mamboking

I want to start a college fund for my kid, but I don't know whether to go with a 529 plan or Roth IRA. What's your opinion??

These are my thoughts .....

The 529 plan only allows me to withdraw the money penalty free for educational purposes, but the possibility exists that Junior may not want to go to college. Also, investing is very restrictive and you are at the mercy of the 529 plan provider selection of funds.

On the other hand, Roth IRA's earnings can still be used for education purposes (I think ), and you get full control of the investments, but it is limited to 4K annually.

BTW, I am doing pretty good with my 401K plan, so at the moment I don't have a Roth IRA.

anothercls

A good financial advisor should be able to help out with this entirely. I think you can max out the 529 with 22,000/year, depending on the state.

My boss mentioned about his friends having saved $160,000 for their daughters education and she decided to go to the school where her dad worked for free. They gave the girl the money as a wedding gift, and she didn't know anything about the money so it was a complete shock.

95gt

You will, most likely, have to pay income taxes on any earnings you withdraw from the IRA as an FYI.