US Savings Bonds

Posts Tagged ‘best savings bonds kids’

Question: Best savings fund for children.?

When it comes to savings for my kids(ages 5 and 2) i have no idea where to begin. Something that once they are ready to go to college they have the money for it. Or perhaps if they would like to just start a life soon after highschool they have the funds for that also. Something that will grow very well throughout the years. We have 12 years before our first is ready to go down that path so its pretty good time frame. What are Mutual Funds, 529 plans, Savings Bonds, all of that? I have no idea! I thought about the gerber plan but i am not sure its the best thing. The help of those who already have these options would be appreciated as well as those who have the smarts about them. Thanx in advance!
i will get the 1000 and i will start something after that if its the best! as for how much i would like to have after the 12 years, as much as possible! it would be great if i could have at least 20 grand but more would be awesome.

Answer: A good 529 plan is the way to go if it is college that you are saving toward. These plans are tax favored. The interest or dividends build up tax free. You can invest in stock funds or money markets. Over time, stocks historically have proved to beat bonds and bank interest. No one knows what the future holds, but over the next 12 years they will likely outperform as well. Your state may have a 529 plan or you can choose from other states. Invest monthly and it will grow. Most plans allow as little as $50 per month.

Life insurance is not a good way to save for college.
The “Gerber Plan” you are talking about is probably life insurance and I would not recommend a mass market life product. Life insurance for your children is not as important as life insurance on yourself. You and your spouse should carry life to cover the cost of raising the kids if you die. Term insurance is less expensive and if you are in good health can get $500,000 for as little as $25 a month depending on age etc. If you do want to buy life insurance for kids, buy a small policy that would cover burial costs but allows for additional purchase later regardless of health. Fraternals like Woodmen of the World often have the added bonus of free or low cost summer camps for kids if they have a policy.

1976-78 Commercials Part 3 (Singer to Levi’s)