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Financial Planning / Paying For College


Subject:  Re: Any Ideas ? Date:  7/27/2001  5:07 PM
Author:  KenpoKate Number:  4093 of 8571

Well I don't have the min and I have no idea where to put it now......doesn't anyone support building funds like this anymore ?

There are lots of ways to continue saving $50 a month and having it grow for your daughter. You might look at or for example. You will have to pick up higher transactions fees there, but you will be able to choose from a variety of exchange-traded index funds such as SPY. You can also set up a DRIP into a specific stock.

Double-check your records to be sure how much you've actually invested in the account. American Century evaluates whether accounts meet the minimum by the amount invested instead of the current value. If you've invested more than $2500, you shouldn't be swept, even if your current value is $1400.

Most companies do not support the "$50 a month" minimum anymore. Too many people ended up using their investment accounts like savings accounts -- a few bucks in, a few bucks out -- which increases the expenses of the fund company exponentially. It just hasn't worked out to be a good model. If you can, you might try using a savings account to save up the other $1100 to meet the minimum.

Most of all, it would be nice to find a way to hang on to your shares at American Century until they recover somewhat.

- KK

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