529 Plan and College Savings

Archive for March, 2009

Question: My grandma keeps telling me she is going to get my child gerber life insurance?

She is old, and not very “there”.
Now, I know enough about money to know that life insurance on a kid is a horrendous idea.
You are better off putting the money in a savings account.
Plus, we have money in a savings for this.

Why is she so darn instant.
it’s every single converstation almost.
How do I say NO – so she remembers this?
Are all grandmas like this?
Or is she just getitng junk mail and then thinking about her grandchildren?

I wish she would say – does your kid have a 529 Plan?
Can I donate money to it?
How can I bring up this idea?
Do I just say give us the money instead so we can save it for college?
Would you just give up and let her open this insurance policy just to make her happy?

Answer: Toni, you approach her and explain that you and your husband can easily handle burial expenses if a tragedy occurs, but you are struggling to fund the 529 Plan. Hint, hint.

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