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Post by nihalagha on Jan 27, 2013 21:00:43 GMT -5
Saving for College: As the title implies, this area will cover the various savings options/ instruments available to parents and grandparents to fund their children's college education (post secondary education - beyond grade 12) which includes two year Associate's degree, Bachelor's degree or advanced Graduate programs such as Master's and PhD. Applying to Colleges (Admissions) and Scholarships is covered under a separate heading elsewhere on this board.
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Post by syedakhanum786 on Jul 31, 2013 18:01:41 GMT -5
I am thinking of saving for college for my son who is in lower school. I am not sure if I should take a 529 or a guaranteed fixed rate insurance plan which I can cash in when my son will go to college about 10 years from now. What is your recommendation? 529 is just another insurance plan, isn't it?
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Post by nihalagha on Aug 8, 2013 17:00:31 GMT -5
Genreally speaking, Fixed rate insurance plan is not a good tool to use if the money is needed in 10 years. Insurance policies should only be used if there is a need for buying life insurance, also the cash outlay needed to fund such (cash value life insurance) plans is generally higher.
529 plans are not insurance plans. They are savings/investment vehicles offered by each state to save money specifically to fund post-seconday education (College education as well as Asscoiate's degree). Various choices offered to invest in mutual funds or savings accounts, money grows tax-differed, no taxes on the growth and principal amounts as long as money is used for edcuation expenses at qualifying colleges/universities.
Without knowing your complete financial situation, it is not possible to give specific recommendations.
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