to get their college paid off as a graduation present, then good for them. While they are in school though, they are on their own. They need to learn how to swim on their own. (In all fairness, my wife doesn't share these feelings. lol)
 
aholdren

aholdren

Senior Member
Supporting Member
5,176
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South East Ohio
hickslawns said:
I agree 100% on the whole life. Pay whatever you can afford. If it is one less trip to BW3/month for you, then you do it. Seriously. $20-25/mo will lock her into a policy at the cheapest rate she will ever be able to buy it again. I want to say $25/mo got us around $50k in life insurance or maybe it was $25k. Dang I forget now. Hope I never find out either.

I believe there are only 2-3 reasons it can be drawn on (without penalty). 1) College. 2) First home purchase. 3) Financial Hardship

Northwestern Mutual Life Insurance is the only way to go when it comes to this one.

Wish I could help you on the college plan. My kids can figure it out on their own. That is what my wife and I had to do. I have watched way too many kids piss away their parent's money smokin/jokin/drinkin their way straight to the status of "college dropout". If our kids "happen" to get their college paid off as a graduation present, then good for them. While they are in school though, they are on their own. They need to learn how to swim on their own. (In all fairness, my wife doesn't share these feelings. lol)
Click to expand...

We done the same for ours Phil. Jesse your on the right track, now is the perfect time to start. Not to up on the 525, but is it true that if you get an Ohio 529 that you have to use it in Ohio for it to be tax free.
 
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