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Published: Thursday, Oct. 27 2011 10:05 a.m. MDT

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AveragePerson
WEST JORDAN, UT

A 529 plan is not insured like your accounts with a bank or credit union. Check out the fine print at the bottom of the TV commercial for this plan.

If you really want a great way to save $ for college, check into a coverdell account at your credit union. You can deposit as little as $10 into it a month, same tax advantages, and bonus -- no fees, and it's insured, meaning you won't lose money at the end of the day.

Johnny Triumph
American Fork, UT

I'm waiting for the return of the free $20 for signing up on 5/29. They ran that promo a few years ago and I foolishly didn't sign up.

klepsydra
Longmont, CO

While a traditional savings account is insured you also need to realize by investing your money in something with such a poor return you are ultimately loosing money because your return will not keep up with inflation.

sammyg
Springville, UT

All of the cheap fees in the world cannot make a difference of throwing money at an investment and risking that money and a child's future education based upon risk in the stock market as opposed to 'saving' money, having liquidity, use and control of it without the government being your 'partner'.

There are plenty of other strategies available that make more sense and guarantee a rate of return than a government sponsored college savings plan that has as much probability of success as you going to Las Vegas and betting on 'red'.

As a nation, 'we' have been duped over the last 30yrs into thinking that investing money is synonymous with SAVING money and is somehow required for retirement and now the same for education funds since the creation of 529 plans, Coverdells, etc. It's a bunch of bunk and it's one of the many reasons our nation is in the economic shape it's in now.

Funny since the crisis has happened, that people are slowly getting out of debt by paying their bills, avoiding further debt and SAVING money.

Risking money is never a wise 'savings' strategy, especially for something you want for your child or grandchild.

sammyg
Springville, UT

cont'd

The Wall Street 'two step' does not appeal to people that are sick and tired of dancing. No longer are the days that an investment professional can pull out an Ibbotson chart and show you average returns. No one cares about averages, you need actual returns and plenty of positive ones.

Today's 339 point gain will be tomorrow's 400-600 point loss. There's no amount of certainty in the stock market in these uncertain economic times.

What's going to happen when 80 million baby boomers need their cash and tell their IRA or 401k custodian to sell and send $ when there are only 40 million buyers? It's simple math folks, supply and demand stuff.

Also why would anyone invest in a tax-differed investment or savings plan when you know taxes are going up later. Well, we don't know anything about the future but these 'funny gut feelings' about taxes and government should tell you something.

The best strategy is to avoid government sponsored plans. They can change the rules on you by a stroke of a pen. They will change taxation.

Good luck. I'm out of the stock market and teaching everyone to avoid it when possible.

K
Mchenry, IL

It really doesn't matter which savings and or investment tool you pick. The mistake people make is not starting anything at all. Starting in babyhood means a little put away will mean bigger returns cause you have longer to save. What should be done is as you closer to needing the money, years out, to start putting some aside in safe financial accounts. The savings account with less than a percent interest. It sure beats the interest which compounds during school and over the life of the studen loan payment. More people default on student loans than mortgages.

What is interesting is in some parts of the country you pay state school tuition or more for infant day care. Only there is no savings for 18 years for that.

MyChildrensKeeper
Taylorsville, UT

I think the only reason for these "Investment Plans" is not to serve anyone but those extrapolating people's income to puff up Wall Street with more cash flow to buy more debt.

The implied growth has yet to be proven, even in the retirement and 401k accounts that have all disappeared, except the accounts are still open so workers can still put more cash in the hands of Wall Street and business thugs to steal it from them. Do people really believe these plans and their promises? If so they are buying a lot of bridges that don't exist.

If a person wants to invest in the future, buy tangible growth assets. Even savings accounts are more secure with their meager interest than the Wall Street slot machines. By the time children become of age to go to college most of these accounts will not be accessible or restricted withdrawals to keep wall street afloat.

The students and children should bear the cost of earning their education and college, not the parents struggling to survive and provide home and food for a family and the parents own future. It's time for parents to get personal and selfish.

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