Kids savings for education what are the best option here in USA

[Spartan]

1 minute ago, littlestar said:

half 401k naku save chesi pettukunta..rest for kids man

same here.

[Spartan]

BTW..for those who are not familiar with 529 college plan...

 

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529 college plans

Operating in a fashion similar to a Roth IRA, 529 college savings plans allow parents to invest after-tax money into diversified, low-cost stock and bond funds and then withdraw the money tax-free for qualified education expenses.

Some age-based investment packages work like a target-date fund in your 401(k) – contributions are placed in stock-heavy investments when the child is young, then automatically reallocated to a higher percentage of bonds and even cash as the child nears college age.

These plans offer big tax advantages, says Craig Parkin, a managing director at TIAA-CREF, the investment organization that administers state-sponsored college savings plans in California, Kentucky and other states.

“The gains on the accounts are tax-deferred, and once the funds are used to pay for qualified tuition expenses, parents will never pay taxes on those funds,” he says.

Money in these accounts can be used for undergraduate or graduate studies at an accredited two- or four-year campus in the United States. Savings in a 529 plan belong to the parent, not the child.

“A 529 college savings plan is considered a parent’s asset because the parent is the account owner and they can change who the beneficiary is,” Parkin says.

While you are taking on an investment risk, such as the fund dropping in value just as your kid enters school, you’re also making another gamble. What if your kid doesn’t want to actually go to college? What happens to the money then?

You do have some flexibility.

“If the child says they don’t want to go to college, the parents or whoever owns the account can change the beneficiary,” says Kelly Campbell, CFP professional and founder of Campbell Wealth Management in Alexandria, Virginia. “That way, you know the money will be used for education.”

One change in the recent GOP tax bill allows 529 plans to be used for non-college expenses, like a private high school.

Still, if you don’t actually use the money for education, you’ll be subject to a similar penalty for early withdrawal from your 401(k). 529 college savings funds can be withdrawn tax-free only for qualified education expenses, including tuition, books, fees, supplies, and room and board. Money spent on unqualified expenses is subject to income tax and a 10 percent penalty on earnings.

There are also restrictions on how money in these plans can be invested. For instance, account owners can switch the investments in their plan only twice a year.

Three in 10 parents use a 529, according to Sallie Mae, with about $5,500 saved. Unfortunately, that’s not nearly enough. Financial advisers recommend you save $300 to $400 a month to cover two years of public college costs.

[Demigod]

Just now, littlestar said:

entha aithundochhu anukuntunnav? 

if u send them to community college peddaga avvavu..if u send the to big league chala ekkuva avtai hundred thousands lo

[WHAT]

15 minutes ago, Demigod said:

main problem ade kada 25 - 30 years vachina kuda inka vadi life maname design cheyali ani chustam.. that used to be our parents time pass...same manaki kuda ade time pass activity ..coz we dont have any other work or personal life...

+1 later on vadiki pelli cheyali... kodali mida chadilu cheppali..... manavadu manavaralu vaste vallatho adukovali 

pilla lu putuudu late aithe edvali roju 

[Spartan]

Prepaid tuition plans

A prepaid tuition plan is an alternative to a 529 savings plan that may appeal to some parents. Designed for parents who are sure that their child will attend an in-state public university, this plan allows parents to simply pay for tuition credits in advance at a predetermined price.

Prepaid 529 plans retain the same tax, financial aid and parental protections as 529 college savings plans, but without being subject to swings in the stock market.

“The major limitation to a prepaid plan is that if the child decides to go to school out of state, they’ll get a return on their money, but they won’t get the full value of the plan,” Parkin says. “For example, if someone bought one year of tuition at a Kentucky state school for $12,000 and now tuition is up to $20,000, they would get a full year of college. If they decide to go to school in, say, Ohio, they would get a return — probably $13,000 or $14,000 — but they wouldn’t get the full $20,000.”

Like 529 college savings plans, prepaid plan holders can change beneficiaries at any time, but must pay a 10 percent penalty plus income tax on funds used for anything other than college tuition.

“You can have the prepaid plan to pay for tuition and a 529 college savings plan to pay for other expenses,” Parkin says.

[Demigod]

Just now, WHAT said:

+1 later on vadiki pelli cheyali... kodali mida chadilu cheppali..... manavadu manavaralu vaste vallatho adukovali 

pilla lu putuudu late aithe edvali roju 

ive kada mana madyataragathi anubandhalu apyayatalu..

[littlestar]

2 minutes ago, Spartan said:

BTW..for those who are not familiar with 529 college plan...

 

===================================================

529 college plans

Operating in a fashion similar to a Roth IRA, 529 college savings plans allow parents to invest after-tax money into diversified, low-cost stock and bond funds and then withdraw the money tax-free for qualified education expenses.

Some age-based investment packages work like a target-date fund in your 401(k) – contributions are placed in stock-heavy investments when the child is young, then automatically reallocated to a higher percentage of bonds and even cash as the child nears college age.

These plans offer big tax advantages, says Craig Parkin, a managing director at TIAA-CREF, the investment organization that administers state-sponsored college savings plans in California, Kentucky and other states.

“The gains on the accounts are tax-deferred, and once the funds are used to pay for qualified tuition expenses, parents will never pay taxes on those funds,” he says.

Money in these accounts can be used for undergraduate or graduate studies at an accredited two- or four-year campus in the United States. Savings in a 529 plan belong to the parent, not the child.

“A 529 college savings plan is considered a parent’s asset because the parent is the account owner and they can change who the beneficiary is,” Parkin says.

While you are taking on an investment risk, such as the fund dropping in value just as your kid enters school, you’re also making another gamble. What if your kid doesn’t want to actually go to college? What happens to the money then?

You do have some flexibility.

“If the child says they don’t want to go to college, the parents or whoever owns the account can change the beneficiary,” says Kelly Campbell, CFP professional and founder of Campbell Wealth Management in Alexandria, Virginia. “That way, you know the money will be used for education.”

One change in the recent GOP tax bill allows 529 plans to be used for non-college expenses, like a private high school.

Still, if you don’t actually use the money for education, you’ll be subject to a similar penalty for early withdrawal from your 401(k). 529 college savings funds can be withdrawn tax-free only for qualified education expenses, including tuition, books, fees, supplies, and room and board. Money spent on unqualified expenses is subject to income tax and a 10 percent penalty on earnings.

There are also restrictions on how money in these plans can be invested. For instance, account owners can switch the investments in their plan only twice a year.

Three in 10 parents use a 529, according to Sallie Mae, with about $5,500 saved. Unfortunately, that’s not nearly enough. Financial advisers recommend you save $300 to $400 a month to cover two years of public college costs.

 

[WHAT]

i think vache 3-5 years lo india lo unna chana mandi young  crowd bachelors ke abroad velle laga unnaru

relatives lo iddaru porallu SAT prepare avuthunnaru ..... inter lo unnapude ee range focus a anukunna

[Mitron]

2 minutes ago, WHAT said:

+1 later on vadiki pelli cheyali... kodali mida chadilu cheppali..... manavadu manavaralu vaste vallatho adukovali 

pilla lu putuudu late aithe edvali roju 

 

Just now, Demigod said:

ive kada mana madyataragathi anubandhalu apyayatalu..

chavu okkate migilindi

[WHAT]

1 minute ago, Demigod said:

ive kada mana madyataragathi anubandhalu apyayatalu..

anthe 

[Spartan]

4 minutes ago, littlestar said:

entha aithundochhu anukuntunnav? 

example: Calif lo unna kid..if he/she wants to go to MIT or Cornelll..

they are considered out of state students..so additional fee for them...

and fee is around 70K/year all expenses etc covered.. if they are smart enough..may get tution waiver or scholarship..most of tge time 50% untadi..or more..

so u r looking around atleat 50K per year..for big schools.. (with current price)

state colleges ki avg ga 30K aitadi per year...

 

[littlestar]

1 minute ago, Spartan said:

example: Calif lo unna kid..if he/she wants to go to MIT or Cornelll..

they are considered out of state students..so additional fee for them...

and fee is around 70K/year all expenses etc covered.. if they are smart enough..may get tution waiver or scholarship..most of tge time 50% untadi..or more..

so u r looking around atleat 50K per year..for big schools.. (with current price)

state colleges ki avg ga 30K aitadi per year...

 

unna illu ammesthe aipothadi antav 

[Spartan]

3 minutes ago, littlestar said:

unna illu ammesthe aipothadi antav 

neeku amamdaniki adaina ..undi..naaku edi ledu ga...state college ke pampicnhali..

paina example ma collegue di...he held on to our stocks..every year stocks ammesi fee kattadu....ma stock mahima..

but naaku a chance untado undado..ma ammai school ki velle time kalla..

Cornell lo under grad finish chesi..ma apice lo ne full tiem join aindi.. H1 picked in lottery...

abba kuturlu iddaru coming and going to office together...

[littlestar]

6 minutes ago, Spartan said:

neeku amamdaniki adaina ..undi..naaku edi ledu ga...state college ke pampicnhali..

paina example ma collegue di...he held on to our stocks..every year stocks ammesi fee kattadu....ma stock mahima..

but naaku a chance untado undado..ma ammai school ki velle time kalla..

Cornell lo under grad finish chesi..ma apice lo ne full tiem join aindi.. H1 picked in lottery...

abba kuturlu iddaru coming and going to office together...

90% bank di aa illu naadi kadu

maa company stocks konukko nuvvu kuda same car lo povachhu

[Spartan]

Just now, littlestar said:

90% bank di aa illu naadi kadu

maa company stocks konukko nuvvu kuda same car lo povachhu

CAT..?   or recent ga ekkado marinav annav..ekkada..