529 Savings For your Kids

[DangerRanger]

The roll into a Roth is the kids Roth though right? Not yours?

yep, not a vehicle for your own investment

 

[ColPenguin]

I choose to do an utma for my two instead of the 529. I didn’t like the idea of it being locked into education. My thinking was if I can cash flow future schooling then I can give them that to help start their life. Then if they by chance start up something and end up not in school it’s not locked up.

Doing same thing for same reason. I don't want that money earmarked for school exclusively.

Tax incentives are always meant to incentivize certain behaviors. The incentive isn't worth it to take a long-term gamble on what happens to higher education 15 years down the road. The UTMA can still be used for education, will be a good start and there will be no strings attached.

 

[Maverick1]

I’m sure there is an awesome financial advisor but after interviewing a few I haven’t found one yet. Advisor that set up my 529 placed me in a target date fund for a 1 year old.

I’ve probably learned more about investing here and Reddit than anywhere else.

He is a financial advisor......

 

[SDHNTR]

Also they want to make it seem complicated to….get you to use an advisor.

It’s not complicated.

It’s not complicated, until it is.

 

[SDHNTR]

I’m sure there is an awesome financial advisor but after interviewing a few I haven’t found one yet. Advisor that set up my 529 placed me in a target date fund for a 1 year old.

I’ve probably learned more about investing here and Reddit than anywhere else.

Target date funds work for those who want to out minimal thought into the process. For those, it’s better than nothing. Set it and forget it. They also work for investors who think they can time the market and/or are a danger to themselves. That’s actually probably most investors.

But for those who want to have a direct hand in things, yes, there are better ways.