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Financial Planning / Paying For College
|Subject: I have a hard time justifying...||Date: 12/27/2005 12:50 PM|
|Author: 38Packard||Number: 6506 of 8098|
... contributions to a 529 account.
I have actively invested my 2 kids gifts to minors accounts (UTMA) for the past 10 years or so. Here are the numbers:
My daughter is about to hit college age. She is currently a Junior in High School. My financial planner suggested that I fund a 529 account for each child to grow those savings tax-free.
However, when I downloaded the 529 Starter Kit from Fidelity, the Massachusetts U.Fund has limited investment choices, marginal returns, and high fees.
I am thinking that I may just fund a regular brokerage account (in my wife's and my name) that I can actively manage and pay the long-term capital gains taxes on those investments instead of the crappy 529.
Has anyone else done this research and come to the same conclusion? I'd appreciate any feedback on this.
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