529 Plan and College Savings

Archive for January, 2007

Question: I want to invest for my 2 year old daughters future, any ideas?

I am currently receiving $158 a month for 3 years from a home I sold and partially financed. The total will be about $6,000 in 3 years and then I will invest what I can afford after that.
I opened a regular savings account for her, But with the current cost of college, and to think of the price probably doubling in 15 or 16 years, I need a plan that will yield the most money.
Is a no load mutual fund better then a 529 Plan ? (Texas)
or should I open an IRA in her name?
What is the minimum age for an IRA?

Answer: You can’t open an IRA in her name as she has no earned income. A 529 Plan would probably be best. You have a choice of investment options within a 529.

Dallas, Irving, Fort Worth Texas Mobile Fingerprinting and Notary Services