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Old 01-31-2013, 03:53 PM   #3 (permalink)
Mann
MCB Member
 
Join Date: Feb 2007
Location: In a house in TN

I have a 529 for my child (or possibly children as a 529 can be transferred to any child or grandchild). We don't put in nearly enough money, but do make quarterly contributions.

Another thing we setup for our child is a minor IRA or sometimes called an adult to minor IRA. They are the owner, but we(the parents) are the controllers of the account until they are 18 (or 21 depending on your state iirc). The nice thing about it is that the interest grows tax free(actually it grows at his tax bracket which is tax free), it is investable (that may not be a word) in several mutual funds, and can be used toward first cars, first houses, college, etc. We choose a fund that is very conservative for our child as I don't want to take risks with anyone's money but my own.

I personally went to college, but do not want to force my child to go (I will, but don't want to). I figure this way he can use the money on whatever he wants. Hopefully I will teach him to be responsible before he gets it.
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