In your opinion, what are options for starting an account for the grandchildren. Savings/CDs/Savings Bond etc....Say for a college eduation 18 years from now?
There used to be a program that you could pay the State (Not sure on this) a monthly fee and after the child reaches his/her graduation the tuition is paid for. I'm reaching here on the facts so they may not even be close. Any thoughts or insights on this would be helpful, other than just starting a savings account in their name. Logistically speaking, that is nearly out of the question.
7 comments:
I think the program you are talking about is the Texas Tomorrow Fund. First Financial Bank Bridgeport/Decatur offers a saving account for kids under 12 with no fees.
Honey I left my phone in the truck when I took Cole, won't be able to get it for another hour or 2.
Thanks for gathering savings info for the gbabys.
Love you
Speaking from first hand experience: Texas Tomorrow Fund! We have one in school on it now! Best/Smartest thing we EVER did as parents. Locked in at $24 an hour (tuition is nearly $145/hour where he is in school). It's VERY different now than it was originally, but still....I VERY HIGHLY RECOMMEND IT! No savings account will ever earn what "locked in" tuition will save you! Search it on web----read carefully and ask questions. (it used to be very straight forward---lots of options now).
Open a 529 account and anyone can contribute to it. The interest is not taxable as long as it is used for education.
I give my goddaughter yearly savings bonds. Don't know what the best longterm college plan would be for grandchildren, but it sounds as though you're getting a lot of great advice!
I agree with the 529! The Texas fund is nonrefundable if they do not go to college.
They stopped offering the Texas Tomorrow Fund in September of 2003...two weeks after I signed up my newborn daughter. The fund is now bankrupt, but the State of Texas is still honoring the accounts that are outstanding (Thank You Lord). The "new" option is called the "Texas Guaranteed Tuition Plan". You or anyone else can buy hours for the child. Good luck!
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