As I'm watching H absorb his "Little Einsteins" today, I wanted to ask y'all about your opinions on saving up for his future college education.
One thing Mr. Smith and I wanted to do for his first Christmas was to have some sort of account already open, so we (and family) can deposit some moola in there to get it going.
And then we looked at all the accounts (and varying opinions) and were a little gobsmacked.
ESA? 529? Custodial Account? Regular Savings?
I've got a basic understanding of each, with their respective ups and downs, but we still haven't pulled the trigger on any one sort of account.
And Christmas is RIGHT AROUND THE CORNER.
I'm a big believer in higher education, but also a big believer in the idea that the standard "4-year university experience" isn't for everyone. Hypothetically speaking, if Mr. Smith and I save up moola for H for 18 years, and then he decides the college route is not for him or he gets a full-ride (Please Sweet Lord, let it be so! Could we have a future Crimson Tide quarterback with a 32 ACT score? A mom can dream, right? ), what do we do with the moola saved? Get penalized or taxed for it?
Sigh.
What to do... what to do....what to do...
Anybody have any ideas on this subject???
I'm just catching up on your blog and I'm not a ton of help, BUT you would probably do best to talk to a CPA or financial advisor. Because they'll have a better knowledge of your finances, they will be able to steer you in the right direction.
ReplyDeleteI would love a quarterback with a 32 on his ACT. G Mc did well for us!