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I am looking to start a college savings plan for my 3 week old daughter and I am looking for ideas. My first thought was to just keep buying lottery tickets and hope for the best, but I figure I should have a back up plan just in case. I was just wondering if any of you have anything set up for your kids and what you like or dislike about the different plans. I am looking for one with a low initial investment and low minimum deposits. So far I am leaning toward the State of Michigan's 529 plan. Any help of advice would be appreciated. Thanks.
 

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We have an Education IRA through Vanguard Investments. Can put $2000 per year away. Grows tax free. Also put money into other mutual funds of our choice.
 

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I had an educational IRA with Putnam Investments for Danielle - she had so much $$ in bonds from her baptism and communion I cashed them in and did this instead. Much better return this way...

Good thinking on getting something started - you're a great parent to do so!
 

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QUOTE(FourWinns @ Feb 25 2004, 01:06 PM)I am looking to start a college savings plan for my 3 week old daughter and I am looking for ideas. My first thought was to just keep buying lottery tickets and hope for the best, but I figure I should have a back up plan just in case. I was just wondering if any of you have anything set up for your kids and what you like or dislike about the different plans. I am looking for one with a low initial investment and low minimum deposits. So far I am leaning toward the State of Michigan's 529 plan. Any help of advice would be appreciated. Thanks.

Since you are a fellow PPG employee.........Go to the home page and check out

http://ppg.web.ppg.com/ it only works from a ppg computer

under human resources.......There is a plan available there...
 

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Kids? I'm still working on me?
 
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For our kids, we bought them a boat. This way they will be able to relax over their summer vacation, and be well rested and ready to excell when school starts in the fall. Then they can get acedemic scholarships. I'm kind of thinking we should also look into an additional smaller boat so they could go for a waterski scholarship. The things we do for the children...
 

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There is something that the government has that you put like $500 a year in, and after so many years, your kid gets free college in the state...Anyone else hear of it?

For the record...Still paying off my student loan...My parents forgot to save for me
 

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QUOTE(Bill272 @ Feb 25 2004, 03:36 PM)For our kids, we bought them a boat. This way they will be able to relax over their summer vacation, and be well rested and ready to excell when school starts in the fall. Then they can get acedemic scholarships. I'm kind of thinking we should also look into an additional smaller boat so they could go for a waterski scholarship. The things we do for the children...
lol... I think that is what my parents did too. Expect all it really did for me is to convince me to buy my own boat instead of putting that money towards College.
Actually my parents had investments for me, but they decided not to take them out because the market is so much lower than what it was. So know my mom has actually gone back to work to pay for my tuition. So far I have not had to take out any student loans. I would help pay for it myself, but I don't even make enough to be able to support myself for the 6 months a year I am at school.
Scholarships are only available to Minorities and a select few who need a lot of financial assistance...
 

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QUOTE(Big_Mike_LCA @ Feb 25 2004, 04:10 PM)QUOTE(Bill272 @ Feb 25 2004, 03:36 PM) For our kids, we bought them a boat. This way they will be able to relax over their summer vacation, and be well rested and ready to excell when school starts in the fall. Then they can get acedemic scholarships. I'm kind of thinking we should also look into an additional smaller boat so they could go for a waterski scholarship. The things we do for the children...
lol... I think that is what my parents did too. Expect all it really did for me is to convince me to buy my own boat instead of putting that money towards College.
Actually my parents had investments for me, but they decided not to take them out because the market is so much lower than what it was. So know my mom has actually gone back to work to pay for my tuition. So far I have not had to take out any student loans. I would help pay for it myself, but I don't even make enough to be able to support myself for the 6 months a year I am at school.
Scholarships are only available to Minorities and a select few who need a lot of financial assistance...
You have a great mother to do that for you ~ give her extra extra extra hugs and kisses for that!
 

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We have a couple accounts set up, but we are also signed with Upromise.com, where a % of purchases goes into an account. It's not a ton but its on stuff you buy anyway.
 

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The Michigan 529 plan is a pretty good plan. If you are a Michigan resident, you get a deduction on your Michigan income tax return for every dollar you contribute (up to $10,000 in any one year for all accounts). Also, subject to some income limitations, Michigan will match some of the first years' contribution, but maximum match is $200. Administrative costs are low and you can always change investments or go to other plans (but only once a year). Minimum investment is also pretty low ($25, I think) and it will allow automatic payroll deductions for as little as $15 a pay period. Biggest negative is that you can't control the actual investments (you just pick one of three or so investment styles -- TIAA-CREF manages the money).

You can get more information at www.misaves.com

529 plans and educational iras are similar, but educational iras are a little bit more flexible in your control of the investment and in the type of school expenses it can be used for (main difference is educational ira can be used for primary school tuition while 529 plans are only good for post-highschool education expenses).
 

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I agree with RaySea - the 529 is a good plan. The state tax break is nice, and it is very easy to sign up online. I just checked our accounts - the growth is pretty good. I think the matching occurs only when the kids are pretty young, and the income limit is fairly low. Definitely worth checking into - free money is free money!
 
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