Anonymous
09/30/2013 12:34
Subject: Investing money for college fund
If your friend told you to put it in a college fund, I would probably put the whole thing into a 529, as that account will have the child as beneficiary and is clearly marked for college. You can open one in your state if you want/get a tax deduction or Utah has a very good plan too.
Anonymous
09/30/2013 12:16
Subject: Investing money for college fund
Those are very good friends.
I echo those recommendation: IRAs and 529 plans.
Remember to tell your child(ren) about this friend. And try not to use it on daycare.
I echo those recommendation: IRAs and 529 plans.
Remember to tell your child(ren) about this friend. And try not to use it on daycare.
Anonymous
09/27/2013 17:45
Subject: Investing money for college fund
Anonymous wrote:My husband and I borrowed 17.5k from a friend in 2009 to buy a house. We recently sold the house and planned on giving the money back. However, I am newly pregnant and the friend has told us to keep the money and put it into a college fund for the baby. I am blown away and also have no idea the best way to do this. I don't think there are tax issues at this point and I just want to use it the best way possible - which I assume does not mean an ING savings account. Can anyone offer any guidance?
Put as much as you are allowed to into IRAs and convert them to Roth IRAs. Put the rest into 529 plans.
Don't forget to report the house sale on this year's taxes. Any depreciation claimed for home office or rental or whatever is taxed at a 25% rate, which you'll have to pay, so leave some cash aside for that if necessary (I.e., if you deducted $20,000 over the past three years, you'll owe $5,000 in taxes)
Anonymous
09/27/2013 17:41
Subject: Investing money for college fund
My husband and I borrowed 17.5k from a friend in 2009 to buy a house. We recently sold the house and planned on giving the money back. However, I am newly pregnant and the friend has told us to keep the money and put it into a college fund for the baby. I am blown away and also have no idea the best way to do this. I don't think there are tax issues at this point and I just want to use it the best way possible - which I assume does not mean an ING savings account. Can anyone offer any guidance?