Anonymous
05/28/2014 20:00
Subject: What is most important?
First, have a six month emergency fund. Second, be saving 15% towards retirement (college is theoretically optional, retirement isn't). Third, save for baby - a 529 is a good option if you're pretty sure baby is going to college. Fourth, a good budget to help save extra for vacations, car repairs, etc.
Good luck!
Good luck!
Anonymous
05/28/2014 14:27
Subject: Re:What is most important?
3 months of expenses in a rainy day/emergency fund. Take care of retirement because there are multiple ways to pay for college (i.e. loans, scholarships, own pocket, etc.). Have term life insurance and, eventually, look at a long-term care rider on a permanent policy.
I'm a big proponent of 529 plans as they are essentially a Roth IRA for your child, provided the child uses it on qualified higher ed expenses. Combine that with your state tax deduction received from them and they are the best vehicle for investing for a little one's education, in my professional/personal opinion.
I'm a big proponent of 529 plans as they are essentially a Roth IRA for your child, provided the child uses it on qualified higher ed expenses. Combine that with your state tax deduction received from them and they are the best vehicle for investing for a little one's education, in my professional/personal opinion.
Anonymous
05/28/2014 06:53
Subject: What is most important?
Good advice so far. The somewhat counterintuitive point is that the best help to your children's finances is not being a drag on them in your old age. So make sure debt, savings, insurance and retirement are calibrated to responsible levels. I don't know much about 529's in particular, other than there is not universal agreement on their benefit. Good luck!
Anonymous
05/28/2014 01:47
Subject: Re:What is most important?
Not sure if looked into it but make sure you and your spouse have term life insurance.
Anonymous
05/27/2014 20:34
Subject: What is most important?
The most important thing is to make sure your finances are solid-- meaning retirement and some sense of what you'd do for an "emergency fund" (although IMO you may not literally need 6 months expenses in a bank).
Your retirement is more important partly because no one will lend you money to cover living expenses in retirement, and partly because it's easier to move money from retirement funds to education than vice versa.
If you have done that and want to put some money aside for college, then open a 529. savingforcollege.com has a ton of info. Basically for small amounts you are probably fine either opening an account in your home state if you get a tax deduction, or just opening one in Utah and using their low cost funds. You can tell them the kind of things you want to invest in, and then just send them a little each month.
Your retirement is more important partly because no one will lend you money to cover living expenses in retirement, and partly because it's easier to move money from retirement funds to education than vice versa.
If you have done that and want to put some money aside for college, then open a 529. savingforcollege.com has a ton of info. Basically for small amounts you are probably fine either opening an account in your home state if you get a tax deduction, or just opening one in Utah and using their low cost funds. You can tell them the kind of things you want to invest in, and then just send them a little each month.
Anonymous
05/27/2014 20:14
Subject: Re:What is most important?
I'd check out this blog:
http://www.gailvazoxlade.com/
She had a TV show called "Till Debt to Us Part," brilliant.
http://www.gailvazoxlade.com/
She had a TV show called "Till Debt to Us Part," brilliant.
Anonymous
05/27/2014 19:05
Subject: What is most important?
Help for a floundering ftm if you would be so kind.
New baby and I'm staying at home, so our income is 1/2 what it used to be. We used to just save all of what I earn in a savings acct & some stocks that have done well. Now I'm not sure what we should be doing with savings (we can't put away nearly as much) ... What is the most important acct to have to save for baby? I saw something about a 529 in another thread... But what's the best overall way to save a little each month for baby??
New baby and I'm staying at home, so our income is 1/2 what it used to be. We used to just save all of what I earn in a savings acct & some stocks that have done well. Now I'm not sure what we should be doing with savings (we can't put away nearly as much) ... What is the most important acct to have to save for baby? I saw something about a 529 in another thread... But what's the best overall way to save a little each month for baby??