Skip to main content
No. of Recommendations: 0
I was telling my friend about the beauty of Roth-IRA and the option of using those funds for her kids college if necessary.

My friend is not sure because another couple she knows told her about the NY State College Savings Program.

It's tax-free for NY State Taxes, and you can put away 10,000 a year, which is taken off the top of your income. BUT
I called the program and ask about the investment vehicles they are using.
For a child born in 1992 they invest 45% in stocks and 55% in Bonds. The parent cannot control how it is invested. In 1999 the fund had a total return of 11.40, well below the S&P 500.

Yet the tax benefits are tempting. (though they do not help with Federal Tax.

So, Which is better? How can we compare those two options?
I'd appreciate any clues.

Clueless, Ora.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.