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Need ideas: savig bond of college fund for my Boy? $1000
Posted by: New.Dad
Date: December 27, 2005 07:25PM
Hi, a very nice friend gave a considerable sum of money to my son as a Christmas gift. I would like to invest it in a college fund or a savings bond or something else. My son is almost three months old, and he has a SSN already. He is US Citizen (I'm not). I am not sure if we will still be in the US in a few years, so I need to be able to claim the money from abroad and renew the savings bond or manage the account from abroad. Also, what happens if he cannot use the college fund (i.e. he does not attend a US college) or God forbid something terrible happens and I have to withdraw the money. (I know, one should not think of such things, but it's better to consider every possible scenario).

Anyway, I need some ideas. I will probably add some cash to make it a nice round sum ($1000).

Thanks
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Re: Need ideas: savig bond of college fund for my Boy? $1000
Posted by: AlphaDog
Date: December 27, 2005 08:19PM
You might want to check out I Bonds from the U. S. Government. They're purchased at face value, will earn interest - tax sheltered - for up to 30 years, and there are some circumstances under which they can be used for college tuition, tax free. They're certainly worth looking at.

[www.publicdebt.treas.gov]
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Re: Need ideas: savig bond of college fund for my Boy? $1000
Posted by: SteveJobs
Date: December 27, 2005 09:32PM
529 plan OR open yourself a ROTH IRA and use it for what you want.
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Re: Need ideas: savig bond of college fund for my Boy? $1000
Posted by: NewtonMP2100
Date: December 27, 2005 10:00PM
529 plan. . .if strictly for his education. . .



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Re: Need ideas: savig bond of college fund for my Boy? $1000
Posted by: Michael
Date: December 28, 2005 05:36PM
If you do 529, be careful to choose a state that allows low-cost programs. Clark Howard (money guru) suggests Utah's program that uses Vanguard. Here's his take on it: [clarkhoward.com]

Whether you do a 529 or an individual account, I'd suggest you do mutual funds (from a low cost provider like Vanguard)rather than a savings bond. With your time frame, it is very likely that an index fund will provide a vastly greater payout at college time.
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Re: Need ideas: savig bond of college fund for my Boy? $1000
Posted by: NewtonMP2100
Date: December 28, 2005 08:47PM
You can use any state's 529 but if you use the state you live in. . .you get a deduction on your state taxes. . .at least for NY. . .and they use Vanguard. . .



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