529 Plan and College Savings

Archive for February, 2009

Question: How should I spend a $10,000 winning ticket?

I have a few checking and savings accounts. I have a Roth and other investment accounts. I have college savings funds for my kids since they were babies, I have my new car almost paid off. I am in the process of buying a new house. My husband and I are almost legally divorced and I am getting a steady income from my business the business I created and continue to a sales generator for. I am by no means Rich, but It’s not like I need anything. In a way, I kind of feel like it giving it away, like to ione of my brothers, or parents. But my parents are well off. Hmmm. what to do? It’s burning a hole in my pocket!

Answer: Invest half of it in your kids’ college education…the more the better and the other half make a charitable contribution to the March of Dimes on behalf of your children…or donate some playground equipment to a park that you and your children attend, in their names. If you have a homeless shelter donate the money, specifically earmarked for things like bedding or hygiene products for the people who use their services. What about a Safe Home for battered woman? What about a college scholarship…you’d have to contact your local college, but something for woman who are recently divorced and trying to improve their life situation?

Was there a club or organization that you were in when growing up, such as girl scouts, or 4-H? When a relative died in my family they donated to the county 4-H for college scholarships.

Best of luck! You may be able to find something to spend it on, but it won’t be near as rewarding as if you donated it to a good cause…and on a business side it is tax deductible?

Q&A with Gretchen and Paige brought to you by State Farm