Investing for education - 17 years to go

I'm hoping someone can offer their opinion on what I should be doing to
invest for my newborn's future college education. Some background, my
wife and I (both 30) have been making contributions to our Vanguard
Roth IRA for the past 6 years. We live in California. Are there any
investment similar to an IRA, that could possibly offer tax benefits?
Pros/Cons? Any advice would be greatly appreciated. Thanks.

Jason

Re: Investing for education - 17 years to go

wrote:
> I'm hoping someone can offer their opinion on what I should be doing to
> invest for my newborn's future college education. Some background, my
> wife and I (both 30) have been making contributions to our Vanguard
> Roth IRA for the past 6 years. We live in California. Are there any
> investment similar to an IRA, that could possibly offer tax benefits?
> Pros/Cons? Any advice would be greatly appreciated. Thanks.

QTPs - Qualified Tuition Plans are exempt from federal income tax.
Since state declarations may vary on how a federal provision is
sectionalized, the state implementation will need be evaluated for
applicability fitted to circumstances on an individual financial bases.
This is a link common to state treasures for information -
- where there may be documentary links
for routing into your state 529 plans from Sacramento. Others contacts
would be the adminstrative office at a local college, directly for
forms or counseling services, or through a participatory investment
firm within state strictures.

"Somewhere between 'arson' and 'artery' lies art."

Re: Investing for education - 17 years to go

Flasherly wrote:
>
> wrote:
> > I'm hoping someone can offer their opinion on what I should be doing
> > to invest for my newborn's future college education.
> > [...]
>
> QTPs - Qualified Tuition Plans are exempt from federal income tax.

However, they won't be when this child goes to college, as the law
currently stands. The federal income tax exemption will expire in 2010.

From the Federal government: "Income tax laws are a work in progress.
The current statute regarding 529 plans expires in 210, and there are no
guarantees what Congress will decide to do afterward."


You can make whatever prognostications you wish; what I wrote above is
the current tax law. Personally, I think that 529 plans can serve a
useful purpose even if not tax-free, but the choice of education
investment vehicle is not quite as clear cut as one might have thought.

--
Mark Freeland

Re: Investing for education - 17 years to go

Mark Freeland wrote:
> You can make whatever prognostications you wish; what I wrote above is
> the current tax law. Personally, I think that 529 plans can serve a
> useful purpose even if not tax-free, but the choice of education
> investment vehicle is not quite as clear cut as one might have thought.

More than useful should there be a plan to continue to foster
education, even if not in a form presentable today. Qualifying for
gift and inheritance, as well for transferable tax intent, at a cap at
$250,000 and possibly higher, there's certainly no mistaking a sizable
amount estate planning has to account for attendant taxes. Within two
years prior to a vantage education has ostensibly to lapse, 529
contributions are expected to eclipse $150 billion, a compound of 40%
per-annum growth since 1992, according to a private sector survey.
Then, there's going to be the usual slavish divergences between state
tax components, advantageous to some while less to others, to which, I
might as well add a middling for arbitration from the NASD and SEC for
partiality within underlying state-sponsored firms outright
misrepresentation of instruments, as qualified by original tax intent,
supplanted and undisclosed for more lucrative venture plans elsewhere;
.. . . Interesting the NASD wouldn't disclose the identity of the firms
at the time. But, as things go that are bound to get better, the
sprokets manufactured with tighter fittings and levers easier to pull:
Of an eighth measure marketing presently sells by 529 plans, the top 10
big firms namesakes veritably have evolved to the selfsame
seven-eighths assets vested education firms, at present, monitor.
Quite a lug for whatever 2010 conceivably bodes, yes, I'd have to agree.

Re: Investing for education - 17 years to go

wrote:
> I'm hoping someone can offer their opinion on what I should be doing to
> invest for my newborn's future college education. Some background, my
> wife and I (both 30) have been making contributions to our Vanguard
> Roth IRA for the past 6 years. We live in California. Are there any
> investment similar to an IRA, that could possibly offer tax benefits?
> Pros/Cons? Any advice would be greatly appreciated. Thanks.

Some of the best information on the Internet can be found at




--
Steven D. Litvintchouk
Email:

Remove the NOSPAM before replying to me.

Re: Investing for education - 17 years to go

Steven L. wrote:

> Some of the best information on the Internet can be found at
>

Oh, goodie ... multiple choices.

Should the states be removed from the 529 plan business? (2005-12-09)
Ban them 47% (96 votes)
Allow financial institutions to offer 529 plans too 32% (66 votes)
Keep states in charge 16% (33 votes)

Which would you choose - 529 or ESA - if you had $2,000 to save for
college? (2005-10-23)
529 Plan 60% (668 votes)
Coverdell ESA 36% (394 votes)

Is the 2010 "sunset" of the 529 tax exclusion affecting your use of 529
plans? (2005-09-13)
More money into 529 plans upon permanent exclusion. 51% (430 votes)
Does not affect my use of 529 plans. 31% (260 votes)
Huh? 19% (160 votes)

Should states be required to open up their 529 deductions to
out-of-state 529 plans?
Yes 86% (793 votes)
No 11% (104 votes)

What is the fairest way to treat 529 assets for financial aid purposes?
More heavily than non-529 investments 7% (21 votes)
Same as non-529 investments 42% (122 votes)
Count them less heavily than non-529 investments 51% (146 votes)

What do you think of our new website?
Stupendous 55% (53 votes)
Needs work 16% (15 votes)
Old site is better 29% (28 votes)
Immunity claimant working for the Dept. of Interpolation. (1 vote)